ARPU remains flat for wireless service providers despite increase in data usage: CWTA

An industry association-sponsored study released Wednesday argued that wireless companies in Canada are providing customers with better value for their services at fairly even prices. According to a report released by the Canadian Wireless Telecommunications Association (CWTA) on Wednesday, PwC Canada used trends in the consumption of data and its costs, the average household wireless expenditure, and the consumer surplus of wireless services to better assess the value that Canadians receive from their wireless services. According to the report, Canadians’ average data usage from 2015 to 2019 grew at a 27 per cent compound annual growth rate (CAGR). However, the average revenue per (ARPU) remained “relatively flat” for wireless service providers, increasing by 1.9 per cent CAGR. In other words, the ARPU increased from $64 to $69 as data consumption increased from 1 GB per month to 2.6 GB. “As a result, the average cost per 1 GB of data has decreased significantly, dropping from $27.96 per GB in 2015 to just $10.07 per GB in 2019,” according to the report. The trend of increased data usage per Canadian is likely to accelerate due to the widespread launch of unlimited data plans in 2019, the report went on to state. “Notably, consumers can now purchase plans with unlimited data for less than $3 per GB of high speed data,” the report states. The report notes that it is possible for consumers to receive 30 GB of the fastest speed available for $80 per month, with no overage fees and that wireless speeds have increased from an average of 13 Mbps in 2014 to 61 Mbps in 2021. According to the report, Canadian households may have increased their expenditures on wireless services and smartphones over the past decade, however, those expenses are offset by a 2.2 per cent CAGR decrease on landline phones, cameras, postal and print material expenditures. “Furthermore, consumers can expect to benefit from a new wave of innovation, as wireless connectivity unlocks the potential of the digital economy. The digital economy is expected to provide value for consumers beyond their personal devices, and to deliver significant benefits across economic, social and environmental factors.,” the report claims. According to a Rewheel Research report released Monday, Canada remains amongst the world’s highest wireless phone prices and amongst the top 10 for a wireless plan with over a thousand minutes, and 20 GB of data.

ARPU remains flat for wireless service providers despite increase in data usage: CWTA

Brief | October 6, 2021

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ARPU remains flat for wireless service providers despite increase in data usage: CWTA

Brief | October 6, 2021

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