Thanks to the recent implementation of the Canadian Radio-television and Telecommunications Commission’s Wireless Code in December 2013, monthly bills for wireless services have dropped by $7 on average for customers in Canada. This good news comes after steady annual rises since the dawn of the iPhone.
The wireless code enforces several new rules, including:
- limit data charges in excess of the usage defined in their plans at $50/month;
- limit national and international data roaming charges in excess of the usage defined in their plans at $100/month;
- have a cellphone unlocked after 90 days, or immediately if they paid for the device in full;
However, while the Wireless Code appears to have benefited wireless customers with a reduction in monthly fees, “it may put increased financial strain on carriers over time,” says Adrian Chung, account director at JD Power, the company that tracked the price drop.
According to Chung, carriers will need to look for other products and services to make up the losses and generate new revenue streams.
“Tablets with data packages are starting to take hold, and the average additional spend is $34 dollars per month among those with a connected tablet on their plan, compared to those without one,” says Chung. “This is a great opportunity for carriers to leverage.”
Driven by the wireless code and its resulting reduced prices, Canadians’ overall satisfaction with wireless carriers improved, according to JD’s annual ranking of wireless providers.