Canadians Are Not Being Overcharged For Wireless Services, Study Reveals

While most Canadian consumers as well as the Federal Government agree that wireless carriers in the country are charging way too much for mobile services, a recent study published by The School of Public Policy that assesses the state of competition in wireless services in Canada, reveals that this is actually not the case. In fact, the Canadian consumers are demanding more from their carriers, for what they are paying, in terms of mobile services (via CNW).

Study

While maintaining that prices and the number of major carriers in Canada are not out of line with other similar international markets, the report notes that there is “no evidence that there is a competition problem in wireless in Canada. In fact, the opposite is the case”. The study further argues that governments’ efforts to use regulation to bring another carrier into Canada may be “misguided”.

“Efforts to create competition in the short run that increase the number of carriers will simply squeeze margins in the short run and likely will not be sustained in the long run as carriers exit and consolidate to reduce competition and restore margins consistent with profitability. While consumers might gain in the short run from lower prices, everyone is likely made worse off in the long run from the misallocation of spectrum, reduction in scale of carriers, and reduction in incentives to invest from such intervention.”

The report concludes by suggesting that the government should focus more on “policy measures that promote inter-network competition” instead of restricting incentives for investment by the ‘Big 3’ carriers and their access to spectrum.

“So, the bottom line is there is no evidence of excessive returns consistent with the exercise of market power. There’s not a lack of competition. If anything, returns are too low,”

“Technology runs through my veins...” | Follow me: @DrUsmanQ usman@iPhoneinCanada.ca

  • George Carlin

    Good joke.

  • Sandy Andrew Balde Baldwin

    I thought is was April 1st for a second.

  • Chrome262

    Love this “the Canadian consumers are demanding more from their carriers, for what they are paying, in terms of mobile services” well duh, why would that happen?

  • moma

    I pay 75/mth from Fido for Unltd. Canada Wide calling, text/picture/video messages. Visual voicemail, call display, call forwarding, and 6GB data. How in the world is that being gauged? Also, our networks are wonderful compared to even Verizon in the US. We actually have pretty competitive rates.

  • moma

    Ultimately I would love to pay 50 all in, and that’s where we are headed I think. But still…it isn’t as bad as people make it out to be.

  • The problem is that some of what you mentioned as part of your plan is clearly retention related – not something that they offer to everybody, much less new customers off the street.

    I have a similar plan, but had to fight to get it.

  • Erik Kappel

    “no evidence that there is a competition problem in wireless in Canada. In fact, the opposite is the case”

    For the love of christ. There is a clear oligopoly, and any noticeable competition happens in territories where the Big 3 don’t have all the control. Plus they have a way of continuously making the consumer “feel” mistreated. The “good for Canada” campaign was at best insulting to our intelligence. There are simple solutions to their issues. Stop colluding, allow each other to have plans that have different advantages, different pricing and most importantly, don’t offer the latest smartphones only available on plans with 500mb/1gb. You know full well that isn’t sufficient.

  • ipostic

    Spot on. If there was true competition in Canada the carriers wouldn’t all raise their monthly plans prices like they did over the last month or so. How in the world is it ok that our big 3 can talk to each other and say…hmm..government is pushing 2 year contract agreement on us? Let’s just raise our plans all together at the same time. Even with their Bring Your Own Device 10% discount the plans are still more expensive than they were 2-3 months ago.

  • wah_gee

    The better plans can only be offered by retentions. 🙁

  • moma

    Fido offers right now… To everyone…what I have but with 1 gig data for 65 bucks. Compared to Verizon or Att… That’s amazing. Not saying it’s perfect. But it isn’t the doomsday scenario we like to paint.

  • wah_gee

    I have your plan at $72, but my $10 credits run out in 2 months – end of my contract. It’s just that the data part is too small for new customers.

  • ticky13

    *cough* bullshit *cough*

  • fireeast

    4 or 5 years ago you could get 300 minutes, 500 texts, Fab 5 and 500 mb of data for $55 Dollars and you could add 6gb of data for $10. All plans today are a rip off. I just recently updated my plan and because they refused to grand father me in, I am stuck with 50 minutes but i do get unlimited text and 6gb of data (Blackberry promotion even though it use bells network) for $65

  • fireeast

    Sorry forgot to mention if I wasn’t buying a blackberry this identical plan would cost me $95 dollars in alberta while i could get it in sask/manitoba today for $65 becuase they have compitetion.

  • TheOnlyAdvantageToLiveInQuebec

    70$ on Verizon for unlimited everything and 4gb prepaid and they have a far better network.

    In the province of Quebec we have more competition, I have the exact same plan that you have, but with Koodo and for 45$ (40.50$ with BYOD). MB/SK have a 55$ plan with 5gb, it’s even better.

    So what I want to point out is that it could be better.

  • reformcanada

    Study funded by Bell, Telus & Rogers in 0.000001 font size.

  • Nick

    u mad bro? go complain about your car insurance or tv cable service.

  • Steve

    I’d like to know who paid for this study… My guess is the “big 3”

  • sam

    ahahah you pay to much XD I have the exact same thing for 53$ also with fido

  • Somedude

    You want to see an awsome plan from the big 3 I get via an employee offer (with a company plan not big 3)

    Unlimited data 20.00 per month
    Unlimited local calling 10.00 per month
    Unlimited ca long distance 5.00 per month
    Unlimited text 5.00 per month
    Call display voicemail free

    I think they cut the plan off at 10 Gb of data
    The device had to be purchased at full retail.

    So they should be able to do the same at retail for 50.00 per month as suggested above.

  • Anthony

    I have the exact same plan for 63

  • pure_ip5s

    This is worth re posting at the top… What a bunch of thieves..

  • pure_ip5s

    moma go f yourself!

  • pure_ip5s

    reformcanada
    • 2 days ago
    ?

    Study funded by Bell, Telus & Rogers in 0.000001 font size.6

    Reply

    Share ›

  • Beastman

    Who comes with these stats Canadians are not being over charged?…. If anything we are being robbed. Need more competition

  • Anon

    You are getting ripped and you don’t even know it. I have the same retention plan on Rogers for $45 a month, negotiated 2 years ago. Took me about 6-7 calls to get that deal, at aprox. 30-40 mins per call. Try getting that same deal now at that price, on a new contract, or heck even retention. Good luck, LOL.

  • moma

    That’s a great plan! Lucky you! My point isn’t about who’s got the best plans here, it’s that our plans that are available to us are not death sentences. I guess the point we are all making is that if a consumer really wants a great plan, than they’re out there.

  • moma

    Wow.

  • Anon

    A measly 1GB data amazing? Right… keep telling yourself that.

  • Anon

    You sound like a FIDO/Rogers employee doing damage control. Keep it up, I can’t help but laugh at your BS comments.

  • Alex Greene

    Key piece of information missing: who sponsored the study??? Were any of the big 3 involved? Has it been peer reviewed?

  • Thepasc

    When someone is replying to you by writing “U mad bro”, you don’t reply back (like you did)!
    YouTube posters are taking over…

  • Guest

    Does anyone any group that advocate for consumers in Canada. I am tired of being overcharged by Telecommunications companies, banks, credit card companies, stores, travel rewards programs such as Aeroplan, etc. We are getting much less for more in Canada. I do agree we have a great banking, and health care system, but nothing is free. We also pay more on taxes. Any advice?

  • ALINSER HOYOS

    Does anyone know of any group that advocates for consumers in Canada. I am tired of being overcharged by Telecommunication companies, banks, credit card companies, stores, travel rewards programs such as Aeroplan, etc. We are getting much less for more in Canada. I do agree we have a great banking, and health care system, but nothing is free. We also pay more on taxes. Any advice?