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Wholesale regulation means retail competition — survey says consumers get it.

October 19, 2016. Chatham, Ontario.

On the heels of the CRTC’s major October 6 decision to lower telecom prices for competitor access, a new TekSavvy-commissioned survey suggests consumers understand, and share, the CRTC’s view that these changes are meant to benefit them, and not just telecom competitors.

On October 6, the CRTC issued an important corrective to competitor prices that were neither “just” nor “reasonable”, pointing to evidence that competitors like TekSavvy pay network access prices that aren’t justified by their costs. TekSavvy wanted to get a better sense of whether consumers saw these changes as ones that would benefit them, too. So the company turned to an app called Bounty, which pays end-users small amounts in exchange for filling out surveys, to quickly recruit a panel on just that.

The panel is no scientific sample. But the first 420 Ontario and Quebec app users who responded found overwhelmingly that the CRTC’s decision to reduce wholesale pricing was right for Canadians (84 percent). They said that only two Internet competitors just isn’t enough competition (89 percent) – although most respondents were customers of one of the big two incumbents in their area. And they found that, on a scale of 1 to 10, their trust level in their telecom provider was 6.42.

“We weren’t surprised at the respondents’ appetite for lower prices and more competition,” explained TekSavvy CEO Marc Gaudrault. “But we wanted to get a feel for whether consumers see a decision like this as one that has them in mind. Our sense from this survey is that they do. Although this was a small and quick market study, it clearly shows strong support for the CRTC’s consumer lens.”

The panel recruited was a relatively tech-savvy one:

  • Their monthly Internet costs averages $75.02.
  • Their average download speed was 73 Mbps.
  • Although overwhelmingly customers of incumbent services providers, at 73 percent, more than a quarter used independent providers.

“These are the people we’re fighting for!” exclaimed Gaudrault. “They know they’re paying too much for Internet. They know a market with robust competition where they can’t be held hostage is the only way to get there.”

Survey Details

1) Who is your current Internet provider?

Rogers 39.29%

Bell 24.52%

TekSavvy 13.1%

Cogeco 4.52%

Other 18.57%

2) What are you paying each month for Internet service?

$75.02 (average)

3) Dont you feel you're paying too much for Internet service?

Yes 71.19%

No 28.81%

4) How fast is your Internet service? (Mbps)

73Mbps (average)

5) How much do you trust your Internet service provider? (1-10)

6.42 (average)

6) Is there enough competition in the Internet market in Canada?

Yes 31.43%

No 68.57%

7) If there were only two choices for you to buy home Internet access from, would you feel like that was enough competition?

Yes 10.71%

No 89.29%

8) How important is it that there be alternative Internet suppliers like TekSavvy in the market place?

8.54 (average)

9) Do you feel the CRTC is doing what's right for Canadians with their decision last week to reduce wholesale pricing to create a more competitive telecom market in Canada?

Yes 84.29%

No 15.71%

About TekSavvy Solutions Inc.

TekSavvy prides itself on fighting for a fair playing field that delivers the best results to consumers, and works hard to be at the forefront of protecting Canadian consumers' rights online. Founded in 1998, TekSavvy is an independent telecom provider that employs more than 500 Canadians in Chatham, Ontario and Gatineau, Quebec, and provides service to more than 250,000 Canadian homes alongside growing business and wholesale offerings. "We're Different. In a Good Way."

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