Canada has the highest roaming costs, says new OECD report

Telus is the first of the big three telcommunications companies to drop roaming fees.

Ottawa (15 June 2011) - Most Canadians who own a cellphone were not surprised last week to read another report indicating that Canada has some of the highest fees globally when it comes to mobile phones. The latest report is from the Organisation for Economic Co-operation and Development (OECD) revealing that Canadians face the highest data roaming charges of all OECD countries.

For Canadians travelling outside of Canada, the average cost was $24.61 per 1 megabyte (MB) used in a single session, if they were Rogers or Bell subscribers.

The lowest fees were found in Greece with consumers paying $4.17 in fees. The United States was the second highest in rates with $21.58 in fees. The OECD average is $9.48.

The report also includes several other baskets of roaming data with Canada typically ranking among the most expensive (with the exception of 20 MB packages). While costs decreased somewhat for a bigger data package over a longer timeframe, the report still concluded that prices are high.

"Current pricing levels indicate that there is, in general terms, either insufficient retail or wholesale competition," the report said, adding that there is a "strong case for new consumer protection and empowerment measures."

Immediately in response to the study, the big three telecommunications companies, Bell, Rogers and Telus announced they had plans to reduce roaming costs. Telus announced that it had already made the decision to cut the rates prior to the release of the report.

Telus customers will now all be charged the same rate while abroad and won't have to buy separate roaming bundles or passes. Data usage for all international areas will cost $10 per megabyte. While the data rates remain above the OECD average, the reduction more than halves Telus' previous rate.

Rogers stated that it has plans to roll out new rates but was waiting for Telus' announcement. Bell offered a similar statement.

Roaming fees no longer exist throughout the European Union (EU) and many other countries are looking to remove these costs altogether.

Telus' decision to reduce fees is a possible signal that the telecom industry is finally hearing what the public has been saying: enough is enough.

"Canadians do not need yet another report to tell them what they already know," says James Clancy, national president of the National Union of Public and General Employees (NUPGE). "Any one who sees their cell bill knows the costs do not reflect the services received. What is at question, is when will the Conservative government act on their behalf to reign in these out of control costs?"

NUPGE

The National Union of Public and General Employees (NUPGE) is one of Canada's largest labour organizations with over 340,000 members. Our mission is to improve the lives of working families and to build a stronger Canada by ensuring our common wealth is used for the common good. NUPGE

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