Zhongnanhai

July 25, 2007

China makes Canada’s cellphone coverage look like the third world

I am hoping, very soon, to be free of this weight which is the GFW. Thanks to the help of Dan over at China Law Blog, I may have found a solution to my hosting woes, which should make this site much more accessible in China. If anybody else wants to put their blog on the right side of the GFW, Dan has some ideas and can recommend some good blog hosts. (I’d link to his email and blog, but alas, that vital function of blogging is unavailable to me at the moment. My sincere apologies.)

There were a couple of things I wanted to discuss this week, but with my inability to link to articles and other poignant facts, I have declined until the new site is up and running. That being said, I thought I’d post my latest missive in the Times Colonist in Canada. As I’m not an American, I can’t comment on what mobile phone rates are like in the United States. But I think the article will leave no doubt about how I feel regarding Canada’s shoddy plans. I received quite a few comments on this article on Facebook (everybody is on there, right?) so I clearly touched a nerve with Canadians.

Let me know what you think.

Chinese progress belies stereotypes; Ease of cellphone access makes Canada look like the Third World
Times Colonist (Victoria)
Sunday, July 22, 2007
Page: C2
Section: Comment
Byline: Cam MacMurchy
Column: Cam MacMurchy
Dateline: BEIJING, China
Source: Special to Times Colonist

BEIJING, China - A recent survey released here showed that most foreigners — before they visit China — hold deep stereotypes about what life is like here, based on Chinese movies that make it to North America.

Many of those surveyed said that when they think about China, they think about kung fu, the ability to fly through the air and above all poor, backward farmers in straw hats tilling the land.

The stereotype is badly outdated, as China’s cities are now dotted with Starbucks, wi-fi cafes and glistening skyscrapers. BMWs wind through high-end entertainment districts, and businessmen in Armani suits chat loudly into their micro-sized mobile phones.

In fact, nearly 500 million Chinese use cellphones, making it the largest mobile phone market in the world.

Many people here have never used a home phone, because mobile phone rates are cheap and much more convenient.

And with the largest mobile phone market in the world continuing to grow exponentially, Research in Motion couldn’t resist trying to crack the market with its ubiquitous Blackberry.

But there’s a big difference between using a Blackberry in China and in Canada — price.

And our prohibitive pricing schemes and cumbersome customer services are holding Canada back from other technologically advanced countries like — dare I say it — China.

Let’s say you arrive in Beijing for a six-month study or work term and you need a mobile phone. First, you’d walk into a mobile phone store, which are found on almost every block, and select the phone that’s right for you.

This could range from a low-end, three-year-old Motorola right up to the newest Blackberry, Palm or Windows Mobile smartphone. Nearly all of the phones are “unlocked,” meaning you can use them with whatever cellphone carrier you choose, and change whenever you like.

Then you’d pop into a 7-Eleven or another convenience store (or even a road-side vendor) and buy a SIM card (your phone number).

This will cost, on average, about $4.50 and include more than an hour of talk time. Pop the SIM card into your new phone and you instantly have a fully functional cellphone. No activation required, no paperwork, no credit check, no signature, nothing.

When you run out of airtime, you can buy $15 recharge cards at nearly every street-level newspaper vendor or convenience store across the country. Simple.

Of course, there are other options for heavy users, such as monthly plans. I once used a monthly plan in Shanghai that included plenty of talk-time and two gigabytes of data transfer for $75 a month. No credit check required. You prepay each month, and if you don’t, you’re cut off. Your monthly bill arrives by e-mail. Again, it’s surprisingly simple, efficient and even environmentally friendly. The rate plans are cheap; the payment process is easy. So why can’t this be done in Canada?

“There’s no doubt that wireless data pricing is higher in Canada,” Andrew McLaughlin, the director of global public policy for Google, said recently in the Financial Post. Google now offers a number of mobile services such as Google Maps, mobile Gmail, and mobile searching — excellent services that many Canadians opt not to use because of Canada’s high data surcharges. RIM is leading the way in asking the Canadian government to pressure the big three mobile-phone carriers, Telus, Bell, and Rogers, to lower their prices and give entry-level consumers access to the market.

Rogers currently offers customers a 200-megabyte monthly plan for $100. That steep fee doesn’t even include talking minutes, and assuming you want to use your phone to make phone calls, you must pay extra for that. The data plan alone amounts to 50 cents per megabyte. The plan in Shanghai I mentioned earlier amounted to less than four cents per megabyte. And, for good measure, China Mobile threw in 2,000 minutes of talk time.

Why the discrepancy? As the Financial Post story continued, it’s not only China and other Asian countries with cheaper cellphone rates; Europe also offers complete data and voice plans for a fraction of what’s being charged in Canada. “They’ve got these entry-level service plans that they’re putting out there that you’re not seeing here in Canada,” said Don Morrison, RIM’s chief operating officer.

Last Christmas I arrived in Vancouver from Hong Kong and needed a pay-as-you-go phone number for the few weeks I’d be home.

I had to sign up at a Rogers counter, provide all kinds of personal details, fill out forms, sign some additional paperwork and then wait while the staff “activated” my phone. As the activation system was down, I had to wait more than 25 minutes.

All of this cost me $50 — before I had even purchased any talk or data time. When I finally bought a card, it took several steps through an automated service before my phone was usable. This entire process in China would take two minutes at a 7-11, and cost a fraction of what it does in Canada.

Cellphone service is only one area where China has made things much more consumer-friendly. Far from being a country filled with straw-hat-wearing farmers, China has, perhaps, even zoomed past Canada in the technology field.

Sadly, it is we who are backward.






















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