Mobile phone rates in Canada could soon become more expensive.
According to new data from Statistics Canada, Globe and mailThe overall cost of cell phone plans rose in October and November compared to last year, according to the Consumer Price Index (CPI). While the increase itself may not be noticeable, Statistics Canada notes that this is the first increase in about 30 months.
The agency explains that the index, while still much lower than in previous years, could mark the “beginning of a trend reversal.” Notably, industry groups such as the Canadian Telecommunications Association (which includes several of Canada's largest carriers) claim that wireless prices have dropped by as much as 65 percent since 2020.. However, the mathematics behind these statements does not always work, and it is also worth noting that Statistics Canada has changed the way it tracks wireless costs in 2024 to better reflect what Canadians actually pay.
One of the key reasons for this growth is the decline in immigration, which has historically led to an increase in the number of new telecommunications subscribers. Bell, Rogers and Telus said the same thing last year after signing up the fewest new customers in four years.
Of course it won't help carriers periodically increase costs. To that end, Statistics Canada reports that Canadians have collectively paid more for telecommunications services nearly every quarter for at least the last five years.
All of this is consistent with what telecom executives are saying. Last year, Bell and Telus executives say they expect wireless prices to rise as companies have shifted their focus from wireless discounts to home Internet offerings.
Source: Globe and mail
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