Canadians still paying more for large data plans: report

Cellphone service is getting cheaper for Canadians who want basic plans, but prices for larger wireless data packages remain high compared to other G7 countries, according to the government’s 10th annual international price comparison report.

The report, commissioned by Innovation, Science and Economic Development Canada and prepared by Nordicity Group Ltd., was released Tuesday and compares wireless and internet prices across different service levels in Canada, the U.S., Germany, Japan, the U.K., France, Italy and Australia.

Among the findings, the report noted that within Canada, prices were lower in regions where there are four strong competitors, such as Quebec, Saskatchewan and Manitoba.

That echoed comments from the Competition Bureau, which in February stated that “lower prices are caused by the presence of a strong regional competitor who can disrupt the effects of co-ordination among Bell, Telus and Rogers.”

The report ranked wireless prices across six different service levels, ranging from 150 minutes at the low end to family plans with three lines, 10 gigabytes of data and unlimited talk and text at the high end.

It found Canadians paid the most for three mid-tohigh levels, second-most for the lowest and highest service tiers, and third for the second-lowest tier.

Prices in the U.S., Germany and Japan were high in some instances, while wireless plans were cheaper across the board in the U.K., France, Italy and Australia.

“We are pleased to see that prices for cellphone plans for many Canadians have declined,” ISED Minister Navdeep Bains said in a statement. “At the same time, we have heard concerns from many Canadians who said that prices are still too high. We remain focused on providing high-quality, affordable telecommunications services to all Canadians.”

Canada’s stand-alone mobile data prices were among the highest as well. For 2 to 5 GB of data, Canadians paid the most at $43.01 per month as compared to a low of $11.73 in Australia.

For more than 10 GB of data, Canada held the No. 2 spot at $82.28 per month compared to a low of $28.48 in the U.K. and a high of $92.46 in the U.S.

Over the past two years, Bains has repeated calls for more affordable telecommunications services, especially for lower-income Canadians. This month, he lauded Bell for launching a new brand, Lucky Mobile, to compete on the low end.

The wireless industry typically criticizes the Nordicity reports for not including flanker brands such as Koodo, Fido or Virgin in the aggregate prices. Flanker brands’ prices are about 19-per-cent lower than incumbents overall, according to the report, so the industry believes excluding them skews results higher.

Industry players also contend prices are higher in Canada due to the high investments required to build networks across such a vast geography. Players often also note wireless speeds are far superior in Canada than in many other countries.

“While price comparison studies only show part of the picture, Canadians are getting good value with the price for many service plans continuing to decrease,” said Eric Smith at the Canadian Wireless Telecommunications Association.

Spokespeople for Bell, Rogers and Telus pointed to their flanker brands such as Lucky Mobile, Chatr and Public Mobile as providing value across all budgets.

Rogers spokeswoman Sarah Schmidt noted “(The study) also treats Canada’s networks the same as those in Europe, even though we have better reliability and speed and eight times fewer people connected per square kilometre,” she said.

Telus spokesman Richard Gilhooley also pointed out superior quality, noting that Telus’ network is twice as fast as most in the U.S.

“These benefits are a direct result of the billions of dollars we invest year-afteryear.”