A new study from Finland-based boutique management consultancy, Rewheel, research detailing the state of 4G wireless pricing for Q1 2018 shows Canada ranking at the bottom when compared to other nations in the developed world.
The report takes a look at how much 4G data can be purchased with the equivalent of 30 euros (about $46 CAD) in European Union and OECD markets for smartphone and data-only plans.
The first chart shows how many 4G gigabytes can be purchased for smartphone (April 2018 pricing) plans which also include 1,000 minutes and at least 3 Mbit/s download speeds for video, if you had 30 euros ($46 CAD).
As you can see below, Canada ranks near the tail end with only 2GB, with only Hungary, South Korea, Malta and Greece trailing behind us (get real if you think we’re going to get unlimited data plans):
Now here’s a chart showing Canada as dead last according to Rewheel’s research, when it comes to data-only mobile broadband plans:
According to Rewheel, “The country median gigabyte prices in Korea, Canada, United States, Germany and Japan continue to be a universe apart compared to the country median price (€0.8/GB) of the competitive 4-MNO French market,” adding “In Canada and the United States operators continue to charge exorbitant mobile broadband gigabyte prices.”
Rogers, Telus and Bell charge data overages of $70 per gigabyte. While our data overages continue to rise, EU28 and OECD median data charges keep declining, now at 0.84 euros and 1.1 euros respectively ($1.29 CAD and $1.69 CAD) per gigabyte.
According to University of Ottawa Law Professor, Michael Geist, who shared the study, he says:
In addition to outrageously expensive wireless data plans, Canadians also face huge overage charges (more than a billion dollars per year generated in the wireless overage cash grab) and steadily increasing roaming charges. Yet when it came to introducing greater resale competition, the CRTC rejected new measures that it admitted could result in some improvement to affordability.
Geist cites examples of how a Rogers smartphone plan in Ontario with 80GB of data costs $405 per month, while consumers in the UK can get 100 GB for a mere $46 CAD (30 euros).
He also noted if Bell subscriber wanted a 500GB mobile broadband plan for 30 euros ($46 CAD) like in Israel, it would cost $1500 CAD for 500GB from Bell ($50GB for $150 + $3/GB overages). Ouch.
Data isn’t getting any cheaper in Canada. Rogers, Telus and Bell recently submitted proposals for data-only, lower-cost wireless plans, which had prices starting at $25 for 400MB of data, which some Canadians called a “joke” in comments to the CRTC in the latter’s public consultation process.
What do you think about the state of wireless data pricing in Canada?
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Its robbery, I am not one to want the gov to step in and regulate things, but this is ridiculous. CRTC is stupid for not stepping in and stopping this
To justify the low caps, they constantly use data that shows that most subscribers don’t even use their full data allotment and therefore higher data caps aren’t desired by the market, but I can tell you that at least for me and those I share a family data plan with, we keep a decent margin from the cap precisely because of the significant overage charges. When we’re at 90% and there’s 2-5 days left in the cycle, it’s worth spending another $15 for 1GB to avoid the overage penalties.
It’s basic consumer psychology. Cost conscious consumers will be reluctant to use data if it’s constantly on their mind that they will get burned by high overage rates.
Also if consumers don’t even use their full allotment according to the carriers then it should be no issue at all for them to offer double the data or more data for the same price.
And the CRTC will use their own statistics to show that our pricing and data allowances are competitive in comparison to other countries.
I think it’s time the media do daily or weekly exposures on how nonsensical our government and it’s departments are.
So what is the difference… if you look the difference between car prices charged in the United States and Canada. And some these are built Canada… Canada is over charged on many different products and services and until some body in charge who has a back bone to mandate changes nothing will change
No car is produced in Canada LMFAO. Take GM for example parts are produced in China then shipped to Mexico for assembly then shipped to Canada or the USA for QA and final product assembly. Same thing happens with our cell phones, china, Taiwan, Korea is where parts are produced then shipped to a different country for assembly and QA Testing.
The difference with wireless providers in Canada compared to every other country is that other countries don’t get their pockets gouged for small data caps and overage charges.
Cool! Canada win !
Wow, Canadians are getting the big shaft.
In the US, there are no such thing as data overage charges. What you see is what you pay. Even when I’m at the end of my data plan, it still gives me data, just at slower speeds until the next billing cycle starts. No extra charge.
I understand capacity charging, but they need to increase the data caps. Like honestly. What if the government set 5GB as the minimum allowable data? Like theoretically.
I think populations (of people with and without cellphones already) are so much bigger in other countries that the cell companies deliberately try to preserve a certain average revenue per user to make sure they don’t bottom out the market. 🙁
Try to find a Canadian that hasn’t gotten screwed around by a cell phone carrier.
Highway robbery plain and simple.
Shame on our government that aproves this crap, ITS STRAIGHT UP A ROBBERY!!