MyCellMyTerms on CBC Show Dragons' Den

Can Rate Plan Broker Effect Change in Canada?

On the hit CBC series Dragons' Den on Wednesday, October 21, 2009, millions of Canadian viewers will be introduced to MyCellMyTerms.com and learn of their unique service and struggle to succeed.

Some might even come to perceive this small internet company as a huge catalyst for change.

Cellphone Rates in Canada

Most African countries get more economical cellular service rates than Canadians, who pay the third highest rates in the world. The Organization for Economic Co-operation and Development (OECD) did an international comparison study of 780 calls made, 600 text messages and 8 multimedia messages sent per year, and found that Canada has the third-highest wireless rates among developed countries. The United States had the highest rates for this "medium-usage" package, followed by Spain.

The numbers came out like this: Canadians paid $500 US a year for their cellphone service, compared with $635 for Americans and $508 for Spaniards. Dutch users had the cheapest rates, with an annual expenditure of only $131 for the sample plan.

Canadians pay more for cellphone time because there's only three major service providers in Canada: Bell, Rogers and Telus. Those top-three wireless providers control most of the other 25 brands. Indeed the entire wireless telecommunication industry in Canada is controlled by this oligopoly.

CRTC Policies Allow Rate Abuse

Thank the Canadian Radio-television Telecommunications Commission (CRTC) for their lack of regulations that have permitted this to happen. Their policies restrict foreign investment and yet allow freewheeling - the big three players can set the prices anyway they like. And, until recently, spectrum radio waves haven't been auctioned off to new entrants. But change is coming - it has to come because the secret is out of the bag. Canadians are looking around at the rest of the world and wondering why they pay so much money.

Remember the last two companies that threatened this oligopoly? Fido and Clearnet both became puppets of the big providers (Rogers bought Fido and Telus purchased Clearnet) and now offer only diluted discounts that realize only a fraction of the potential savings.

Industry Canada and the CRTC are the joint governing bodies in Canada and both agencies are under constant pressure from lobbyists to keep the status quo and preserve their markets, so change has to come from the outside and take everyone by surprise. Change has to come online.

MyCellMyTerms to Change Cellular Industry?

MyCellMyTerms.com could be the catalyst for change.

A lot of people in the wireless industry are talking about this small Internet start-up with big plans to revolutionize the way Canadians buy their rate plans, and dramatically change the way people acquire cellphone services; instead of customers going to the carriers, they get the carriers to compete for the customer's business.

MyCellMyTerms.com is an independent Web site that brokers the best cellphone deals between customers, businesses and the wireless industry. Customers are empowered to negotiate their own terms using a guided online portal. You create a proposal and they shop it to all the different carriers in Canada so you get the best deal.

Paul Peic, Kye Husbands, Eswar Nabhan and Yale Holder believe that once Canadians begin to use their service to renegotiate their plans, amazing things will happen to all rate plans across the entire wireless landscape.

Keep an eye out for MyCellMyTerms.com on Dragons' Den. Episode airs October 21 at 8pm on CBC.