I hate replying to my own posts.
But there is an election on, and reigning in the costs of cell phones is championed by at least one party. And likely a talking point for any candidate of any stripe that you talk to.
So,
Take it for given that the cost to have a customer is ~$22/month. Baseline monthly minimum account maintenance fee, whether or not they use any consumable service. Enbridge/Union Gas and Hydro One are comparable examples in my own space. Corporate, Customer Support, Billing, Lawyers and Lobbyists.
Then lets say you can get $480 credit towards a phone of your choice. Not unreasonable. $20 a month in a 2 year (24 month) contract. Lots of people absolutely could not afford a smart phone if it wasn't financed by the service provider. And having a phone and data is close to if not already an essential service.
So we are up to $40-45 a month - and you haven't even used a consumable service.
Even the BYOD plans seem to include a cost allowance so the provider can offer the customer a phone upgrade at some future point. I haven't been a FIDO customer for a year and have already once been been offered a $0 phone.
Then add data. Maybe a little - I get by with 4Gb. My wife has a BELL phone with 10Gb and a FIDO phone with 10Gb and uses almost everything on both every month. So add some $$. Towers and infrastructure, site leases, network engineers, contractors, maintenance, upgrades, expansion.
It all adds up.
Phone costs are going up faster than inflation it seems. New phones = new technology = higher cost allowance cost. Unless they cap the subsidy and ask people to pay more up front for a phone. Which only forces people to keep older phones and lose the edge of the current technology. Like bringing a knife to a gunfight.
But I have three phones side by side. A BELL phone that has only 3G service. A TELUS phone that isn't even network supported by TELUS in these parts, they contract out network carriage to BELL so if you have TELUS you get what BELL offers - 3G. And my FIDO phone with 4G LTE most times, sometimes only 4G. And the providers are gearing up to roll out 5G. Not provide at least 4G to everyone everywhere first. I have roamed a number of times recently off FIDO and been denied anything but voice calling on the -EXT networks that auto-connect to here in my patch of Ontario. Little yellow triangle = bad news.
And it seems everyone wants 5G = smart homes, smart phones, smart consumers, smart economy. That is going to cost a fair chunk to roll out by each and every service provider.
Can they cap cell phone rates? High Tech devices, High Tech Networks, High Tech Workers .
In my world, "TANSTAAFL" -R. Heinlein
There will be unintended consequences. The only question is how many will will suffer as a result. And who will survive. Anyone want to draw the first rock?
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