Canadians are still paying too much for telecommunications services, the industry minister said Thursday, a day after Rogers Communications announced it would increase prices on some wireless phone plans.
Mr. Rogers said he would do so on Wednesday. raise costs Some wireless plans for non-contract customers. Bell will also reportedly raise some prices on existing wireless phone plans in February. According to the report From mobile syrup.
“To be clear, while some progress has been made in lowering prices, Canadians continue to pay too much and see too little competition,” Industry Minister François-Philippe Champagne said in a statement to CBC News. “
“That’s why last year I issued a policy order for the CRTC to put competition, affordability, and consumer rights at the core of its decisions.”
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The merger between Rogers and Shaw Communications had about 20 “enforceable” conditions attached when Champagne announced approval of the merger in 2023, including cost savings for customers.
“Prices for some wireless plans have fallen by more than 22 per cent over the past year, but the recently announced price increases for certain monthly plans are an important step that we set at a time when Canadians are struggling. It’s the opposite of what we did, to make ends meet,” Champagne said Thursday.
“We urge businesses and carriers to take customers seriously over profits at this time.”
The long-running deal, first announced in March 2021, was subject to a number of regulatory hurdles as opponents raised concerns about reduced competition.
At the time, Rogers CEO Tony Staffieri promised in an interview that the company would lower prices for customers.
Mr. Bell did not respond to requests for comment.
“Part of our heritage”
Bas Bednar, executive director of McMaster University’s public policy master’s program in Hamilton, said the increase could be seen as a type of “disciplinary intervention.”
He told CBC News that carriers may want to encourage customers who have “chosen more flexible contracts” to lock into their plans to avoid price hikes.
But she points out that there aren’t many alternatives for customers who are fed up with their wireless provider’s price hikes.
“It’s part of our heritage now,” she said. “Partly it’s because of how we’ve built it so carriers can compete.”
Rogers Communications has admitted to increasing prices on some cell phone plans, but the move has not been well-received by many customers.
The three major wireless providers (Rogers, Bell, and Telus) own and operate the physical infrastructure and rent it to small businesses that may offer cheaper options.
According to Bednar, that could lead to higher prices as well.
According to , Canadians have some of the highest communication costs in the world. industry the study.
David Soberman, a marketing professor at the University of Toronto’s Rotman School of Management, said restrictions on foreign ownership in the telecommunications market are also contributing to the price hike.
“Countries where mobile phone rates are much more competitive are countries that don’t have these obstacles,” he said.
