According to Industry Minister François-Philippe Champagne, Canadians are still facing high costs for telecom services, even after Rogers Communications announced a price increase for some wireless phone plans. Bell is also reportedly raising prices for existing wireless phone plans in February. Despite some progress in lowering prices, Champagne believes that Canadians still pay too much and lack sufficient competition in the market.
Last year, Champagne issued a policy direction to the CRTC to prioritize competition, affordability, and consumer rights in decision-making. Nearly two dozen conditions were attached to Rogers’s merger with Shaw Communications, including a commitment to reduce costs for customers. However, the recent price hikes for certain month-to-month plans have raised concerns, as they go against the direction set by the government.
Vass Bednar, executive director of McMaster University’s Master of Public Policy program, sees the price increases as a tactic to encourage customers to lock into plans to avoid higher costs. However, she notes that customers have limited alternatives when it comes to choosing wireless providers. Bednar attributes the high telecom prices in Canada to the structure of the telecommunications industry, where major providers own and control the physical infrastructure.
David Soberman, a marketing professor at the University of Toronto, points out that regulations limiting foreign ownership in the telecom market contribute to the high prices in Canada. Compared to other countries with more competitive mobile phone rates, Canada’s telecom bills are among the highest in the world. Despite efforts to lower prices and increase competition, Canadians continue to face challenges in accessing affordable telecom services.