A Statistics Canada building and signs are pictured in Ottawa on Wednesday, July 3, 2019. THE CANADIAN PRESS/Sean Kilpatrick
As members of parliament delve into the affordability of telecommunication services, Statistics Canada reports a continuous decline in cell phone and internet costs, contributing to a reduction in the national inflation rate last month.
According to the consumer price index report released on Tuesday, consumers subscribing to cell phone plans in February paid 26.5% less compared to the same period a year earlier. This follows a year-over-year drop of 16.4% in January.
The decrease in costs is attributed to lower prices for new plans and increased data allowances for certain cellular service plans.
Statistics Canada also noted a 13.2% year-over-year and 9.4% month-over-month decrease in internet access prices in February, highlighting special offers from providers during the period.
Telecommunications consultant Mark Goldberg explained that the decline in prices, as indicated in the national inflation report, suggests that consumers are receiving better value for their money through new offerings, such as larger data packages, international roaming benefits, or voice-to-text voicemail services.
While most goods and services have experienced price increases, fierce competition in the telecom sector has led to significant declines in prices for both cellular and internet services, according to Nick Kyonka, a spokesman for the Canadian Telecommunications Association.
The issue of telecom prices has gained prominence and is currently under examination by the House of Commons industry committee. In January, concerns were raised when Rogers Communications Inc. announced a $5 average price increase for some wireless customers, and similar actions were taken by Bell Canada.
During a committee hearing on Monday, the chief executives of Rogers, Bell, and Telus Corp. emphasized that phone and internet prices are decreasing. However, Mohammed Halabi, director of MyBillsAreHigh.com, expressed concerns about the lack of plans tailored to low-usage customers and highlighted the challenges customers face with bundled services.
Goldberg emphasized the importance of recognizing changes in pricing structures, particularly for long-term customers. He advised against remaining on outdated price plans, as they may not provide sufficient data for the same amount of money.
