TV, internet, phone too costly in Canada: report

Poorer Canadians are cutting spending on food and health care to maintain communications services that are becoming increasingly necessary and expensive, according to a new report on affordability. Canadians pay more for these services compared to people in many other western countries.

Communications cost more in Canada

A 2014 study compared costs in eight countries and found a typical package of home phone, mobile phone, internet and TVcosts about $182 in Canada, compared to $93 in France or $102 in the U.K.Poorer Canadians are spending an average of 7.6 per cent of their total annual expenditures on communications. That exceeds spending on clothing, health-care and education.

Internet increasingly necessary

Internet is becoming more important since governments and other entities increasingly direct questions or requests to their websites. As time goes on, it is more difficult to access services in person or by telephone. Schools are also increasing their use of internet, putting pressure on parents to ensure their children have access.

Television is an important form of entertainment, particularly for the poor. Cellphones have become ubiquitous and people still want to have landline telephone services because they are more secure.

‘Affordability’ should be law, says consumer group

The Public Interest Advocacy Centre says the Canadian government should amend the laws governing communications to include “affordability” under universal service obligations. This is done in other countries, including the U.S. The advocacy group’s report also says affordability should be calculated against other relevant expenditures to ensure people don’t have to reduce their spending in other areas.

“We see lower-income Canadians actually cutting back on some things that you and I would find difficult—some clothing purchases, some food when necessary, and the only other places folks can cut are in heating and utilities, things like that,” says John Lawford, executive director and counsel for the Public Interest Advocacy Centre.

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The report says, the total cost of communications should be capped at between four and six per cent.