Big telco's lower-cost, wireless data-only plans are 'embarrassing,' critics say

Bell, Rogers and Telus' proposed lower-cost, data-only wireless deals are no deal at all, saycritics.The offerings include half a gigabyte (GB) of data for$30 a month.

"It's embarrassing and quite frankly it's rude to think that these are functional plans," said Laura Tribe, executive director ofOpen Media, a consumer watchdog group.

In March, the CRTCannouncedthatit would ensure Canadianshave access to cheaper, data-only wireless deals. The plans are meant to fill a void while the telecom regulatorreviews a recentdecision that effectively hinders smaller, WiFi-based, national discount wirelesscarriers from operating inCanada.

The CRTC asked the big three telcos Bell, Rogers and Telus to submit proposals for lower-cost, data-only deals on high speed 4G networks.

Both Bell and Telus have pitched a monthly plan offering .5GB(500 megabytes) of data for $30. Telusalsoproposeda prepaid plan offering 600 megabytes (MB)for $30 a month.

Rogers has pitched400 MBfor $25 a month.

After posting the proposals online, the CRTC has received more than 230 comments from Canadians. CBCNews read many of them and couldn't find one that supported the plans.

"They're basically not being fair for what they're providing,"said MartinSandbachofCorunna, Ont., who made a submission and spoke with CBCNews.

"It's a joke," saidJiashu XiongofBurnaby, B.C., who alsosubmitted a comment. "Offering such a low number for such a high price is not going to benefit anyone," he said in an interview."I would have data overagesall the time."

What about 10 GB for $60?

According to a recent CRTCreport, in 2016, Canadians used an average of 1.2 GBof mobile data every month at least doublewhat the telcos are offering in their lower-cost plans.The report also found that revenues from wireless data grew to $11 billion in 2016, an increase of 9.4 per cent from 2015.

Tribe from Open Media saysthat,in theircurrent proposals, the big threetelcosfail to fulfiltheCRTC'smandate to offer affordable deals to Canadians struggling with data costs.

She believes Bell, Rogers and Telus should modeltheir lower-cost, data-only planson the deals they offered in Ontario, Alberta and B.C. in December: $60 a month for unlimited calling and 10 GB.

"Instead we're seeing $30 a month for 500 megabytesbeing pitched," Tribe said. "It's outrageous."

"They're really low balling it," said Ben Klass, a telecom researcherand PhD candidate at Carleton University's School of Journalism and Communication.

He says that Rogers is actually offering a much more generous data-only deal through its discount brand, Fido: three GB for $15 a month for tablet users. However, this plan is only availableas a top-up offer for people already subscribing to a monthly cell phone plan, as indicated on Fido's website.

"These companies have never been interested in serving people who just want the bare-access minimum," said Klass.

TelcossayCanadians already have choice

Rogers, Bell and Telus all said in their CRTC submissions that Canada's wireless market already offers a variety of low-cost mobile plans, andthat their latest proposalswill provide consumers with even more options.

"We are proposing data-only plans at an economical price so our customers can stay connected," said a Rogers spokesperson in an emailed statement.

Telus told CBC News it's already offering inexpensive data-only plans through its discountbrand, Public Mobile.

SpokesperonRichard Gilhooleysaid in an email that the wireless market in Canada is "robust" and that it offers "a wide variety of flexibility and choice for Canadians."

Bell, Rogers and Telus allargue in their submissions that there's no need for the CRTC to regulate the lower-cost data-only plans, becausecompetitive forces will keep prices in check.

Both Tribe and Klass disagree. They saythe only way Canadians will get fair data-only deals is for the CRTC to mandate what the plans offerand the price, just as it did for basic $25 TV packages.

"Without public oversight, of course the companies are going to charge as much as they can," said Klass.