The federal government claims that they have cut the cost of Canadian cellphone bills in half since 2019 by increasing competition. However, many consumers are skeptical of this claim, as they say they are not experiencing any decrease in their bills. Prime Minister Justin Trudeau announced plans to eliminate junk fees on phone bills, allowing consumers to switch to cheaper plans without added charges. This announcement was part of the federal budget, which mentioned Statistics Canada data showing a 50% decline in cellphone plan costs since 2018.
Industry experts are divided on how to interpret the StatCan data, with some seeing it as evidence of increased competition leading to better deals, such as larger data packages or international roaming perks. On the other hand, critics argue that while the cost per gigabyte of data may be decreasing, consumers may be pressured to purchase more data than they actually need. This could be due to cell services being bundled with other services like TV or internet, leading to additional expenses.
Some point to the average revenue per user reported by cellphone companies as a more telling metric, which has increased over the years. This suggests that while there may be some cost savings in terms of data prices, consumers are still spending more on wireless services than before. Industry Minister François-Philippe Champagne has expressed dissatisfaction with the lack of competition in the telecom industry, urging carriers to prioritize customers over profits.
Critics also question the government’s commitment to reducing telecommunication costs in the future, particularly the proposal to prohibit carriers from charging extra fees for switching providers. However, there are already protections in place through the Wireless Code, established by the CRTC in 2013. This code prohibits service providers from charging customers any fees or penalties for canceling a contract before its end, except for potential early cancellation fees related to device financing agreements.
While the government’s budget proposal may seem redundant given the existing protections in the Wireless Code, officials suggest that the changes may complement or reinforce these protections. The Department of Finance plans to work with the CRTC to implement these changes following consultations on specific requirements. Despite the government’s efforts to reduce cellphone bills through increased competition and regulatory changes, consumers remain skeptical of any significant decreases in their monthly expenses.
