GATINEAU – Today the CRTC said no, for now, to Wi-Fi first mobile operators, effectively shutting down the business plan that was Sugar Mobile, it dramatically slashed the wholesale rates network owners can charge others to roam on their networks, and it gave Rogers, Bell and Telus a month to come up with new skinny wireless data plans for Canadians.
While confirming that Wi-Fi first network operators can not roam on cellular networks and become full fledged resellers, and making no determinations on mandated MVNOs, the Commission decided instead to respond to the federal government’s request to re-examine its wholesale mobile wireless roaming service tariffs with one new proceeding and holding another planned one much earlier.
In the first, the Regulator has asked the three big incumbents to submit new low-cost data only plans for consumers by April 23rd. The plans can’t be tied to customer income, have to be made available on the latest, greatest network (so no shuffling traffic off to 3G networks), be nationwide, and be available on post- and pre-paid plans. Plus, those plans have to fill the hole in the market for low cost plans for low income consumers which the Commission says is a serious problem. (We’ve dubbed it skinny wireless after the CRTC’s skinny basic TV).
While the large wireless providers did respond to us with basic boilerplate comments about how they support the Commission’s decision and look forward to participating in the new proceeding, ICE Wireless CEO Samer Bishay was more blunt in his assessment of the Commission’s demand.
“It seems like a warning shot to the big boys. They’re almost saying, 'you already got one slap in the face, so lower your prices or your going to get a second slap',” he said in an interview with Cartt.ca late Thursday.
Now, while the Commission has set no price or capacity parameters on what it has asked from Rogers, Bell and Telus, CRTC chair Ian Scott said that’s something the Commission could do if it doesn’t like what it sees. (Ed note; FWIW, the Commission did, of course, mandate a $25 skinny basic TV package after facing years of industry resistance there.)
“If we must", he said, “we can mandate one, including the cost,” adding that the data-only plans “will have to be low enough to find a meaningful place in the market.”
Scott also said he expects the other regional players to come up with their own offers in response – perhaps even prior to what the Big Three will propose. Videotron, he noted, already has a 500 MB for $30/month data plan. Once the Big Three have submitted their plans, reply comments are due by May 23rd.
The CRTC also announced that it has pulled another proceeding – the planned 2020 review of the wholesale wireless framework – ahead by about a year and a half, promising to begin it in the next year, instead. It is in that proceeding where it will likely reconsider whether or not MVNOs should be mandated or if Wi-Fi first operators should be allowed to roam on mobile networks.
When it comes to the new wholesale roaming rates, Bishay, while very disappointed the Commission stood firm on denying Wi-Fi first providers the right to roam, was pleased to see the drastic cut in the wholesale rates. “At least we can offer plans so that people can seamlessly (roam) and we’re not getting hit with a large roaming bill when people leave our zones,” he said.
As for ISED Minister Navdeep Bains, who was behind the federal government’s Order-in-Council for the CRTC to review its initial decision (explained here), his office issued a statement, happily noting the Commission “has reduced final wholesale roaming rates by 44% to 99%.”
“Today's decision by the CRTC is a step in the right direction, but more must be done: true affordability can only come from true competition,” said the Minister in the release.
The statement also said the government will review the decision and determine any next steps.
