Higher-speed internet plans more expensive in 2018: report

The prices of higher-speed wireline internet plans increased last year, and while the prices of wireless services in Canada are falling, they remain more expensive than in other countries, according a new report released by Innovation Canada Friday afternoon. The annual price comparison report, prepared this year by Wall Communications Inc., shows that home internet plans in the lowest two “service baskets,” which include speeds of below 15 Mbps and a data bucket of 50 GB or lower, were less expensive in 2018 than 2017. But the level 3 price basket, which includes download speeds of 16 to 40 Mbps and 100 GB of data, rose to $70.70 from $65.59 in 2017 – which is a “relatively high jump" of almost 8 per cent that "continued the price trend” of the last few years, the report said. The next tier, which includes plans with speeds between 40 and 100 Mbps and 150 GB of data, was up five per cent to an average of $87. Wireline plans with speeds between 100 Mbps and a 500 GB cap were also up eight per cent, to an average of $102.76. “Canada's average Level 3 to Level 6 basket prices are at the high end of the group of surveyed countries included in the study, although U.S. adjusted prices are higher than Canadian prices in all cases,” the report noted. The study compared pricing in Canada, Australia, France, Germany, Italy, Japan, the U.K. and the U.S. It collected prices in Halifax, Montreal, Toronto, Winnipeg, Regina and Vancouver, as advertised on telecoms’ websites, and included regular pricing only, excluding short-term promos. When it comes to wireless, the report noted that while “Canadian mobile wireless service basket prices have decreased (or remained unchanged) this year relative to last,” they were still “consistently at the upper-end of the group of surveyed countries.” For level 1 plans, which include voice only, Canadian plans cost an average of $25.73, down 15.7 per cent from last year. The international average was $15. Plans in the next service tier, which also include texting, were down 3.7 per cent to $39.43, while the average in the other surveyed countries was $22. The basket that includes plans with 1 GB of data increased by less than one per cent to $70.99, compared to $36 in the other surveyed countries. The next level of service, which includes 2 GB of data, was down 7.6 per cent to $75.44, and internationally an average of $40. The basket with 5 GB of data was down 16.4 per cent to $87.32, compared to the international average of $55. The most expensive basket, which includes 10 to 49 GB data was down 13.9 per cent to $227.87. The report noted the U.S., at $206.57, and Japan, at $222.66, are “not far off the Canadian price,” while prices in Europe and Australia are significantly less. Telecoms, and the Montreal Economic Institute (MEI), have previously taken issue with the report’s methodology, and this year was no different. The Canadian Wireless Telecommunications Association (CWTA) said in emailed statement Friday that the industry group remains concerned that “this study doesn’t provide an accurate comparison of wireless services between countries given it doesn’t take into account the many, many different promotions offered by Canada’s service providers as they vigorously compete for customers.” — With reporting by Anja Karadeglija at akarad@thewirereport.ca and editing by Kyle Duggan at kduggan@thewirereport.ca

Higher-speed internet plans more expensive in 2018: report

News | December 21, 2018

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Higher-speed internet plans more expensive in 2018: report

News | December 21, 2018

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