Don’t Wait for CRTC Regulation to Save Money on Roaming

by | Sep 3, 2013 | Blog, Featured, Portfolio, Wireless | 0 comments

In their recent campaign to change the 700 MHz spectrum auction rules, Rogers, Bell and TELUS spent considerable effort trying to convince Canadians that, among other things, their rates  are fair and competitive.   Consumer complaints however suggest otherwise, at least  when it comes to roaming charges.   The CRTC announced on August 30th that due to consumer concerns, it is seeking additional information from the wireless carriers regarding rates and terms and conditions associated with wireless roaming. http://www.crtc.gc.ca/eng/archive/2013/lt130830.htm#a1a This could be bad news for the Big Three.  Roaming is clearly a profitable activity for the wireless operators in Canada.   According to the CRTC 2012 Communications Monitoring Report, in 2011 total roaming revenue for wireless operators was $1.356 billion, up almost $200 million from the $1.166 billion in 2010.  Vince Valentini, Managing Director at TD Newcrest has estimated that roaming contributes as much as 5% to wireless carriers’ average revenue per user (ARPU) and a phenomenal 8% – 9% to EBITDA due to high gross margins.  Is your organization a major contributor to Big Three roaming profits? This CRTC investigation could be good news for wireless customers, particularly large organizations that are most susceptible to experiencing bloated roaming charges through a combination of excessive rates, locked phones and a lack of transparency on roaming charges. It is not uncommon to hear horror stories from wireless users that travel internationally and see exorbitant roaming charges upon their return.  Due to consumer concerns, the CRTC already took some action on this matter when it established the Wireless Code in June of this year.  http://www.crtc.gc.ca/eng/info_sht/t14.htm The Wireless Code states the following:

International roaming notification
  1.       i.        A service provider must notify the customer, at no charge, when their device is roaming in another country. The notification must clearly explain the associated rates for voice, text messaging, and data services.
  2.      ii.        Customers may opt out of receiving these notifications at any time.
Cap on data roaming charges
  1.       i.        A service provider must suspend national and international data roaming charges once they reach $100 within a single monthly billing cycle, unless the customer expressly consents to pay additional charges.
  2.      ii.        A service provider must provide this cap at no charge.

These are positive actions however; the Wireless Code only covers new or modified contracts in effect as of December 2, 2013.  It is advisable to contact your wireless provider to see if you can have an existing contract amended to reflect this regulatory change. The Wireless Code also requires the following:

Unlocking
  1.       i.        A service provider that provides a locked device to the customer as part of a contract must
    1.                     a.        for subsidized devices: unlock the device, or give the customer the means to unlock the device, upon request, at the rate specified by the service provider, no later than 90 calendar days after the contract start date.
    2.                     b.        for unsubsidized devices: unlock the device, or give the customer the means to unlock the device, at the rate specified by the service provider, upon request.

Unlocking phones will permit organizations to have their employees buy and use SIM cards in the destination country to get the benefit of local rates when making local calls, or to use international SIM cards that offer reduced international roaming rates.  There are a number of options for unlocking mobile phones today and at lower rates than you would need to pay your wireless carrier. So while this CRTC fact finding mission along with the Wireless Code may lead to significantly reduced roaming charges in the future, why wait?   If you really want to save money on roaming and other wireless charges, there is no substitute for good wireless management practices.   At TelecomConsult we can review your wireless spend to find out where you are needlessly incurring excessive roaming and other charges.  Furthermore, we can provide you with policies, solutions and services to reduce all of your wireless charges on an ongoing basis.

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