Canadian Telecom Service Prices Record Biggest Jump Since 1983

by Istvan Fekete on September 24, 2014

The Canadian telecom industry landscape has changed a lot during the past 30 years: the government has been vocal about its wireless policy to bring more choice, better service, and lower monthly costs to average Canadians. But there seems to be a discrepancy between the government’s goals and statements, and reality: after five long years, the weaker players have been knocked out of the game, and we’ve seen the biggest jump in the cost of mobile and landline communication since 1983.

2014 kicked off with some great news for Canadian wireless subscribers  . . . and the government: when purchasing network licences in other areas than Québec, Videotron expressed its goal to become a national player. As a result, Industry Minister James Moore said that it was time for skeptics to start thinking positively.

Another important move was the new Wireless Code, which eliminated the legacy three-year contracts and forced carriers to apply two-year contracts like everyone else in the wireless industry worldwide.

This is all great news, and we were glad to see that we were finally seeing the results of years of effort to achieve a competitive market. But then the numbers broke the spell of better, cheaper wireless services: the incumbents announced higher upfront costs for subsidized hardware, and finally increased the price of monthly plans by $5.

Beyond the above, there is Statistics Canada, which helps us to view the telecom industry as a whole, and the recent stats aren’t positive at all. According to their data, the cost of mobile and landline communications climbed 7.6% in August compared to a year previously. That’s more than three times general inflation.

This was the biggest price hike since March 1983, the same year Motorola debuted the first commercially available mobile phone, and the life book was introduced.

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Written by: Istvan Fekete. Follow by: RSS, Twitter, Facebook, or YouTube.

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