As we wrote about earlier this summer, both Telus and Bell Mobility have increased SMS rates from 10 to 15 cents and begun charging for both incoming and outgoing messages.
This move appeared to annoy Canada’s Minister of Industry Jim Prentice who requested a meeting with Telus and Bell to discuss the new charges. Prior to the meeting, Jim sounded very pro-consumer. However, having now met with Telus and Bell Mobility Prentice has a decidedly softer view. Instead of disagreeing with the practice of charging for incoming texts, Prentice is now encouraging consumers to seek out different options if they don’t like the charge.
There is a problem here. If Canada’s major carriers begin a new trend and other carriers run with it, there won’t be an alternative for customers to choose.
Canadian carriers appear to be following their southern neighbor counterparts in an effort to drive their average revenue per user (ARPU) number as high as possible. ARPU has replaced “net adds” or “new customers” as the single most important metric carriers look at to determine growth and profit. They want data! And if customers won’t voluntarily buy a message bundle, then darn it they’ll raise the per message cost until they cave.
If current US trends are any indication, the Holy Grail for carriers is to get everyone on an all-in-one plan, which will simultaneously drive their data profit and give the appearance of a good deal to customers.
Comments (3)
seek other options as long as you haven’t locked yourself into a contract that is.
You got that right. I dont understand why we have 3 year contracts, and i dont understand why they charge for text when it doesnt cost them a dime to provide text messaging service. Good thing im with Rogers, i mean i know there not the greatest but id rather be with them than Bell or Telus!
‘Seek other options’?
ok Mr. Prentice, how’s this for another option? In the next election, we elect a government that cares about consumers. (Hint: you won’t be in it).
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