Cost of Canadian wireless services has declined 17 percent since June 2017: report

Canadian wireless prices are on a “swift decline,” according to a recent report from Toronto-based non-profit think tank C.D. Howe.

The report obtained its data from Statistics Canada, and showcases that the price of cellular services have declined by almost 17 percent between June 2017 and December 2019.

Statistics Canada got its information by compiling all costs with the services of a cellular device in a given period. Additionally, the index tracks several “representative profiles” for wireless customers in Canada, as plans are often discontinued and not modified.

Since November of 2018, when it became more popular to purchase a new device separate from a plan, Statistics Canada decided to exclude the cost of devices from its index.

Additionally, one of the most significant declines of wireless services occurred in July 2019, when Canadian carriers introduced unlimited data plans.

Innovation Minister Navdeep Bains has been tasked with reducing cellphone bills as per his mandate letter. More specifically, he’s been asked to “use all available instruments” to reduce the cost of cellphone price in Canada by 25 percent, which is something that Prime Minister Trudeau promised during his election campaign.

Bains has been asked to work with telecom companies to expand mobile virtual network operators (MVNOs) in the market. If the target hasn’t been reached in two years, his mandate letter instructs him to “expand MVNO qualifying rules and the CRTC mandate on affordable pricing.

Further, the report from C.D. Howe also indicates that the all-item Consumer Price index has increased by 4.6 percent between June 2017 and December 2019.

Source: C.D. Howe Institute