Rogers Home Phone Price Increase
The Toronto Star is reporting that Rogers intends to increase the price of it cheapest home phone plan by 4%. The increase is being applied to its controversial "system access fee" which will go from the current $4.50 to $5.95.
The increase will come as a surprise to many who believed that the trend toward deregulation initiated by the federal government last April, would lead to lower prices, not price increases.
As, I've stated here previously, I am in favour of a deregulated phone market. Despite this latest blip, I am convinced that the rapid advances in technology, changing demographics and deregulation will eventually benefit consumers with lower prices and innovative services.
There hasn't yet been enough pain felt by the incumbents to motivate significant innovation or to prompt them to begin the cannabilization of their own services and revenues. But, I remain convinced that it is inevitable. New competitors with new business models are on the horizon. In the meantime, Rogers and the rest, will continue to charge whatever they believe the market will bear.
Stumble It!
The increase will come as a surprise to many who believed that the trend toward deregulation initiated by the federal government last April, would lead to lower prices, not price increases.
As, I've stated here previously, I am in favour of a deregulated phone market. Despite this latest blip, I am convinced that the rapid advances in technology, changing demographics and deregulation will eventually benefit consumers with lower prices and innovative services.
There hasn't yet been enough pain felt by the incumbents to motivate significant innovation or to prompt them to begin the cannabilization of their own services and revenues. But, I remain convinced that it is inevitable. New competitors with new business models are on the horizon. In the meantime, Rogers and the rest, will continue to charge whatever they believe the market will bear.
Stumble It!
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