Statistics Canada says telecom prices continue to come down, driving inflation lower

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As MPs study the affordability of telecommunication services, Statistics Canada says cellphone and internet costs continue to decline, helping to drive the...

As MPs study the affordability of telecommunication services, Statistics Canada says cellphone and internet costs continue to decline, helping to drive the national inflation rate lower last month.

StatCan also said prices for internet access in February fell 13.2 per cent on a year-over-year basis and 9.4 per cent month-over-month, noting some special offers that were available from providers last month.The agency's telecom price calculations reflect two main factors — raw prices for services and "quality difference," said telecommunications consultant Mark Goldberg.

"If you go into a grocery store and the box of cereal on the shelf is $3.99, but last month it was a 500-gram box and this month it's a 400-gram box ... you'd say prices went up 25 per cent. In this case, it's the opposite." Telecom prices have been a hot topic lately and the issue is currently being studied by the House of Commons industry committee.

"I'm just not seeing plans that are tailored to more low-usage customers," said Mohammed Halabi, director and founder of MyBillsAreHigh.com, a company that helps customers negotiate with cellphone providers to save money. He added customers increasingly have opportunities to save on their cellular bills when bundling with other services such as TV or home internet.

 

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