Although the minister acknowledged Canada does not have enough competitive options for mobile services, another federal official said consumers can look to other service providers if they face rate increases. , said it should do so again.
The message from Innovation, Science and Economic Development Canada (ISED) comes as Industry Minister François-Philippe Champagne says Canadians “still pay too much and there is too little competition” for mobile phone services. The announcement was made a few hours after the statement was made.
“Customers may consider changing service providers,” ISED Canada’s representative wrote Thursday when asked to respond to Rogers Communications Inc.’s price increase and Bell Inc.’s reported price increase.
rogers said earlier this week Some of the company’s wireless customers will see price increases of less than $7 to $9 per month in the coming weeks. On Friday, it announced an average price increase of $5.
Some customers are reporting that Bell will increase the monthly price of their existing wireless plans in February. this is. . .was First reported by tech news outlet MobileSyrup.
- Have you noticed your phone bill going up? Email ask@cbc.ca
One competition expert is unconvinced by the idea that Canadians should bear the burden of finding lower prices.
“It shouldn’t be the consumer’s responsibility,” said Keldon Bester, executive director of the Canadian Anti-Monopoly Project, a research and advocacy group. I raised my voice in opposition Rogers recently merged with Shaw Communications.
“As opposed to businesses competing for customers, customers are shopping around for the best deals in a not-so-great market.”
Rogers Communications has admitted to increasing prices on some cell phone plans, but the move has not been well-received by many customers.
Part of the problem, Bester said, is the high cost of time and effort it takes to find savings.
“Sure, it’s possible to switch. But what we need to realize is that the people who need these affordable services the most are the ones who can spend an hour on the phone with Bell and keep negotiating. “It’s not the kind of people who can get a better deal,” he said.
Neither Bell nor Telus responded to repeated requests for comment.
Quebecor, owner of cable and mobile provider Videotron, announced Thursday that it will implement a price freeze for customers of its Freedom Mobile, Videotron and Fizz brands.
Quebecor acquired Freedom Mobile from Shaw as part of the Calgary-based telecommunications company’s merger with Rogers. Under the agreement, Videotron was required to lower its prices, but the lowest price the government could enforce was $68 per month.
Rogers was not subject to similar price controls in its acquisition of Shaw. Federal officials say future increases will be allowed.
“At this time, there is no indication that Rogers is in breach of the transaction agreement. However, Rogers is subject to binding reporting obligations and, if breached, could be subject to significant damages of up to $1 billion. ISED Canada representative said in an email.
When the merger finally cleared all hurdles in April, Rogers’ CEO promised to reduce costs for consumers.
“Prices will go down,” Tony Staffieri said.
Rogers noted this week that the company is offering eligible Canadians a free smartphone and a $25 monthly plan. However, this plan is not available worldwide. To qualify, consumers must belong to certain groups, including, but not limited to, receiving state income support, disability benefits, or guaranteed income supplements for seniors.
![Photo taken on March 15, 2021 at Rogers Communications' Toronto headquarters. "ted rogers way" They are lined up above.](https://i.cbc.ca/1.6222733.1704500572!/cumulusImage/httpImage/image.jpg_gen/derivatives/original_780/rogers-communications-head-offices.jpg)
Rogers also noted that some plans are seeing lower prices per gigabyte of data.
Statistics Canada reported the same trend However, expanding “data allowances” actually lowers the price of a mobile phone because it is calculated as part of the inflation rate, even if the total amount consumers pay has not decreased. He pointed out that it may appear that there is.
The Canadian Telecommunications Association says the cost of investing in networks remains high for the Canadian telecommunications companies it represents.
Eric Smith, the group’s senior vice president, said: “The division invests billions in network expansion and enhancements each year to ensure subscribers enjoy faster speeds, greater coverage and larger data allocations. “I have invested dollars,” he wrote.
But studies comparing phone and internet prices around the world continue to detail Canada’s high prices.
One such report, produced by Wall Communications for ISED Canada last February, found that the country will still have some of the highest prices for mobile phone and broadband services in the world in 2022. revealed.