Posted: Jun 13, 2019 (article written by CBC news)
Link: https://www.cbc.ca/news/business/bell-matches-rogers-cellphone-data-plans-1.5173641
Summary: Bell Canada has followed Rogers by matching an “unlimited” cellphone data plan with no overage fees for downloading more than 10 gigabytes of data each month. But like the Rogers plan announced yesterday, customers will experience slower speeds once those 10 gigabytes have been used. Both companies are offering the service starting at $75 per month. The announcement on Bell’s website said that beyond 10 gigabytes, “speeds will be reduced for light web browsing, email and texting.” Telus, meanwhile, also came out on Thursday with a beefed up data plan that would allow customers up to 15 GB per month for $75. Unlike Rogers’ plan which the company says is permanent, and similar to Bell’s which is a promotional offer, the Telus offering is only for a limited time, available to anyone who signs up by July 2. While offering a higher data limit, the Telus offer is not “unlimited” in that any customer who goes over the 15 GB limit in a month would be charged the usual pay-per-use overage rate of $10 per 100 MB. Nonetheless, the beefed up data plans represent a shift in Canada’s cellphone service landscape, where companies have been slower to adopt unlimited plans than their counterparts in the United States. However, unlimited data plans have been available from regional competitors, such as SaskTel in Saskatchewan and Freedom Mobile, which operates wireless networks in Ontario, Alberta and British Columbia.
Stakeholders: How different people and organizations can be affected:
Bell, Rogers and Telus: These companies will be affected because they are offering “unlimited” cellphone data. It’s not been clear yet that which company will be able to make more profit.
Consumers: They will be affected negatively and positively. They are getting “unlimited” cellphone data which affects the consumers in a positive way but after 19 gigabytes they will experience slower speed.
Competitors: Other companies will be affected negatively because of these plans. As a result, they will loose their customers.
Non-users: People who don’t have cellphone data plans will not be affected.
Users of Social Media: People who use social media will be affected because of these changes.
Personal Response: I think people will not switch their data plans and they will stay with the same company because the data plans of Bell, Telus and Rogers have kind of similar things. But the companies will try to attract more customers by giving them fast speed.
Questions: Do you think people will switch their cellphone data plans?
How can these companies attract more customers?
Economics 12 