Are Telecom Prices Really Dropping? The Truth behind "Lower" Rates in Canada

When Statistics Canada claims that telecom prices are dropping, many Canadians are left scratching their heads as they compare this to their own rising bills. If prices are falling, but your bill stays the same—or even increases—are they really dropping? 

This contradiction highlights a deeper issue: flawed data analysis that could mislead policymakers into thinking that no action is needed to foster competition in the telecom sector. The reality is quite different, and Canadian consumers continue to face some of the highest telecom costs in the world. 

The Problem with StatsCan’s Approach

StatsCan reported this year that wireless prices were 26.5% lower in February 2024 compared to the same month in 2023, citing promotions and larger data plans as reasons for the decline. Internet prices also supposedly dropped 13.2% year-over-year. 

However, these figures fail to account for what actually matters: customer bills. Despite the reported "decline," bills for both wireless and internet services remain steady or are climbing. 

What Customers Are Really Paying

A key metric in the telecom industry, Average Revenue per User (ARPU), gives a clearer picture. ARPU at Canada’s largest providers—Bell, Rogers, and Telus—has barely budged in recent years. For home internet, ARPU rose to $71.56 in late 2023, a 10% increase compared to the pre-pandemic era. These figures highlight that customers aren’t saving money, even as advertised prices may appear to drop. 

Where Is the Competition?

Canada’s telecom market has seen a sharp decline in competition. Major providers have systematically acquired nearly all independent ISPs, consolidating their dominance. With fewer options, consumers face rising costs and diminished opportunities to switch to more affordable alternatives. 

Hidden Costs and "Add-Ons"

ISPs often defend high ARPU by pointing to optional add-ons like extra data or roaming packages. But many of these aren’t truly optional. Activation fees, international roaming costs, and higher charges for better data plans are increasingly unavoidable for most customers. 

Additionally, StatsCan’s methodology accounts for “quality adjustments,” such as doubling data limits without increasing the base price. While more data might be welcome, it doesn’t change the amount a customer pays monthly, making this approach misleading. 

Canada’s Global Ranking in Telecom Costs

Independent international comparisons show how dire the situation is for Canadians. The country ranks among the highest globally for both wireless and internet prices. In 2022, Canada ranked 25th out of 26 peer countries for internet costs, according to the U.S. Federal Communications Commission. 

Policymakers Must Act

Canada’s long-standing telecom oligopoly continues to hurt consumers. The lack of competition has driven up prices and stifled innovation. The federal government, under pressure to fulfill its promise of lowering telecom bills, must address these systemic issues. 

Lower advertised prices or temporary promotions shouldn’t distract from the core problem: Canadians are paying far too much for essential telecom services. True relief will only come when competition is restored and customers are no longer locked into a system where their bills climb regardless of market trends. 

At IVC Telecom, we’re committed to transparency and fair pricing. Unlike the big players, we believe in offering real value without hidden fees or misleading promotions. It’s time for a telecom industry that prioritizes customers, not profits. 

*Ready for a better internet experience? Explore IVC Telecom’s affordable, no-surprise internet plans today!