Canadian wireless operator Telus Mobility is cutting a year from its traditional three-year contract plans, now allowing customers to gain access to postpaid rate plans with a two-year commitment. The three-year plan has been a staple of the Canadian wireless market, used by all three of the country’s nationwide operators.
The move to cut a year from contracts follows a recent government mandate that proclaimed beginning Dec. 2 all new contract customers will be able to get out of three-year contracts without having to pay a cancellation fee as part of the new “wireless code.” The move is part of a government attempt to infuse more competition into the country’s wireless market, something Telus downplayed as a concern citing a recent report from the Organization for Economic Co-operation and Development.
“The wireless code is a tool that will empower consumers and help them make informed choices about the service options that best meet their needs,” said Jean-Pierre Blais, chairman of the Canadian Radio-Television and Telecommunications Commission. “To make the most of this tool, consumers also have a responsibility to educate themselves.”
The CRTC also said it would require carriers to cap data overages at $50 per month and international data roaming charged at $100 per month; allow customers to unlock devices after 90 days of service or immediately if the device has been paid in full; provide a 15-day return window for customers signing up for new service; and receive a contract that “is easy to read and understand.”
Telus Mobility announced that the two-year contracts would be available beginning July 30 with new plans featuring unlimited voice calling, messaging and shared data buckets with a two-year commitment through its SharePlus plan. The plans are similar to shared plans rolled out by Verizon Wireless and AT&T Mobility last year.
The Telus Mobility plans charge $55 per month for a smartphone; $45 per month for a smartphone “lite,” which it considers “lower-tier smartphones such as the iPhone 4 and Samsung Galaxy Ace II X”; $35 per month for those needing only a SIM card; $20 per month for a tablet; and $10 per month for a customer bringing their own tablet. That pricing includes the unlimited voice and messaging part of the service.
To add data, customers will pay an additional $15 per month for 250 megabytes; $30 for 1 gigabyte; $45 for 2 GB; $60 for 3 GB; $100 for 6 GB; and $150 for 10 GB. All pricing is of course in Canadian dollars.
The move by Telus Mobility could also be seen as a pre-emptive strike against potential new entrants into the country’s mobile space. Verizon Communications has said it was interested in entering Canada’s cellular market, with the potential acquisition of a current player or two that have struggled to gain a profitable foothold.
The Canadian government is also looking to encourage stronger competitors in the market through rules set up for its planned auction of 700 MHz and 2.5 GHz spectrum licenses. Those rules will include spectrum caps in a move to ensure that at least four new entrants enter the wireless space. In addition, build out requirements for rural areas will also be in effect for those companies acquiring two blocks of paired spectrum.
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