Why are Canadian phone plans so expensive? (Marketplace)

CBC Marketplace Investigates Canadian Cellphone Plans

CBC Marketplace investigates why Canadian cellphone plans remain expensive and whether customers have meaningful alternatives. Phone-plan negotiator Mohammed helps several customers compare offers and negotiate with providers.

The report finds that switching plans or bargaining can lead to substantial savings. One customer could save nearly $200 a month across four lines, while another was told he could save nearly $4,000 over two years. However, getting a good deal can require repeated calls, and results vary between customer-service agents. Customers may also face long waits.

Competition and Consumer Challenges

The investigation questions whether Canada’s major carriers face strong competition. A former wireless competitor says mandated tower-sharing was difficult to put into practice. The report also notes that brands such as Fido, Koodo, Chatr and Virgin Mobile are owned by Bell, Rogers or Telus, rather than being independent competitors.

The report highlights the experience of a customer living near the U.S. border who was charged roaming fees when his phone connected to a U.S. tower. He sought credits and a better plan, while Mohammed pressed the carrier to address the charges.

Comparing Data Costs

A comparison with mobile users in France, Australia and Ireland suggests that ordinary data activities can cost much more in Canada. The report estimates that five minutes of Instagram use costs 20 cents in Canada, while downloading a YouTube video costs $2.36. In Ireland, the YouTube download costs five cents.

Conclusions

Contributors argue that limited competition is reinforced by political choices: smaller competitors have not been adequately protected from being absorbed by incumbents, and major carriers are influential lobbyists.

The report calls for stronger consumer protections and sustained efforts to promote competition. It also encourages customers to compare plans and negotiate with their providers.

Presenters and Contributors

David is the host and reporter. Other contributors include Mohammed, the phone-plan negotiator; Anthony; Brian; Deborah; Steve; Jeff; Cedric; Isabelle; and Theo. Unnamed customer-service agents and a manager also appear.