I hope you heard the news yesterday: the CRTC approved metered internet billing.
Aside from how outraged I am about that news, I’m going to say something rather bold: Rogers, Bell, and Telus are killing innovation in Canada.
Every single year, we are gouged to the bone by these three gigantic corporations by receiving less service for more money. They treat us poorly, and they know they can get away with it because we have no choice. They don’t need to improve a damn thing because we are stuck.
So let’s take a look at exactly why they are killing us:
Rogers is made up of three business units: Rogers Wireless, Rogers Cable, and Rogers Media. As of the end of Q3 in 2010, the entire unit generated $2,545 million in profits. (Source – Adjusted Operating Profit minus PPE Expenditures) Here’s the breakdown:
Rogers Wireless: $1,879 million
Rogers Cable: $583 million
Rogers Media: $83 million
TOTAL: $2,545 million
Bell is, like Rogers, made up of three business units: Bell Wireline, Bell Wireless, and Bell Aliant. As of Q3 2010, they had earned $1,084 million in profits. (Source – EBITDA minus Capital Expenditures) Here’s the breakdown:
Bell Wireline: $513 million
Bell Wireless: $346 million
Bell Aliant: $225 million
TOTAL: $1,084 million
Telus has two business units: Telus Wireless and Telus Wireline. As of Q3 2010, they had earned $1,609 million in profits. (Source – EBITDA minus Capital Expenditures) Here is the breakdown:
Telus Wireless: $1,284 million
Telus Wireline: $325 million
TOTAL: $1,609 million
So what does this tell us? Within 9 months of the year, each company had already earned at least $1,000,000,000 in profits alone. When you go on the record to say that “the explosive growth in Internet traffic and the load it puts on networks mean flat-rate pricing was no longer viable” (Source) then I know you are just being a profiteering douche.
You have the resources and the capital, why would you not upgrade your networks instead of raising our prices? If you were increasing my speed and bandwidth while raising my prices, I wouldn’t really think too much of it. However, when all three of you lobby to raise prices because you can’t compete?
That’s monopolistic, and exactly the type of behaviour that kills innovation.
Welcome to Canada.