Wireless Code, home Internet, helping with data overage fees: Research

Fewer Canadians are paying for data overage fees and fewer are complaining about their wireless service charges. Whether or not that has to do with the COVID-19 pandemic is to be determined however, according to research commissioned by the CRTC and released Wednesday. The regulator commissioned market research company Kantar -- at a cost of $121,848 -- to conduct public-opinion research on how consumers understand their wireless service contracts and their rights as well as collect data on complaints, data usage, bill shock and ease of switching providers. The research found that Wireless Code -- established by the CRTC in 2013 as mandatory code of conduct that governs wireless carriers’ relationships with subscribers -- “continues to have positive impacts on Canadians” by effectively supporting consumers. The code’s two main goals are to empower consumers to take advantage of competitive offers and make informed decisions regarding their wireless service plans. Since 2015, according to the research, Canadians who choose wireless plans with data “remains high” at 85 per cent, which is a continual trend upward. “Those with data plans feel increasingly confident in their ability to manage their data (85 per cent, versus 81 per cent in 2020), with the majority reporting they find it easy,” the report states. However, it does acknowledge that stay-at-home orders brought on by the COVID-19 pandemic in March 2020 may have been a mitigating factor in high overage charges due to the higher use in home internet connections. “An increase in ease of data management and lower rates of bill shock may be driven by increased time at home, where many Canadians are presumably able to use their home Internet access to access the Internet rather than using their wireless data plan. A decrease in data overage fees as a reason for bill shock is also likely driven by more time at home and increased use of home internet rather than wireless data plan,” the report states. In that same vein, COVID-19 travel restrictions likely caused higher long-distance charges (17 per cent of those that experienced bill shock versus 6 per cent from the previous year) as more Canadians had to connect with friends and family remotely, the report found, while international roaming fees have decreased (7 per cent versus 17 per cent of those that experienced bill shock). Among consumers that did experience bill shock -- 16 per cent versus 21 to 29 per cent from 2014 and 2020 -- 41 per cent of them continued to cite data overage fees as the primary reason and two-thirds continue to report they have had charges in excess of $50 during the past year even though the Wireless Code mandates that providers must suspend data overage charges once they exceed $50 unless an authorized user consent to paying additional fees. “Canadians are finding their wireless contracts increasingly easy to understand, with the majority (62 per cent) saying they find their wireless contract clear and easy to understand. This reflects a five per cent increase over 2020,” the report states. “However, little has changed since 2020 regarding Canadians’ understanding of trial periods, with only half (51 per cent) finding the explanation clear and easy to understand. Similarly, half continue to find the explanation for cancellation of contract clear.”

Wireless Code, home Internet, helping with data overage fees: Research

Brief | June 23, 2021

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Wireless Code, home Internet, helping with data overage fees: Research

Brief | June 23, 2021

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