Canadians happy with wireless plans after switching: CTA survey

TORONTO — Nearly half of Canadian consumers have switched or plan to switch their cell phone plans —with many finding better deals — a new survey has found. Abacus Data conducted the poll on behalf of the Canadian Telecommunications Association (CTA). The results were released Tuesday morning, the second day of this year’s Canadian Telecom Summit. Research found 26 per cent of customers changed their wireless plans over the past year. Just under half–47 per cent–switched to a new provider while the other 53 per cent opted for a different plan with their current provider. The vast majority of those switching cited better pricing as the reason for the change. Fully 79 per cent of those surveyed said cost was the most important driver in their decision. In addition, 49 per cent said they changed to get more data. Among those who had not switched, 19 per cent said they anticipate changing plans in the coming year, with a further 29 per cent being uncertain. Price is the reason for 85 per cent of this demographic. Sixty three per cent who have switched report their costs are lower than before. An additional 17 per cent note that they are receiving more services for the same amount as they had been paying. Among those services are increased data (74 per cent) and higher data speeds (49 per cent). “These findings illustrate a positive trend in the telecommunications industry, where Canadians who switch plans are not only benefiting from lower prices but also receiving enhanced services,” Abacus said in a statement. “This shows that the sector has responded to consumer demands and preferences by offering reduced pricing and value-added services.” The impact of inflation and the uptick in living paycheque to paycheque were influences on wireless plan purchasing behaviour. The survey found that 94 per cent of respondents noticed an increase in their personal cost of living. Despite that, 56 per cent said their household finances were good, with an additional nine per cent reporting they were very good. In dealing with customer perception, the study discovered that 86 per cent of those responding felt they were getting a better deal after switching. The complexity of the market shows service providers they need to offer both lower prices and better services. “Despite critics claiming that Canadians are not experiencing lower service bills, the majority of those who have switched plans report they are paying less and receiving better value than before,” the survey stated. The CTA celebrated the findings in a news release. “While the cost of most goods and services have increased over recent years, the telecom industry has played a key role combating rising prices,” the association said. It pointed to numbers in Statistics Canada’s Consumer Price Index that show telephone services have been putting downward pressure on rising inflation. During a fireside chat with CTA president and CEO Robert Ghiz on Monday, association SVP Eric Smith teased the Abacus survey’s results. He said the findings disprove theories that Canadians are not saving money or lowering their cellular bills. “There’s so many misconceptions that exist out there. It is extremely frustrating,” said Ghiz. Critics are “finally” starting to admit that prices are going down, but will often follow that up with other claims, he lamented. He described it like playing “a game of Whack-a-Mole.” Ghiz fired off a list of what he said were common criticisms of the telecom industry, dispelling them as he went. He cited claims that prices in other countries have declined more than they have domestically, or that price measurements are skewed because mobile plans are “offering too much data,” or that companies’ average revenue per user (ARPU) remains flat. “You run into people who don't compare apples to apples, they compare apples to oranges,” said Ghiz. He touted the results of a recent study from Innovation, Science, and Economic Development Canada (ISED) comparing telecom prices between G7 countries as well as Australia. It found that many of Canada’s wireless prices rank lower than those in the United States. However, the ISED report notes that wireless prices remain much higher than those in Europe and Australia. It also found, when it comes to internet plans, Canada’s prices are the second-highest of the surveyed countries after Australia. The prices for most U.S. internet offerings are less than half of their Canadian equivalents. Ghiz also highlighted the significant domestic investments made by telecoms, pointing to findings in another report released Monday that found the sector spent $11.4 billion in capital investments to expand networks. “Our facilities-based providers in Canada are spending money, but they still need to spend because we need to connect that last mile,” said Ghiz, referring to rural communities stuck on the other side of the digital divide. “We're a large country and there is a lot more connectivity to do.” He emphasized how many of Canada’s important industries operate in rural areas and need to have improved connectivity if the country wants to see productivity gains. “The economic engine of Canada is rural Canada,” said Ghiz. “Once they are connected, like the rest of Canada, I think we're going to see tremendous growth opportunities in our economic growth and GDP.” Abacus surveyed 5,000 people from May 16 to 24. The margin of error is +/- 1.39 per cent, 19 times out of 20. Data was weighted by age, gender, education and region. – Reporting by Paul Park at ppark@thewirereport.ca and Phalen Tynes-MacDonald at pcreed@thewirereport.ca

Canadians happy with wireless plans after switching: CTA survey

News | June 18, 2024

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Canadians happy with wireless plans after switching: CTA survey

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