The average Canadian cellphone bill has increased $9 since last year to an average of $77 per month, according to a J.D. Power & Associates report – more evidence that Canadians are being gouged by the Big Three telecoms, says Vancouver telecom watchdog OpenMedia.
OpenMedia said that, given the inflation rate has been 1% since the start of 2013, a 13% increase for mobile service is evidence Canadians are being gouged in a market dominated by Telus, Bell (TSX:BCE) and Rogers Communications Inc. (TSX:RCI).
"Cellphone service in Canada should be affordable for everyone," said OpenMedia executive director Steve Anderson. "But even in the face of rising prices and diminishing choice, Industry Canada is failing to take bold action.
"With independent providers unable to gain a foothold in this country and offer real choice, the Big Three are able to raise prices at will and to trap Canadians in restrictive contracts with poor service. This has been going on for too long, it's getting worse and it's preventing our digital economy from thriving."
Telus, Bell and Rogers control 94% of the Canadian mobile market.
The J.D. Power report also found that smartphone adoption in Canada rose to 63% in 2013 – an increase of 9% in one year.
It also reported that mobile subscribers who use online self-service billing and helpdesks, as opposed to telecom call centres, had a much higher customer satisfaction rate.
Koodo, which is owned by Telus (TSX:T), and SaskTel ranked highest when it came to customer support satisfaction.
"We see a sizable shift in behaviour, with customers opting to use online self-service tools to address issues with their services or device, and overall satisfaction is highest when customers use their carrier's online chat function," Adrian Chung, account director at J.D. Power & Associates, said in a press release.
"It's important for wireless carriers to continue focusing on improving their website's functionality in order for customers to benefit from the convenience and timeliness of this service option, which is not only a more cost-effective way for carriers to interact with their customers, but also creates a more positive experience when a problem is encountered."
