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CWTA: Canada enjoy the lowest prices in mobile services (2)

July 13th, 2007 · by Heri · Mobile

CWTA stands for for Canadian Wireless Telecommunications Association , or Association Canadienne des Télécommunications Sans Fil in French. They praised yesterday a recent report by the OECD or Organisation for Economic Cooperation and Development which states that Canadians get the most competitive wireless prices in North America. They continue by saying it’s the result of a true competitive market and Canadian entrepreneurship.

However, everyone who works in the hi-tech industry knows otherwise. Canada has the highest prices of data plans in the world. Pierre-Karl Péladeau, head of Québecor and Vidéotron, has said recently the big 3 telcos have “setup an oligopole” in the mobile telecommunications industry. Dr. Michael Geist, an expert in law, internet and new technologies in Ottawa, also just showed canadian suscribers would have to pay about 295$ to get the iPhone running, while it costs $60 in the US. If you ever travelled to the States, Europe or Asia, you know that Canada has the lowest user adoption amongst OECD countries.

The OECD report just contradicts common sense. I could laugh at it but I can’t. I know it’s dangerous because it will be used by CWTA members (telecommunication corporations) to raise or justify their prices, at the expense of consumers.

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