Prices for telecom services continue to decline

Annual government study shows prices for most wireless and home Internet services declined in 2023

OTTAWA, ON, April 30, 2024 /CNW/ - Canadians deserve affordable and reliable telecommunications services. That's why the government has introduced policies that promote competition and directed the Canadian Radio-television and Telecommunications Commission (CRTC) to focus on competition, affordability and consumer rights.

Today, the Honourable François-Philippe Champagne, Minister of Innovation, Science and Industry, announced the publication of the 2023 Price Comparison Study of Telecom Services, an annual report that tracks the prices for wireless and home Internet services.

The report shows that wireless prices have declined an average of 18.2% for data plans in 2023. This is consistent with the annual 18.6% price decline reported by Statistics Canada (Monthly change in the cellular services price index) for the same time period.

For home Internet, the report found prices decreased across all service plans in 2023. There were significant decreases on plans up to 100 Mbps, including decreases of 8.6% for plans offering the universal access target of 50 Mbps. These results are consistent with data reported by Statistics Canada (Monthly change in the Internet access services price index), which shows an annual decline of 5.9%.

This goes hand in hand with recently announced Budget 2024 measures, including amending the Telecommunications Act to better allow Canadians to renew or switch between home Internet, home phone and cell phone plans to find better deals. The government will continue fighting for fairer prices, increased transparency and more flexibility in the telecommunications sector.

"More competition is the key to making telecommunications services more affordable for Canadians. This year's price comparison study shows our approach is working. Our government's policy direction to the CRTC to focus on competition, affordability and consumer rights is clearly yielding results. Coupled with new measures proposed in Budget 2024, we will continue to advance policies that improve competition and promote better prices for Canadian consumers while giving them more power when it comes to telecom services."
? The Honourable François-Philippe Champagne, Minister of Innovation, Science and Industry

• The 2023 study is the 16th edition of an annual study commissioned by Innovation, Science and Economic Development Canada to examine the pricing of telecom services.
• The study provides a detailed price analysis of telecom services in Canada, both regionally and relative to G7 peer countries and Australia.
• Since the Rogers-Shaw and Quebecor-Freedom transactions were approved (between March 2023 and March 2024), wireless prices have declined by 26%, as shown by Statistics Canada's Cellular Services Index.
• In December 2023, 20 gigabyte plans were widely available for prices in the range of $30 to $40. This is a dramatic decline compared to 2022, when these plans were being sold for an average of $73.
• The report found that Canadian wireless prices are becoming more competitive internationally compared to our G7 and Australia peers, with prices in Japan and the USA consistently higher than in Canada. Customers out of contract and dissatisfied with their current providers should consider switching to take advantage of the improved competition. ISED's Compare mobile phone and Internet plans web page can help connect Canadians with websites that compare mobile and Internet service providers' prices, plans and coverage areas.
• On February 13, 2023, the government issued a policy direction to the CRTC to put in place new rules to improve competition and support consumers, leading to lower prices and better telecommunications services for Canadians.

• 2023 Price Comparison Study of Telecom Services
• More affordable telecom services
• Policy direction to the CRTC

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SOURCE Innovation, Science and Economic Development Canada