Bell's Bargain-Basement LD Draws Wrath
A common theme during the first day of RBC Capital Markets' conference was the carping about Bell Canada's $5 a month long-distance plan that it introduced last summer. Everyone not only had to match the Wal-mart types prices to stay in the game, but now everyone launching VOIP service - at least in Eastern Canada - has to take into account they are unable to use cheap LD as a selling feature because Bell has taken the bottom out of the market. One CEO dismissed Bell's LD pricing as “a disaster”.
For consumers, a troubling undercurrent is the feeling among CEOs that prices need to be increased to justify ROI and return on equity. There seems to be a common belief Canadians have been spoiled by cheap communication services, particularly compared with the U.S. Of course, these executives are anxious, if not desperate, for ways to boost revenue so price increases are an easy way to do it if all your “competitors” abide by the same rules.
We're not talking about collusion here, are we?!
February 24th, 2005 at 11:46 am
Sounds like collusion to me… and their feeling that we get a better break than the Americans is a load. LD and wireless charges are generally more competitive than in Canada.