Canadians Pay 13% Less for Telecom Services Compared to Last Year, Study Finds

by Istvan Fekete on July 5, 2013

Canadians are paying less for telecom services — including voice, text, caller ID and voice mail — than last year, according to a study commissioned by Industry Canada and the CRTC. Prices have fallen roughly 13% on a year-over-year basis, the study reveals.

Wall Communications Inc., an Ottawa-based economics and research consulting company, has taken the Canadian, US, UK, French, Australian and Japanese telecom market under its loop and, after analyzing and comparing the cellphone bills wireless subscribers pay, found that Canadians aren’t paying the highest bills. The country’s telecom rates are in the mid-range, compared with the other surveyed countries.

Another noteworthy decrease — alongside the aforementioned mobile phone service prices — was noticed in the prices for mobile service packages that include data. The study found that Canadians’ bills are 5% lower in 2013 than last year.

“We have seen a decrease in mobile phone service prices since last year,” said Gerry Wall, president of Wall Communications Inc. “In the case of a typical basked of mobile phone services — including voice, text, call display and voicemail features — the decrease has been most pronounced falling by about 13%. Prices for mobile service packages including data decrease to a lesser percent, but are still about 5% lower relative to last year.” These decreases continue the general downward trend in Canadian mobile service prices found in previous year’ pricing studies conducted by Wall Communications.

The study also points out that the new wireless entrants continue to offer mobile wireless prices that are significantly lower than those of the incumbents. For instance, what they call Level 3 basket services, which includes high call volumes plus a full set of features, 300 texts and 1 GB of data usage per month, is 39% lower than those of the incumbents, a significant difference. When compared to international Level 3 service baskets, Canadians fall on the high side of the average for the group of surveyed countries.

The news comes shortly after a Nordicity and CWTA report found that Canadians are willing to pay more for wireless services. How does your wireless bill look? Is it lower than last year?

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Written by: Istvan Fekete. www.digitcom.ca. Follow TheTelecomBlog.com by: RSS, Twitter, Facebook, or YouTube.

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