A new report published by think-tank The Montreal Economic Institute, commissioned by the federal government and published by Nordicity, has concluded Canada’s wireless prices are some of the highest in the world, but these high prices are worth it because of quality of services, details the 105-page report.
Martin Masse, Senior Writer and Editor at the MEI and author of the report, says in a press release “It’s true that consumers pay more every year for their telecommunications services,” adding “But this is because they are switching to higher quality services and buying more of them, not because prices keep going up. The data show that the prices of most telecom services have actually been going down in constant dollars for years.”
The report compared wireless prices in Canada with the U.K., Germany, Italy, France, Japan, the U.S. and Australia. Only Rogers, Telus and Bell were included, but not the flanker brands of the latter incumbents, nor smaller players in other countries, which usually offer cheaper prices.
When it comes to three levels of mobile wireless data compared, Canada ranks the highest when it comes to 2GB to 5GB, while ranking second when it comes to data buckets in the 5GB-10GB and 10GB or more range, according to the study.
“All consumers don’t pay, and don’t have to pay, the highest prices,” said Masse. “You have choice.”
Mass continues to explain, “Basically, Canadians are paying for a Lexus, not a Yaris,” noting “There is at least as much competition in Canada as anywhere else, and rates correspond to the quality services that Canadians demand and obtain. This is what emerges from a detailed analysis of relevant factors as opposed to a simplistic comparison of a few prices.”
Laura Tribe, executive director of consumer advocacy group Open Media, Laura Tribe, disagreed, as she told CBC News, “Not everyone needs an elite product,” adding “We have expensive; we don’t have affordable.”
Masse told Rogers-owned publication News1130, “If you go from a regular cellphone to an iPhone 8, obviously the regular cellphone doesn’t have a data plan and it’s very cheap. The wireless plan for a smartphone is much more expensive but you get many more services.”
He went on to say “This is the problem when you just compare raw numbers without looking at what you pay for. In Canada have one of the best networks in the world, we have the fastest speeds and our companies are among the ones that invest the most in the advanced technologies,” noted Masse.
As for wireless companies in Europe offering lower prices compared to Canada? “They have lower prices but they don’t invest much, their companies are not really profitable, and they are still trying to recoup their investments from older technologies,” concludes Masse.
Last week, Finland-based agency Rewheel released a report which noted Canadian wireless pricing is some of the highest in the developed world.
What do you think? Is it worth it paying more for a high quality network? Also–what’s wrong with a Yaris?
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But it’s alao cheaper in the US, where it’s not unaffordable to get an unlimited data plan.
Hahahahahahahahahahah ok. This coming from a bunch of rich folks.
Prices are cheaper in the UK and US. Quality is excellent. I’m not buying this bullshit.
I agree with you that this “report” from MEI is complete crap, but I wouldn’t go so far as to say quality is excellent, particularly in the US. Quality from AT&T is notoriously bad and Verizon is not much better.
That being said, monopoly pricing is a joke and Canadians continue to suffer because of it.
Sorry, I’m calling BS on this one. Also, what about the vast regional dispartity…Atlantic Canada is getting the shaft, while some other provinces like Quebec get alll the sweet deals
I would rather pay for a Yaris.
Right? Nobody NEEDS a Lexus over a Yaris. It is purely a luxury item for people with money to burn. The average Canadian who is struggling to pay bills would actually much prefer a reasonably priced car than some superfluous luxury car that is going to cost yet another fortune to maintain. These people are so out of touch.
I assume you’re expressing your displeasure towards people driving luxury cars, and not the service providers who charge top dollars, the premise of this article.
The truth appears in the reply to the question as to why European prices are much fairer – “their companies are not really profitable”. Yeah, they’re merely reasonably profitable. Heaven forbid they don’t make enough money to put their names all over sports stadiums. Oh wait, they do that too. I guess they have fair prices AND the companies make a good profit. Therefore the report is BS. QED
Not just Europe but Asia despite having more people and areas heavily saturated yet their connectivity is fantastic. Typically 5 bars is the norm even in ridiculously congested areas.
Honestly. The money doesn’t go back into the network. It goes into corporate pockets and bonuses. If Canada can learn one thing from the USA is happy customers are the willing to pay customers. In Canada’s sense, we have to pay this much because we don’t have a choice or revert back to barbaians with no phone plan at all. Sometimes I feel like I would save so much money on data overages if I just move to the USA. Let’s get real, out of all the first world countries, our network makes us look bad for the price we pay. We are just slandering our Canadian name. UK Japan Usa South Korea Hong Kong every country in Europe in my opinion are better and cheaper. We need to protest real compition. I love it when all the companies come together to give you the same deal. I have the 10GB for $60 plan and that usually means I have 311MB a day for 31 day period. Is that really enough? Google searches, iMessage pictures sent back and forth. 9GAG Reddit. News. Maybe one video. It’s easy to go over so I use another 6GB if not more including Fido databytes. My friends all over the USA make fun of me cause they all use over 40GB-100GB on their 4G or lte network and it’s the worst. I’m just saying it’s 2018. Live streaming and YouTube csn devastate 300MB easily. There is WIFI almost everywhere but it isn’t to be honest. Walmart bestbuy some malls small shops they all don’t or have really bad wifi. This is Canada today and it needs improvement.
Google searches, iMessage pictures, 9gag, Reddit and news hardly use any data; definitely less than 1GB per month. The only way you are going to get close to even 2GB let alone “40-100GB” is by streaming audio and video files, or downloading large files like app and software updates, or backups. I agree with the rest of what you said but there is no way you are going to go over 10GB per month streaming “one video” per day as you said. Perhaps you should take a look at your iOS cellular data settings and see what is really eating up so much data.
I do monitor my usage with a third party app and iOS and you Snapchat alone uses 2.5 GB alone per month with few or little snaps. All the apps just eat data. You must not be a heavy user. Because if you ever watched a live stream before depending on the app, you know one hour uses minimum of 500mb+
Right, but that’s not what you said. You stated you were using over 16GB/month from “Google searches, iMessage pictures sent back and forth. 9GAG Reddit. News. Maybe one video”. I am just trying to point out that that kind of usage does not equal up to anywhere near that kind of data usage, so you obviously have apps that are using tons of data outside your knowledge. Now you are stating that you actually stream hours on end of live streaming video and over 2.5GB per month of video from snapchat alone. That makes much more sense. But you were misrepresenting the types of activities that would use that much data. I don’t disagree with your point, but when you misrepresent the situation like that it just weakens your argument and implies that you are a novice user who doesn’t even know that emails, google searches, reddit, news articles etc literally use so little data as to be negligible and not even worth mentioning.
If you want to state that like to stream gigabytes per month of video on snapchat and insta, and stream hours upon hours of live video, all on cellular, so you need 15GB+ of data per month, that would be perfectly reasonable, so just say that. No need to pretend that you are using so much data just from “google searches and reddit 😉
How’s side are you on? Certainly not the consumers. People who send media, search for media, have many emails, and do most of their activities on their mobile device (not including tethering) chew up a lot of data. Just because you don’t (which I don’t believe unless you use with wifi) doesn’t mean most people don’t. We use and need more not less.
Additionally, carrier’s LTE networks are becoming overly saturated where speeds and signals are poor especially if using an iPhone which has inferior radio chips. Most people have to use 3G instead because of stronger signal and less congested.
I’m not on anyone’s side. I posted b/c OP stated that they use over 16GB/month just from “Google searches, iMessage pictures sent back and forth. 9GAG Reddit. News. Maybe one video”.
My point is that there is no way that google searches, iMessage, 9gag, reddit and news plus “maybe one video” per day uses up that much data, so clearly there must be some other activity they are doing that is using up so much data. That’s why I suggested they use the iOS data feature to see on an *app by app* basis which apps are actually using all that data.
We now learn from the OP that they are also streaming 2.5GB/month of snapchat video (perhaps instagram too) and streaming hours on end of live video? So the “mystery” is solved as to what is using up all that data. That’s totally fine and reasonable, OP just mischaracterized their usage patterns (for whatever reason)
But I don’t need a Lexus…
How can they keep saying it’s “a much better quality of service/network” and then cite no examples of how so. I don’t think it’s that different or better???
Just because they say that it is normal, doesn’t mean anyone should believe them. this study was funded by the government, so in all reality, it is political. they want you to feel good, even if they know you don’t…
Whenever a study like this comes out, two questions should come to mind:
1) Who is saying this, and do they have an agenda?
2) Who benefits?
#2 is easy, we know that the Big 3 will benefit from reports like this. But question 1 is a bit more interesting.
The Montreal Economic Institute is a far-right wing think tank. They call themselves “non-partisan,” but in 2016 they hired Stephen Harper’s former finance minister Joe Oliver. They receive all of their funding from corporations. They’re basically Quebec’s version of the Fraser Institute. They also receive funding from the Koch brothers (https://www.vancouverobserver.com/politics/charitable-fraser-institute-received-43-million-foreign-funding-2000).
This doesn’t necessarily mean they’re wrong, but it certainly undermines the notion that these guys did an objective “study.” They are much closer to paid shills than an objective, “non-partisan” organization.
When I first read the headline, I thought to myself, “Says who… the Fraser Institute?” Not at all surprised to hear it’s an organization so clearly partisan.
There you go. Some single minded people paid by those who have an interest justifying the insanely high prices.
Paying for a Lexus not a Yaris.. lmao! This guy must be out of his mind if he thinks our LTE is better!! GOOGLE “OPEN SIGNAL STATE OF LTE” and check the February 2018 results. When we talk about the most reliable luxury vehicle, it’s Lexus and so you’re paying for a Lexus. Do we have the fastest and most extended LTE networks, it’s a simple no! And talking about “choice”, I’m sorry but there isn’t any competition really, if we take out all parent companies we’re all back to the big 3 basically. They make you think you have a choice but you don’t, total control of the market……
The issue in Canada is that you go to the dealership and he only offers you a Lexus. I don’t give a damn that I can get a Yaris in Europe, I can’t get it here. And on top of that I should be happy to be forced to purchase something I don’t need. Give me a break…
At last, Iève used Yaris in Europe for up to 6 weeks in a row for work & leisure, doing video conferencing, remote work all on the Yaris networks they have: it was more than enough for my needs. So can we get a Yaris now? No? Don’t ask then why we don’t like the dealer.
I would like a concrete example of what makes our networks superior. I’m willing to believe that, but what are the things that makes that sentence more than words?
Really the problem comes down to it is great to have great services when that’s what you’re looking for. The problem is there are few if any low cost services for us to choose from. If the big three were somehow stoped from all this price matching maybe we would see some options that meet more Canadians needs.
‘Paying for a Lexus’? I live 20kms away from the heart of the capital of BC, yet somehow there is no cell service within 5 kms in any direction of my home. Is this the ‘high quality network’ that they’re bragging about?
I can’t comment on the other data, but the USA data seems very wrong. Wireless prices in America are more than affordable. This must be using statistics from 2012 or something, because in 2018, there are 4 main national carriers (AT&T, Verizon, T-Mobile, Sprint), and 2 main regional carriers (US Cellular, C-Spire).
This ‘research’ only tells part of the story. It is true that the typical American SINGLE LINE cell plan costs about $70 USD (Or $93 CAD, which I assume what this chart uses).
However, this single line has loads of features. For instance, on T-Mobile, it’s $70, with no taxes or fees, with included text and data roaming in almost every country with low calling rates (Free calling in north america), netflix, hotspot, and even data in airplanes.
This is more than anything in Canada offers. Did I mention no carrier in the United States even has contracts or ETFs anymore?
That is just the postpaid side of things for single lines.
Prepaid in America is as competitive as ever. You can get a single line for $45 with less features, but still unlimited talk text and data and on a good network on Simple Mobile, or $50 on Cricket and Metro.
What about family plans? Good prices.
You can get a family of 4 on Unlimited everything for just $25 per line on 3 major prepaid networks (A lot more on Verizon, but who consciously chooses verizon nowadays anyway?), or if you want to go post paid, the prices for a family of 4 range between $100 on Sprint to $160 on AT&T and Verizon, or $160 on T-Mobile (No taxes or fees).
This research does not tell the whole story, at least for the American side of things.
It is price fixing at it’s best. We need more competition. It is very fissible at the moment to provide customers with 1GB per day data at high speeds. It is very fissbile to provied customers with unlimited Canada and USA calling.
And more bs! The States has as good and better networks than us, and yet they have $50 unlimited data plans.. seriously this clown is out of touch with reality.. or paid off by the big 3..
Also many European countries and various places over seas have as good and better coverage than Canada.. he needs to do better research..
They almost got it right. It should read ” You’re paying for a Lexus but get a Yaris”.
This is not true, misguided article. Disappointed with you guys.