Canadian Mobile Networks Conspire: Users Suffer, Fall Further Behind Other Countries

Many have read the report that we are paying the third highest fees for Cell phone use of the developed world. Now there is mounting evidence that the three main providers are deliberately holding back technology from the market.

Take for example Rogers and the Android phones built by HTC of Taiwan. The Dream and Magic are being sold as the newest smartphone technology on Rogers’ superior GSM network. While it is true that the phones can access the 3G network (on occasion), the “smarts” within the locked down phone are three versions old. The newest OS for the Android is 2.0. The Android Market where one gets the cool new “aps” for the phone has plenty of offerings to entice us consumers to sign up for 3 years and take the plunge into the world of airtime and data. Here is the rub: Most of the advanced aps are built for OS 1.6 or better. You can’t even access the ap with version 1.5.

I tried to get a version of Google Googles a fun new ap that allows you to take a picture of a business card or a building and the phone will store it in your contacts data base. Pretty cool! Only I can’t get it! This ap and many others need Android 1.6.

So why not simply upgrade? Well it seems that this is where the conspiracy begins. HTC the maker of the phone has released Android 1.6 for the Dream and Magic. Rogers would not even admit that their phones were out of date. Finally after being pressed by angry consumers a top manager from the President’s Office admitted that Rogers must test the OS before releasing it. This seems like a red herring to those on the Anroidforums who have been tracking this issue since early October 2009. T-Mobile in the USA has rolled out 1.6 on the HTC G1/Dream and MyTouch 3G/Magic devices.

You might think that this is nothing more than a company that has a captive market for the most part and is simply not that interested in supporting customers. It could look like that, so where is the conspiracy? Rogers is fearful of the new technology. It has the ability to take a serious bite out of their airtime profits. You see smartphones use data much like your computer at home. We all know what software like Skype did to landline telephone margins. Rogers is afraid that if these new data phones are unlocked and have the ability to download similar software then airtime charges might be a thing of the past. Rogers has a data plan for $30 per month which allows the user to transfer 6GB. When one considers texting charges it gets even more interesting. SMS is not needed when you consider the social network aps like Facebook and Twitter. So there go the fees for the upgraded all you can text plan. 

An average cell phone account runs at around $75 / month when you take into account airtime, text, voicemail, call display and a few other goodies that you must take with a bundle. All these services could be replaced by software on a smart phone. Rogers reports nearly 8 million subscribers under the Rogers and Fido brands. If each of these subscribers reduced their monthly bills by $45 it would equate to a loss for Rogers of $360mm each month. Rogers is not about to let that happen. 

Prior to the release of Apple’s iPhone Rogers had thought that a new revenue stream would be media and entertainment over their 3G network. Well itunes put the boots to that idea. Rogers has been beaten to the punch. It is obvious to all upper management that given the current direction of technology and the introduction of new players such as Globalive’s Wind and the worst kept secret Google’s Nexus One expected out in January 2010, Rogers wireless could be relegated to basic data carrier status.

To all those users who are thinking about getting a smartphone from Rogers, Bell or Telus. I say hold on! Consider these options 

• If you must get on the bandwagon, do not sign a contract.


• Insist that Rogers guarantees timely updates on phone OS (90 days maximum)


• Do not pay more than $30 for 6GB of data transfer each month.


• If you have the technical ability, consider an unlocked phone and “root” the OS


• Ask for a 30 day return gurantee.


• Have someone from Rogers management gurantee that the OS compares to that being sold by US carriers like T-Mobile, Verizon or AT&T

Your Rights as a Consumer:

Why should we be held back by Rogers, Telus and Bell? These companies were given CRTC protection so they could build wireless networks without fear of foreign competition. This protection is now being abused. With no threat of a foreign carrier competing and offering advanced technology, the Canadian wireless companies are stalling until they can figure out how to lock consumers into contracts or services that will gurantee the billions of dollars that these companies are now addicted to.

They have no reason to offer better services or update products. You have no other choice.

What does this means to Canadian business? We become less competitive as we fall behind technically. Other nations are at a distinct advantage in developing services, software and hardware to take advantage of the 3G and now 4G technologies.

This is about more than a whimsical “ap” on the iPhone, Blackberry or Android phone. This is about fair market practices. Right now, we are being used and exploited. Unless we refuse to accept the status quo and request the there be an investigation into the practices of the major wireless carriers, we will continue to slip behind the rest of the developed world. 

Vote with your wallet! Hold Rogers accountable, stand up for your rights as a consumer.