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Appendix 5
International pricing assumptions
Below is a summary of the assumptions and methodology used in developing aggregate pricing indices for the international price comparisons shown in Table 6.2.1.
Table A.5.1 Service providers surveyed
| City | Service Providers |
|---|---|
| Canada | |
| St. John’s, NL |
Wireline: Bell Aliant, Rogers; Wireless: Bell Mobility, TELUS Mobility, Rogers Wireless |
| Halifax, NS |
Wireline: Bell Aliant, Eastlink; Wireless: Bell Mobility, TELUS Mobility, Rogers Wireless |
| Charlottetown, PE |
Wireline: Bell Aliant, Eastlink; Wireless: Bell Mobility, TELUS Mobility, Rogers Wireless |
| Saint John, NB |
Wireline: Bell Aliant, Rogers; Wireless: Bell Mobility, TELUS Mobility, Rogers Wireless |
| Montréal, QC |
Wireline: Bell Canada, Vidéotron; Wireless: Bell Mobility, TELUS Mobility, Rogers Wireless |
| Toronto, ON |
Wireline: Bell Canada, Rogers; Wireless: Bell Mobility, TELUS Mobility, Rogers Wireless |
| Winnipeg, MB |
Wireline: MTS Allstream, Shaw; Wireless: MTS Mobility, TELUS Mobility, Rogers Wireless |
| Regina, SK |
Wireline: SaskTel, Access Communications; Wireless: SaskTel Mobility, TELUS Mobility, Rogers Wireless |
| Calgary, AB |
Wireline: TCC, Shaw; Wireless: Bell Mobility, TELUS Mobility, Rogers Wireless |
| Vancouver, BC |
Wireline: TCC, Shaw; Wireless: Bell Mobility, TELUS Mobility, Rogers Wireless |
| United States | |
| Boston, MA | Stand-alone & Bundles: Verizon and Comcast (e.g. wireless) |
| Kansas City, MO | Stand-alone & Bundles: AT&T and Time Warner (e.g. wireless) |
| Seattle, WA |
Stand-alone & Bundles: Qwest and Comcast (e.g. wireless) Wireless (all cities): AT&T, Verizon, and Sprint |
| United Kingdom | |
| London |
Stand-alone & Bundles: BT (e.g. wireless), Virgin, Sky Wireline: Talk Talk; Internet: Orange, O2; Wireless: Vodaphone, Orange, O2 |
| Australia | |
| Sydney | Stand-alone & Bundles: Telstra and Optus |
| France | |
| Paris | Stand-alone & Bundles: France Telecom (Orange) and Neuf Cegetel |
Canadian prices were compared to those in the U.S., U.K., France, and Australia for wireline, wireless, and broadband services at three different usage levels. International prices for a bundle of four services (wireline, wireless, broadband, as well as a basic digital television package) at a medium usage level were also compared.
Prices were collected from the three or four largest service providers in each country, and then weighted by the market share of each provider. Sales taxes (provincial sales tax (PST), goods and services tax (GST)) and value-added tax (VAT) have been excluded, as have one-time service installation charges. Recurring charges (such as for 9-1-1, or network access fees) have been included. Prices were converted into Canadian dollars using purchasing power parity (PPP) translators published by the OECD.
Table A.5.2 Wireline service baskets definition
|
Local minutes of use (per month) |
Low-volume User |
Medium-volume User |
High-volume User |
|---|---|---|---|
|
Outgoing (55%) Incoming (45%) Total minutes |
220 180 400 |
550 450 1,000 |
880 720 1,600 |
|
Outgoing by time of day/week Peak (40%) Off-peak (60%) |
88 132 |
220 330 |
352 528 |
|
Outgoing long distance National minutes U.S. minutes Other international minutes Total minutes |
10% of total 16 6 22 |
20% of total 70 30 10 110 |
30% of total 150 80 34 264 |
|
Outgoing to mobile Local National International Total |
15% of total 33 33 |
15% of total 60 22.5 82.5 |
15% of total 100 32 132 |
| Average call length (minutes) | 3 | 3 | 3 |
| Optional features | |||
|
Voice mail Caller identification (ID) Other |
Yes Yes |
Yes Yes Yes (bundled, if available) |
Note: Wireline pricing reflects flat-rate unlimited local calling in Canada and the U.S,; in the U.K. and France, wireline is priced on a per-minute metered basis; in Australia, wireline local calling is priced on a per-call basis, but is otherwise unmetered.
Table A.5.3 Wireless service baskets definition
| Minutes of use/month | Low-usage | Medium-usage | High-usage |
|---|---|---|---|
|
Outgoing (60%) Incoming (40%) Total |
90 60 150 |
270 180 450 |
720 480 1,200 |
|
Time of Day/Week Peak (40%) Off-peak (60%) |
60 90 |
180 270 |
480 720 |
|
Long Distance National U.S. Other Total |
10% of total 9 9 |
10% of total 21 6 27 |
15% of total 90 18 108 |
|
Calls to Mobile On-net Off-net Total |
50% of total 30 15 45 |
50% of total 135 67.5 202.5 |
50% of total 350 175 525 |
| Average Call Length | 3 min. | 3 min. | 3 min. |
| Features | |||
|
Voice mail Caller ID Other |
Yes Yes |
Yes Yes Yes |
|
| Data | |||
|
Short Message Service (SMS) Multi-media Messaging Services (MMS) |
40 |
100 5 |
|
| Data Service | 5 Mb |
Note: Low-volume users are assumed to purchase prepaid wireless packages, whereas medium and high volume users are assumed to be using post-paid plans (generally based on two-year contract rates). Handset costs are not reflected in these usage price comparisons.
Table A.5.4 Broadband (Internet access) service baskets definition
| Elements | Low-Usage | Medium-Usage | High-Usage |
|---|---|---|---|
| Transmission Speed |
Lite Services < 1 Mbps |
High-speed ~ 5 Mbps (2 – 8 Mbps) |
Very high-speed > 10 Mbps |
|
Usage Allowance |
25 Gb | 60 Gb | 100 Gb |
| Modem | Rental/24-month amortization | Rental/24-month amortization | Rental/24-month amortization |
