Canada gets a zero from the OECD on telecom. Good.


When it comes to wireless termination costs from abroad, Canada is tops.

According to a new OECD report Canada has the lowest international call termination rates in the world: zero. This is the lowest in the OECD with the US in short succession with a rate of $.0007 (why do they even bother?)

Throughout most of the world, incoming wireless calls are free but the reality is that the cost is passed along to the calling party. For this reason it is possible to make a phone call to a landline in Europe for pennies a minute, but a call to a mobile phone is much more expensive. For example, a Skype call to the U.K is 1.9 cents per minutes vs. 5.9 cents for a mobile. It used to be even more expensive and the costs are coming down significantly, but the fact remains that calls to a mobile cost 3x more than calls to a landline.

This discrepancy in rates creates billing nightmares that are hard for North Americans to understand. Imagine having to pay close attention to the number you’re calling lest you get charged significantly more than your regular calls. In comparison, Canadians can just pick up the phone and call it and since most phone plans already include unlimited long distance it’s less of a concern.

For once, Canada can rightfully set the example for the rest of the world to follow.

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Andrew Seipp

Principal Consultant at Telclarity
Andrew Seipp is the principal consultant for Telclarity. His company helps small to enterprise clients navigate the world of telecom and find significant savings. Having worked in the telecom industry for nearly a decade he brings unparalleled insider knowledge to the table.

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