Canadians subscribe to black market deals for cheaper wireless plans

Canadians are among the world’s top payers for cellular services, so it is no wonder that many looking for cheaper recharge rates are turning to wireless ‘black market’ deals. A report by CBC reveals that Canadians living outside Manitoba or Saskatchewan can sign up for a wireless plan on Kijiji , an online classified advertisement network, for less than $52.75 with voice and text and 5GB data.

According to the report, users are posting offers of cheaper monthly plans for a one-time-only service fee. “Tony”, whose ad is based in Toronto, has posted offers of a Koodo monthly plan with unlimited nationwide calling and 5GB data for only $50.64, on top of a $100 charge once the service starts working.. While this rate is normally available in Manitoba and Saskatchewan, the rates for similar plans found in other parts of Canada typically cost $94.95.

According to CBC , Tony has been using internal tools, such as promo codes, to provide his ‘customers’ with better wireless deals. On being interviewed, he asserted that although he doesn’t subscribe to illegal means, such as changing people’s addresses to avail cheaper rates, he acknowledges that his actions could be seen as fraudulent.. However, he blames the telephone companies for overcharging customers, telling CBC , "But [cellphone companies] are screwing us over too. They’re stealing money from us because it shouldn't be this expensive."

Freelance technology journalist Peter Nowak, who first published a story about the practice on his blog Alphabeatic, said that the emerging black market promising to provide better deals have messed up wireless pricing in Canada. “The pricing between the Prairies and the rest of Canada is just out of whack," he said.

Meanwhile, Canadians living outside Manitoba and Saskatchewan have been largely affected by the high price difference, which has led to animated discussions on forums like Reddit and Red Flag Deals.They believe that paying higher for the same plan is sheer injustice.

Gerry Wall, president of Ottawa-based Wall Communications, a company that studies cellphone plans for the CRTC, echoed similar concerns, indicating that telephone companies like Telus or rogers are not taking any measures to target people like Tony or their customers. He claimed that while access to the black market wouldn’t affect the Canadian market, which has 28 million wireless subscribers, people would begin looking for cheaper plans in near future.

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