Telus says it can slash roaming rates by half – and still be profitable

If profit is the name of the game then Canadian telcos are surefire winners.

Following a report by the OECD that suggested Canadian telcos (Bell, Rogers, Telus) charge the world’s highest rates for out-of-country wireless data usage—double the global average—Telus has stepped forward and announced that it plans to slash its roaming rates by a whopping 50 percent in the near future.

But here’s where questions should be raised: Telus said that even though its slashing its rates in half, it will still profit from this service.

Okay, a business should profit—that’s obvious. But this means that beforehand, their profit margin was well over 50 percent. Do you have any idea how much your bread or your car would cost if bakers and auto manufacturers aimed for a 70-percent profit margin?

It’s almost as if Telus is bragging, “Look how much we can charge our customers and get away with it”—and then spin it into a positive PR move, something like “Look, a report came out that exposed us for crooks, but we’re so generous, we’ll bring our rates back down to earth.” The future is friendly my ass.

Just something to consider when next you roam.