Mobile phone users who subscribe to unlimited plans that come with sizeable amounts of data got to save a little money this year. Those who pay for low-to-mid-range plans have been stuck with higher bills.
And despite a price drop for some mobile phone plans, findings released Thursday (June 18) from Wall Communications revealed Canadians are still paying more for similar services found in most other developed nations.
The Wall report, which was made at the request of the Canada Radio-television and Telecommunications Commission (CRTC), determined a low-volume plan averages $37 in Canada compared with the G7 average of $22.
Meanwhile, a mid-range plan averages $48 in Canada compared with the $42 among other G7 countries.
And for the next level up, Canadians pay an average of $85 compared with the G7 average of $71.50. Only the U.S. and Japan have higher average prices than Canada.
But there was good news for some Canadians.
Prices for plans featuring unlimited talk and text with 2 GBs of data declined an average of 11% across Canada this year, dropping from $93 to $83.
Plans with limited local and long-distance calling options saw prices rise 4%, while plans with an average number of calls and 300 text messages experienced an 8% increase. Prices went up 7% for plans with high call volumes, 1 GB of data, a full set of features (such as voice mail or call display) and 300 texts.
“While mobile wireless prices are generally higher than last year, since 2008 when the price comparison study was first conducted, prices for talk and text service plans are 20% lower,” Wall president Gerry Wall said in a statement.
The report also found that prices for higher-volume talk, text and data plans have dropped 24% since 2008, while low-volume talk-only plans have increased by 14%.
One of the biggest price gaps between wireless providers exists between new players such as Wind, Mobilicity and stalwarts such as Bell (TSX:BCE), Rogers (TSX:RCI.B) and Telus (TSX:T).
Prices for comparable services typically run 25-50% lower at the new entrants, with the biggest differences applying to unlimited talk and text plans, according to the report.
