Canadian Cellphone and Internet Prices Dropped in June: Report


According to the latest Statistics Canada report, while the overall inflation for the past twelve months was noted at 2.8%, telecom service prices saw a continuous decline.

Canadian consumers experienced a 14.7% reduction in cellular services year-over-year in June, following an 8.2% decline in May. Internet access services didn’t lag behind either with a 3.2% decrease in prices in June on a year-over-year basis, after recording a 1.0% increase in May.

The data was pointed out in an email from Nick Kyonka, Director of Marketing and Communications for the Canadian Telecommunications Association, which represents telecom giants. He drew attention to the latest Consumer Price Index report released by StatsCan.

On a month-over-month basis, the prices for internet access services fell 5.0%, marking the largest one-month decline since February 2019.

In May, cellular service prices saw a decline of 8.2%, with a further 7.6% decrease in June compared to May. Notably, over the last three years, cellular service prices have dropped by 33.3% said Kyonka in an email to iPhone in Canada on Wednesday.

According to the CTA (formerly CWTA) they see these developments as a positive sign for the Canadian telecommunications landscape and highlighted how the significant price reductions will impact consumers’ digital connectivity experience.

As for reasons why prices might be dropping? Gerry Wall, from Wall Communications, reports annually on Canadian phone and internet prices compared to the rest of the world. He told The Canadian Press, “Technology is allowing improvements in the use of spectrum, in the way that networks are run, in the efficiency of networks and so that’s probably a key cause of why prices are coming down.”

OpenMedia executive director, Laura Tribe, noted that while the June figures indicate progress, Canadian telecom prices are still reducing at a slower pace than in peer countries. She stated, “The average revenue per user is going up for these companies and their profits are still going up. So I think it’s indicative of the fact that it’s getting cheaper to provide cellphone services more than we’re getting a really great deal or the telecom companies are taking a hit.”

Are you seeing a drop in your wireless bills? We’re seeing telecoms offer more data, but prices for the fastest 5G plans have remained relatively the same.

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