Battle could be brewing over timing of proposed mobile service rate cuts

One of Canada’s major mobile service providers appears to have set the stage for a battle with Ottawa over the timing of proposed wireless rate cuts.

Telus and affiliated brands Koodo and Public Mobile recently placed what they are calling a “True North Affordability” stamp on their websites — a move one consumer advocate says is an attempt to reset the starting point for a Liberal campaign pledge to reduce wireless rates.

The promotion comes ahead of regulatory hearings this week that could eventually result in more small competitors in Canada’s wireless industry, putting pressure on the bigger players to lower prices and improve services.

Prime Minister Justin Trudeau’s election platform included a promise to slash cellphone rates by 25 per cent, a commitment the Liberals said would save a family of four an average of nearly $1,000 per year. The Liberals based their pledge on a 2018 pricing comparison model which Telus, Koodo and Public Mobile now say they have already exceeded.

Last month, however, federal Industry Minister Navdeep Bains made clear that he viewed the starting point for the cuts as mid-december 2019, when he received a mandate from Trudeau to ensure prices are lowered.

Prices in Canada’s mobile wireless market declined by an average of 28 per cent from 2016 to 2018, according to a 2019 report from the Canadian Radio-television and Telecommunications Commission.

On a page prominently displayed on its website, Telus says its plans are already competitive. “We reviewed our current in-market pricing to ensure our plans meet — or exceed — the $2,929 annual target for a family of four” identified by the Liberals, said Telus.

Telus is scheduled to appear at CRTC hearings on Thursday.

Canada’s two largest wireless providers, Bell and Rogers, have so far not issued similar marketing statements.