R4NT Magazine

NEWS

This Horse is Dead

by MaxPower

So why do I keep on flogging it? Because like insurance companies and bank fees, mobile phone costs are one of the only things that gets Canadians riled up it seems.

Today I see an article titled New text-messaging fees a cash grab: observers, which is, of course what we had been saying here and here.

Some good quotes from the article include:

Industry observers are weighing in on plans by two of Canada's wireless carriers to charge for text messaging, denouncing claims that the service overloads cellphone networks as a money grab.
I don't buy the argument (of increased messages adding stress to the network) because I see the numbers, I know the costs of these platforms and the cost of the [entire network] is not that bad. If it's dimensioned properly, there's no stress on the network," the source said.
As Bell and Telus continue to get outflanked by Rogers Communications Inc., the current wireless market-share leader and the sole operator of the globally adopted GSM network standard in Canada. Both Bell and Telus are looking for ways to mine more revenue from their customer base as the rate of new subscribers slows down.
"It's a competitive market," said Bell spokesman Jason Lazslo. "Implementing this fee is simply aligning ourselves with the competitive marketplace."

Competitive market my ass, it is an oligopoly and an oligopoly in which only two players are instituting this fee.