Canadians Should Shop Around If They Want Better Prices for Mobile Services, Government Official Says

A person uses a cell phone in Ottawa on July 18, 2022. The Canadian Press/Sean Kilpatrick

Canadians’ inability to get a good price on wireless services comes down to a lack of looking around for a bargain, a government official says.

The comments were made by an official with the Department of Industry after senators remarked that what consumers are paying does not fit with Ottawa’s claims of declining mobile prices, as first reported by Blacklock’s Reporter.

“People will say, ‘I hear you say there is a 26 percent reduction in plan prices, my bill didn’t go down 26 percent, what are you talking about?’” said Andre Arbour, director general of internet policy at the industry department. He added that the “appropriate plan” is often listed on the provider’s website.

“It’s just people have busy lives understandably and they haven’t actually entered into the marketplace to shop for a new plan,” said Mr. Arbour. “Oftentimes things are functioning reasonably well. It’s just a question of helpful support to the consumer to better take advantage of what is available in the marketplace.”

The remarks follow a report by Statistics Canada that claims Canadians paid 26.5 percent less on a cell phone plan in 2024 than they did the previous year.

“The year-over-year decline was driven by lower prices for new plans and increases in data allowances for some cellular service plans,” the report said.

Statistics Canada also said the cost of internet service dropped by 13.2 percent year-over-year due to “specials offered by Internet service providers.”

Yet, North America ranks high for mobile service costs compared to other countries, according to Cable.co.uk, a cost comparison website.

The average price for cell phone services in North America is US$104.33, making it the third-most expensive region in the world. Of the four countries grouped in the North America region (U.S., Canada, Greenland, and Bermuda), Canada had the lowest prices at $58.26, compared to $65 in the U.S., $113 in Greenland, and $185 in Bermuda.

A price study done by Innovation, Science and Economic Development Canada for 2023 found that Canada had some of the highest prices compared to other countries for various cell phone plans.

Two to four gigabytes in Canada cost $35.25, compared to $84.82 in the United States, $23.51 in the United Kingdom, $16.78 in Germany, and $100.46 in Japan.

A cell phone plan with five or six gigabytes of data cost $45.46 in Canada, $53.73 in the U.S., $29.76 in the U.K., and $21.86 in Germany. A similar plan was not available in Japan.

When it came to the cost of higher data levels, Canada was still near the top of the bargain list, with 50-99 gigabytes costing about $70, compared to $79 in the U.S., $35.98 in the U.K., $67 in Germany, and $132 in Japan.