(Toronto) The federal Minister of Industry says that despite data showing that the cost of telecommunications services has decreased in Canada, many Canadians still do not feel the effects.
Speaking on Monday at the 23e Canadian Telecommunications Summit in downtown Toronto, Minister François-Philippe Champagne said he wanted to ensure Canadians are aware of improved offerings in the market as their cell phone and internet consumption increases increase.
“Our challenge is that Canadians feel it,” he said during a roundtable led by the president of the Canadian Telecommunications Association, Robert Ghiz.
“Sometimes my challenge is that the data says something, but people say, ‘What about my personal situation?’ “, he added.
Mr. Ghiz pointed to Statistics Canada data showing that cell phone plan prices have fallen by about 50 per cent in Canada over the past five years, including 26 per cent in the last year.
“I know that a politician and a government will never declare that their mission is accomplished,” said Mr. Ghiz, whose association represents the industry’s operators and manufacturers. But will you at least take some credit for yourself, and maybe give some to the industry? »
Mr Champagne said he was satisfied with the figures, which correspond to the latest package offers on the market, but acknowledged that they do not reflect the prices paid by those still using old mobile phone and internet packages.
“Cell phone and internet prices are an essential part of most Canadian families’ budgets and are a very expensive item. So people are rightly concerned – not just in Canada, I would say in different parts of the world,” the minister said.
“So, yes, we’re going to continue to push and make sure that we’re doing our part through regulation and otherwise, that Canadians see what the industry has done in terms of easier ways to shop around and change your plans,” he continued.
Plans adapted to user needs
In an interview, Champagne said part of the solution is to encourage carriers to proactively notify existing customers when they have the opportunity to reduce their monthly bill with a new plan available.
But critics have also argued that while many of these new plans allow customers to pay less per gigabyte of data, some force customers to purchase large quantities that they don’t necessarily need.
“We need to ensure that operators have plans tailored to the needs of different people based on their usage,” the minister said. If all these packages exist and it feels like people aren’t seeing them, it’s probably because everyone needs to do a better job of informing people about what’s available. »
Separately, a new report from PricewaterhouseCoopers, commissioned by the Telecommunications Association, indicates that the Canadian telecommunications sector spent $11.4 billion in capital investments in 2023 to expand wireless and broadband networks, representing 42.6% more per subscriber, on average, than carrier spending in the US, Japan, Australia and Europe.
Satellite technology
During his speech, Mr. Champagne announced that the federal government would launch a consultation on how to expand wireless services using satellite technology.
Despite the money spent on expanding networks, he noted that barriers to connectivity remain for people in rural and remote areas of Canada.
“This is the next generation where Canadians will be able to use their current phone, or essentially the next version of it, to be able to benefit from absolute connectivity,” said Mr. Champagne.
With natural disasters on the rise, he said it would also serve as a form of grid resilience when traditional networks fail.
Some Canadian operators have already started exploring satellite connectivity.
Telus announced last year that it had successfully tested technology that allows smartphones to send and receive voice calls and text messages using satellites. The test was carried out in partnership with Montreal provider Terrestar Solutions and non-terrestrial network service provider Skylo.
Rogers Group has partnered with SpaceX and Lynk Global to offer satellite-to-phone connectivity, while New Brunswick-based rural internet provider Xplore has committed to offering satellite internet in remote locations last fall after the Jupiter 3 satellite was launched into space.
“Outdated” rules, according to Mr. Péladeau
Mr Ghiz said it was “essential” that operators benefit from a stable regulatory environment that encourages investment to support high spending.
In a separate presentation, Quebecor President and CEO Pierre Karl Péladeau argued that more regulatory changes were needed to promote competition and lower prices.
Mr. Péladeau, whose company expanded its Videotron subsidiary after purchasing Freedom Mobile last year, is committed to developing 5G networks across Canada in the coming years. Meanwhile, the company is taking advantage of the CRTC’s Mobile Virtual Network Operator (MVNO) framework, which allows telecommunications companies to offer cellular phone services through competing carrier networks.
The rules aim to increase competition in mobile telephony by giving regional operators a presence in regions they did not previously serve, with an obligation to build their own networks in these areas within seven years .
But Mr. Péladeau said Quebecor is being held back by “outdated” rules, such as those that allow major operators to offer services to their customers at a retail price lower than the rate MVNOs pay for network access. .
“We’re not parasites and we’re not going to be on other people’s networks and do things that won’t create value,” he said. The condition is to build, but before building, you must have access. We need to ensure that the resulting roaming charges will also go down. Otherwise, we will not have the appropriate conditions to continue to foster competition. »