Wireless rates are increasing again in Canada, one of the most expensive markets in the world.
Photo Credit: Fotolia / Antionio Guillem

Cell-phone service more expensive in Canada

Cell-phone, home-phone and internet service is more expensive in 2016. Canada’s three largest telecommunication companies, Bell, Rogers and Telus have raised, or are in the process of raising their rates.

The companies, which control almost 90 per cent of the Canadian market, claim the low Canadian dollar is to blame.

“The modest wireless rate plan increase reflects increasing costs for network components resulting from a weaker Canadian dollar, as well as the annual multibillion-dollar investments required to keep up with the growing demand for wireless data. The change applies only to new contracts and renewals, so existing customers won’t notice a change to their monthly bills,” A spokeswoman from Telus, explained to CBC News.

“any old excuse will do”

David Christopher, spokesman for Open Media.ca says he doesn’t buy the reasoning. “I think it’s a case of any old excuse will do”. He says this is just the latest in a series of price hikes, that generally take place simultaneously. Christopher says last year telecomm service rates went up by 14 per cent, about five times the rate of inflation.

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Until now most of the increases have been in mobile service, but this time home phone service is being increased as well. Christopher says this is unfortunate as the majority of people still using home phones tend to be elderly Canadians and those in rural and northern regions where mobile service is unreliable or lacking altogether.

Most of the increases are in the five dollar (Cdn) per month range, and most are for new customers and people renewing their service. Eventually everyone will pay.

All of the new refugees arriving in Canada will be encountering the hefty prices, where even the base service, for bring-your-own-device plans, are increasing.

Bell and Telus are increasing the cost of home phone, internet and TV packages on February 1st, 2016. Rogers raised their internet prices and will increase the price of TV packages sometime in February.

Those people who take this opportunity to terminate their home phone service can be prepared for some challenging customer service. Often customers get transferred to “client retention” departments where the dialogue can deteriorate into nasty exchanges. Anecdotal evidence is widespread, and many Canadians trade horror stories of their experiences.

David Christopher says it is time the new government step in to make meaningful change and through the CRTC, create the conditions for new entries into the wireless market to provide Canadians with real choice and options, to what the big three companies now provide.

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