'Consider switching' mobile carriers, says federal department over price hikes

The Federal Official from Canada’s Innovation, Science and Economic Development (ISED) department has suggested that consumers should explore various options for mobile service providers in the wake of increasing prices, despite the industry minister’s acknowledgment of inadequate competition in the Canadian mobile service market. His remarks were made in context to the receipt of complaints about price hikes from service providers Rogers Communications and possibly Bell. Rogers earlier confirmed that a portion of its wireless customers should anticipate a monthly increase of around $5 - $9. Furthermore, certain customers also reported potential rises in Bell’s existing wireless plans by next month, according to tech news site MobileSyrup.

However, Keldon Bester, executive director of Canadian anti-monopoly advocacy group, opposes this idea stating that it's the companies' responsibility to compete for customers, not the consumers' to search for better deals in an uncompetitive market. This is particularly true for those who can't dedicate the time and effort required to source more affordable services.

Neither Bell nor Telus has responded despite multiple attempts for their comments. Quebecor, parent company of Videotron, has announced a price freeze for customers affiliated with its brands Freedom Mobile, Videotron, and Fizz. The carrier was obligated to lower prices following their acquisition of Freedom Mobile during Shaw’s merger with Rogers, the lowest price being $68 per month.

While Rogers wasn’t subject to similar conditions, the ISED official stated that the forthcoming increases are allowed. As of now, no breach of agreement has been recorded by Rogers. If found, the company could face damages of up to $1 billion. Following the final clearance of the merger with Shaw in April, Tony Staffieri, CEO of Rogers, promised to lower costs for users.

A particular customer segment can access a $25/month plan and a free smartphone with Rogers. However, the offer is limited to individuals falling under specific classifications such as provincial income support or disability benefits recipients among others. The telecom has also underlined that a few plans have witnessed a reduction in data costs per gigabyte even as the total amount paid by customers remains constant, according to a report by Statistics Canada.

The Canadian Telecommunications Association points out that the investment required for network enhancement remains high in Canada. Studies comparing global mobile and internet prices further underscore the country’s expensive rates. These conclusions were evidenced in February’s report by Wall Communications for ISED, which demonstrated that Canadian rates for cellphone and broadband services were among the highest internationally in 2022.