According to The Wire Report, internal emails citing the Liberal Party’s election promise of a 25% cut in wireless prices will now take place “organically” without government involvement.
The details were seen in an email acquired through access to information, written from Innovation Canada to the Privy Council Office (PCO), noting that changes in the market mean that wireless prices will fall “organically”.
Analyst Margarete Ling with PCO wrote in an email, “ISED estimates the commitment to a price reduction of 25 percent per gigabyte (GB) during the mandate, will happen organically without intervention beyond measures the government already takes and therefore, to continue with the status quo measures are expected to achieve the desired result. ”
“In this sense, prices are falling organically. But at the same time, consumption is constantly increasing. Canadians will no longer have lower GB plans. Therefore, it is unlikely that price / GB reductions will result in the promised savings of $ 1000 a year, “reads the email received by The Wire Report.
The conclusion from ISED was based on falling wireless prices worldwide, and the liberal promise associated with a 5 GB plan, which can now be achieved for the price of a 2 GB plan from years ago, describes the e-mail.
The Liberal Party promised savings of nearly $ 1,000 per year for a middle-class family of four, as part of the re-election platform. A price tracking for plans of 2 GB to 6 GB from wireless founders was launched back in July, and targeted intermediate plans that have not fallen as much in price as low-end and high-end plans.
Prime Minister Justin Trudeau also promised to expand the establishment of mobile virtual network operators (MVNOs) in Canada, to increase wireless competition. The e-mail states that it has also investigated mixed reactions from provinces to MVNO, with some supporting the latter as a way of influencing prices, while others were concerned about possible reduced investments with telecommunications companies.
The government is spineless when it comes to telecommunications policy in this country. Completely trapped by the industry. And we all sit and pay more because of it. https://t.co/TQUtQhlw7m
– David Moscrop (@David_Moscrop) October 15, 2020
We wish we could not say that, @NavdeepSBains, but we told you so. This approach was deeply flawed right out of the gate. People need more data, more vendor choices and lower bills in general. When will we see a real plan that addresses this? https://t.co/NPoTCBztlM
– OpenMedia (@OpenMediaOrg) October 15, 2020
The document states that wireless operators will “oppose measures against MVNO access”, while consumer groups will have the opposite attitude. It also adds, “the public will be for.”
The partially edited email was written days after the 2019 federal election.
The federal government had harsh words and said before, if wireless operators did not lower prices by 25%, it would intervene to make it happen. Now it seems that the government will not even threaten the MVNO expansion to turn its arms to wireless founders. Geez.