Key Cost Drivers of Mobile Wireless Services in Canada: Implications for Pricing

Categories: Uncategorized

October 5, 2020 - Mark Meitzen and Nicholas Crowley

TELUS, a Canadian national telecommunications company, engaged Dr. Mark Meitzen and Nick Crowley of Christensen Associates to conduct a benchmarking analysis of wireless telecommunications cost drivers in G7 nations. In the previous phase of our analysis, Christensen Associates measured the individual differences in key mobile wireless service cost drivers between Canada and a set of Benchmark (peer) Countries.

In this phase of our analysis, we build on the individual cost driver results from the previous analysis to determine the aggregate impact of these cost differences between Canada and the Benchmark Countries. We also assess the aggregate impact of these differences between Canada and the Benchmark Countries on prices. We find that the cost disadvantage faced by Canadian mobile wireless service providers is pronounced and has direct implications for the pricing of wireless services. As a matter of public policy, it is not possible to draw any meaningful conclusions about “competitiveness” without benchmarking prices against the underlying costs of providing the services in question.

Meitzen and Crowley’s report is available here.
Meitzen and Crowley’s report (with US included) is available here.