Perception of Wireless Cost and Plans

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June 18, 2024

As Statistics Canada Consumer Price Index (CPI) data showed last month, wireless prices fell 26.6% in the 12-month period that ended this April. Zoom out further and we see that wireless prices are down 32.5% over the past three years, and 49.5% over the past five years.

Cell service prices have essentially fallen by one-quarter over the past year, one-third over three years, and one-half over five years. (Internet access service prices are also down nearly 10% over the past year, but that’s a topic for another post.)

It’s no surprise consumers are starting to tout the benefits of falling prices.

In a new Canadian Telecommunications Association-commissioned poll released this morning, Abacus Data reports that 86% of Canadians who switched wireless plans over the past year said their new plan gives them better value.

Among those who switched, the poll found:

  • 63% said they were paying less while getting more or the same services under their new wireless plan than their previous one.
  • Another 17% said they were paying the same for additional services and features that weren’t a part of their previous plan, such as additional data, higher speeds, enhanced coverage, increased international calling and/or texting, or increased international roaming.

While the cost of most goods and services have increased over recent years, the telecom industry has played a key role combating rising prices. That’s why Statistics Canada has cited telephone services as a top-five leading downward contributor against inflation in each of the past 12 months.

At the same time, telecom operators have continued investing heavily in their networks, allowing them to expand their coverage and provide faster service speeds. In a new report we commissioned that was released yesterday, PwC noted that Canada’s infrastructure-based service providers invested $11.4 billion in capital investments to expand and enhance their networks in 2023. This amounts to a reinvestment rate that’s 42.6% more per subscriber, on average, than peer service providers in the U.S., Japan, Australia and Europe.

Through substantial investments and healthy competition, the Canadian telecom industry is lowering prices while consistently improving coverage, quality and speed. Canadian consumers are reaping the benefits of improved connectivity at lower prices.

To read the full report on the Abacus Data survey, titled Perception of Wireless Cost and Plans, follow the link here: https://abacusdata.ca/canadian-mobile-wireless-sector-providing-lower-prices-and-greater-value-to-canadians

To read the full PwC report, titled Driving Canada’s productivity: The impact of the telecom sector and its role in improving productivity, follow the link here: https://canadatelecoms.ca/wp-content/uploads/2024/06/Driving-Canadas-Productivity.pdf.