Household spending on telecom services up 2%: CRTC

Canadian households spent an average of $222.83 a month on communications services in 2016, the CRTC said in a report released Thursday. That’s a two per cent increase, or $4.41, from the previous year, higher than the 1.4 per cent inflation rate, it said in the report. The report provided more up-to-date data on spending than the commission’s latest Communications Monitoring Report. Households spent an average of $92.08 a month on mobile services, significantly more than the $53.75 they spent on television, or internet service, which cost them an average of $49.50. They spent the least on landline service, with an average of $27.50. The report also outlined that low-income households spend a larger proportion of their income on communications services than those households with higher incomes, and those in rural areas pay more than their urban counterparts. That $222.83 a month the average Canadian household spent amounted to 2.9 per cent of their $91,347 income, the CRTC said. In comparison, those in the highest income quintile brought in an average of $219,031 a year and spent $307.25, or 1.7 per cent. Lowest income quintile households earned an average of $19,559 and spent $140.09 a month, which represented 8.6 per cent of their annual income. Internet advocacy group OpenMedia said in a Thursday press release those statistics highlight the need for more affordable options. “The idea that anyone should be spending eight per cent of their income towards communications services is absurd, and unfair,” digital rights advocate Katy Anderson said in the release. The CRTC is currently looking into mandating low-cost data-only plans as a response to the federal government’s concerns about affordability for lower-income consumers. In January, the regulator declined a proposal from a collection of public advocacy groups to put in place internet subsidies for low-income Canadians. The CRTC’s report also outlined that those in rural areas spend more on telecom services, an average of $227.83 a month, than those who live in urban areas, who pay an average of $218.25 a month. That difference of $9.58 has widened since 2012, when rural households spent only $4.86 more than those in urban areas. “The slight difference in average household expenditures between urban and rural communities reflects the slightly higher prices offered in rural areas, where there are typically fewer service providers,” the report said. Spending on landlines dropped 8.8 per cent between 2015 and 2016 as spending on mobile grew by the same amount. Internet service revenues grew by 6.5 per cent, while TV spending was down 1.4 per cent. That reflected changes in subscription rates, as 7.1 per cent of households dropped their landlines, though the majority, 67 per cent, still reported having one. A higher proportion, 88 per cent, had mobile devices, which was up 2.1 per cent from the previous year and represented an average of 1.6 devices per household. Slightly fewer, 87 per cent and 0.6 per cent more than the previous year, had internet service. TV service subscriptions were down 3.9 per cent, to 75 per cent of households. — With reporting by Anja Karadeglija at akarad@thewirereport.ca and editing by Ahmad Hathout at ahathout@thewirereport.ca

Household spending on telecom services up 2%: CRTC

Broadcast | August 16, 2018

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Household spending on telecom services up 2%: CRTC

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