QUESTION PERIOD — Canadian Heritage
Service Contracts
June 18, 2024
Senator Gold, my question focuses on the costs associated with cellphone plans.
Canada has historically been one of the most expensive places to own a cellphone. We know the government has made it a priority to help lower the costs of cellphone plans. Statistics Canada recently reported that costs have declined by 50% since 2018. At the twenty-third annual Canadian Telecom Summit on Monday, Minister Champagne said that we need to do a better job of informing people of these cheaper plans. It may not be the government’s job to provide free promotion for our telecom companies, but some Canadians are financially struggling.
Would it not make sense for the government to promote these cost-saving measures and educate Canadians about these possibilities?
Thank you for your question, senator.
The government has certainly taken several actions to let Canadians know that there are now cheaper and better options for cellphone plans in Canada. Raising further awareness of the ways Canadians can save money on cellphone plans would certainly be welcome.
To that end, let me take a moment to highlight that the government has taken real action to lower the costs of cellphone plans by 25%. Indeed, that is a commitment that has now been surpassed. In December 2023, Statistics Canada reported that the costs of cellphone plans declined by 50% since December 2018.
Does the government not agree that phone companies should allow Canadians to switch plans stress-free and penalty-free? Would it not also make sense for the companies to help consumers identify plans and deals in advance of the end of their contract?
Making cheaper plans available is not only part of the solution, but Canadians must be able to switch plans or providers without major financial penalties.
The short answer is “yes.” Canadians who want to switch to a cheaper internet or phone plan often encounter discouraging practices from telecom companies, such as cancellation fees, which can prevent Canadians from saving money, or long waits on the telephone with unlistenable muzak to entertain us.
That’s why, in Budget 2024, the government proposes to introduce legislative amendments to the Telecommunications Act to prohibit service providers from charging consumers switching fees.
