Cellphone-plan price hikes irk subscribers

Hey there, time traveller!
This article was published 06/01/2024 (986 days ago), so information in it may no longer be current.

The recent announcements by telecommunications giants Rogers Communications Inc. and Bell MTS about forthcoming price increases for select cellphone plans have left subscribers grappling with concerns about the potential financial strain.

Rogers announced an average monthly increase of $5 for non-contract customers, while some Bell subscribers received $6-a-month hike notifications.

The price adjustments are to take effect on Jan. 17 and in February, respectively.

Bell MTS subscriber Ayobami Adeniji said her worry primarily revolves around the intricacies of managing a monthly budget effectively, noting the significant challenge she faces in juggling various expenses within a set financial framework.

“It’s not easy managing a budget, and any increase in my phone bill will throw things off balance,” she said. “This news has left me contemplating whether I’ll have to cut down on other necessities to accommodate these higher charges.”

Larry Adams, one of Rogers’ subscribers, shared similar apprehensions, noting the timing is wrong.

“With rising costs across the board, this additional expense will certainly pinch our household budget,” he told the Sun. “It’s frustrating when essential services become increasingly unaffordable.”

He values reliable services, but these price hikes make him question whether the increased costs are justified by improved services or are simply a means to boost profits.

Rogers Communications media relations director Cam Gordon told the Sun the average price rise for wireless customers is expected to be $5, noting these adjustments will specifically impact Rogers and Fido customers who are not under contract.

“The extent of the price adjustments will vary based on the specific plan or bundle the customer is subscribed to,” he said. “Customers under a term contract will not encounter changes to their base monthly service fee for the duration of their contract.”

The affected wireless customers, he said, will observe the price adjustments in their initial bill after Jan. 17, marking the implementation timeline.

On earlier price changes, he said, Rogers decreased the cost per gigabyte of data on its highly favoured 5G plan by half and reduced the starting price to $55 when combined with residential services. The change, he added, provided all Rogers 4G wireless customers with access to the 5G network without any additional fees.

Gordon said there are continuous initiatives aimed at strengthening service quality. These efforts include expanding capacity to guarantee consistent and dependable service, extending coverage to communities across Canada and improving tools for customer service.

“We are dedicated to providing our customers with mobile services that maintain the highest standards of quality and reliability, ensuring the best possible network experience,” he said.

In recent months, he said, Rogers has introduced several measures to make services more accessible, like the launch of the Connected for Success 5G Mobile Plan in November 2023, offering more than 2.5 million Canadians an economical pathway to connect to 5G wireless services.

Similarly, Canadian Telecommunications Association senior vice president Eric Smith told the Sun that despite a notable surge in the overall rate of inflation, mobile wireless and internet access prices have shown a declining trend.

“Any discussion on telecom prices in Canada must consider the trajectory of mobile wireless and internet access costs over the past several years,” Smith said. “The telecom sector has consistently invested billions annually in expanding and upgrading networks to provide subscribers with faster speeds, broader coverage, and increased data allowances.”

Citing data from StatCan’s Consumer Price Index, Smith said internet access services’ price index has witnessed a nearly seven per cent reduction over the past five years, while cellular services have experienced a significant decrease of more than 47 per cent during the same period. These figures, he added, stand in stark contrast to an overall inflation increase of 19 per cent for the equivalent period.

“Capital expenditures by the four largest telecom companies amounted to approximately $147 billion between 2010 and 2022, reflecting a commitment to network development,” he said. “Average internet download speeds have soared by almost 400 per cent from 2017 to 2022, while the average monthly data consumption per residential internet subscriber surged from 153GB to 440GB during the same period.”

Providing international context, Smith said there are similar price increases by carriers in other countries like the U.S., U.K. and Australia, noting recent price hikes in services by carriers in these countries underscore a global trend.

The spokesperson for Bell MTS did not respond to the Sun’s emails.

» aodutola@brandonsun.com

» X: @AbiolaOdutola