2016 Price Comparison Study of Telecommunications Services in Canada and Select Foreign Jurisdictions

Prepared for: The Canadian Radio-television and Telecommunications Commission (CRTC)

Prepared by: NGL Nordicity Group Ltd. (Nordicity)

ISSN 2371-4212

Nordicity Group Limited

NOTE:The views expressed in this Study are solely those of Nordicity Group Limited and do not necessarily represent views of the Canadian Radio-television and Telecommunications Commission

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Table of Contents

Overview

This Study, commissioned by the Canadian Radio-television and Telecommunications Commission (CRTC) and prepared by Nordicity Group Limited, is the 9th (2016) edition of the annual telecommunications services price comparison Study. The purpose of this Study is to provide a detailed comparative price analysis of telecommunications services in Canada vis-à-vis the US and six other countries.

Key Parameters

As in previous years, the telecommunications services examined in this Study were classified in five main categories. Individual service baskets were defined according to increasing levels of service usage and feature availability under each category. The total number of service baskets under each category was based on distinct levels of service usage, the availability of feature offerings, as well as their associated prices. Prices were measured for different pre-defined service baskets under each category.

Service baskets used for each category of telecommunications services are listed below:

As in the previous year’s Study, country specific average prices in equivalent Canadian dollars were determined for the above service baskets, based on a survey of known service providers in principal cities of eight jurisdictions: Canada, the US and six other countries:

  1. Canada: Halifax (NS), Montreal (QC), Toronto (ON), Winnipeg (MB), Regina (SK) and Vancouver (BC)
  2. United States of America (US): Boston (MA), Kansas City (MO), Minneapolis (MN), and Seattle (WA)
  3. Australia: Sydney; United Kingdom (UK): London; France: Paris; Italy: Rome; Germany: Berlin and Japan: Tokyo

Key Findings

This section summarizes Nordicity’s key findings in each of the five categories of telecommunications services. For the purpose of comparing international price data, foreign currency prices were converted to Canadian dollars (CAD) using the Bank of Canada’s monthly average exchange for the month of February 2016. The prices were further adjusted for the purchasing power parity (PPP) differences between countries using the OECD’s PPP comparative price level indices for February, 2016.

Table 1: Fixed Telephony: International Price Comparison and Canada's Price Difference Relative to Foreign Jurisdictions
Country Service Basket Level
Level 1: 400 Minutes with 10% LD Level 2: 1,000 Minutes with 20% LD Level 3: 1,600 Minutes with 30% LD
Canada $39.52 $55.78 $60.32
U.S.A. $42.03 6.0% $58.46 4.6% $77.05 21.7%
Australia $51.43 23.2% $67.59 17.5% $72.23 16.5%
U.K. $39.61 0.2% $50.59 -10.3% $59.28 -1.8%
France $37.61 -5.1% n/a n/a $57.41 -5.1%
Italy $42.40 6.8% $45.81 -21.8% $54.01 -11.7%
Germany $42.93 7.9% $64.49 13.5% $77.11 21.8%
Japan $34.91 -13.2% $57.46 2.9% $85.17 29.2%
Canada's Rank, (from Highest) 6 5 5
Table 2a: Mobile Wireless Telephony: International Price Comparison and Canada's Price Difference Relative to Foreign Jurisdictions
Country Service Basket Level
Level 1: 150 Minutes Level 2: 450 Minutes and 300 SMS Level 3: 1,200 Minutes, 300 SMS and 1 GB Data
Canada $41.08 $48.77 $74.67
U.S.A. $27.00 -52.1% $51.64 5.6% $73.00 -2.3%
Australia $28.19 -45.8% n/a n/a $30.91 -141.6%
U.K. $20.84 -97.2% $25.79 -89.1% $30.13 -147.8%
France $22.49 -82.7% $24.17 -101.8% $38.08 -96.1%
Italy $17.70 -132.1% $24.41 -99.8% $34.79 -114.6%
Germany $17.15 -139.6% $28.28 -72.5% $56.20 -32.9%
Japan $29.06 -41.4% $48.78 0.0% $89.72 16.8%
Canada's Rank, (from Highest) 1 3 2
Table 2b: Mobile Wireless Telephony: International Price Comparison and Canada's Price Difference Relative to Foreign Jurisdictions
Country Service Basket Level
Level 4: Unlimited Minutes, 300 SMS and 2 GB Data Level 5: Unlimited Minutes, SMS and 5 GB Data Level 6: Unlimited Minutes, SMS and 10 GB Data with 3 Lines
Canada $81.05 $96.55 $231.99
U.S.A. $89.50 9.4% $117.33 17.7% $206.19 -12.5%
Australia $44.78 -81.0% $66.67 -44.8% $198.50 -16.9%
U.K. $35.55 -128.0% $42.22 -128.7% $99.31 -133.6%
France $61.60 -31.6% $70.12 -37.7% n/a n/a
Italy $49.42 -64.0% $61.02 -58.2% n/a n/a
Germany $68.12 -19.0% $88.23 -9.4% $284.12 18.3%
Japan n/a n/a n/a n/a n/a n/a
Canada's Rank, (from Highest) 2 2 2
Table 3a: Fixed Broadband Internet: International Price Comparison and Canada's Price Difference Relative to Foreign Jurisdictions
Country Service Basket Level
Level 1: 3 to 9 Mbps Level 2: 10 to 15 Mbps Level 3: 16 to 40 Mbps
Canada $41.94 $58.88 $63.48
U.S.A. $79.64 47.3% $83.85 29.8% $97.53 34.9%
Australia $58.38 28.2% $54.49 -8.1% $57.41 -10.6%
U.K. n/a n/a n/a n/a $40.43 -57.0%
France n/a n/a $73.83 20.3% n/a n/a
Italy n/a n/a $64.29 8.4% $41.77 -52.0%
Germany $28.28 -48.3% n/a n/a $49.75 -27.6%
Japan n/a n/a $51.75 -13.8% $71.52 11.2%
Canada's Rank, (from Highest) 3 4 3
Table 3b: Fixed Broadband Internet: International Price Comparison and Canada's Price Difference Relative to Foreign Jurisdictions
Country Service Basket Level
Level 4: 41 to 100 Mbps Level 5: Over 100 Mbps
Canada $78.77 $114.65
U.S.A. $112.30 29.9% $127.69 10.2%
Australia $71.03 -10.9% n/a n/a
U.K. $54.20 -45.3% $57.56 -99.2%
France $63.80 -23.5% $70.54 -62.5%
Italy $53.02 -48.6% n/a n/a
Germany $61.78 -27.5% $56.57 -102.7%
Japan $49.78 -58.3% $71.36 -60.7%
Canada's Rank, (from Highest) 2 2
Table 4: Mobile Wireless Broadband: International Price Comparison and Canada's Price Difference Relative to Foreign Jurisdictions
Country Service Basket Level
Level 1: 2 GB to less than 5 GB Level 2: 5 GB to less than 10 GB Level 3: 10 GB and more
Canada $46.47 $63.30 $80.98
U.S.A. $50.68 8.3% $76.93 17.7% $110.38 26.6%
Australia $15.57 -198.5% $29.67 -113.3% $48.17 -68.1%
U.K. $17.61 -163.9% $21.07 -200.4% $24.47 -230.9%
France $14.98 -210.1% $28.11 -125.2% $63.45 -27.6%
Italy $14.35 -223.8% $21.71 -191.6% $31.58 -156.4%
Germany $23.56 -97.3% $37.31 -69.7% n/a n/a
Japan $51.81 10.3% $73.74 14.2% $87.09 7.0%
Canada's Rank, (from Highest) 3 3 3
Table 5: Bundled Service: International Price Comparison and Canada's Price Difference Relative to Foreign Jurisdictions
Country Bundled Service Level
Level 1: Wireline, Wireless & Fixed Broadband Level 2: Wireline, Fixed Broadband & TV Level 3: Wireline, Wireless, Fixed Broadband & TV
Canada $161.63 $135.60 $185.06
U.S.A. $141.40 -14.3% $145.92 7.1% $196.70 5.9%
Australia n/a n/a $91.85 -47.6% $142.45 -29.9%
U.K. $67.19 -140.5% $45.17 -200.2% $65.27 -183.5%
France n/a n/a $60.55 -123.9% $98.63 -87.6%
Italy n/a n/a $66.94 -102.6% $81.91 -125.9%
Germany $116.68 -38.5% $63.54 -113.4% $127.15 -45.6%
Japan $154.11 -4.9% $151.08 10.2% $198.54 6.8%
Canada's Rank, (from Highest) 1 3 3

Caveats to the Interpretation of the Findings of this Study

As indicated above, the purpose of this Study is to provide a detailed comparative price analysis of telecommunications services in Canada vis-à-vis the US and six other countries. However, there are a number of caveats that should be taken into account by the reader in interpreting the findings of this and previous years’ Studies.

The price comparisons are based on price data collected through a survey conducted in January and February of this year. As prices for telecommunications services are constantly evolving, the prices cited in this Study represent a ‘snapshot’ of prices in time. Also, the price differentials found are highly sensitive to currency fluctuations.

The Canadian prices are based on a survey of service providers in 6 cities, the American prices on 4 cities and prices in the other 6 foreign jurisdictions are based on service providers found in their principal cities. Thus, the prices cited for Canada, US or the international jurisdictions are not meant to be statistically representative of the individual countries as a whole.

Prices in Canada and international jurisdictions are driven by a complex mix of a number of factors: cost of service, competitive positioning, technological advances, consumer behaviour and regulatory frameworks. As wireless technology is constantly improving and consumers demand ever more bandwidth and data caps, service providers are constantly increasing features. In the Study, these changes are reflected by the need to regularly update the definition of service baskets. Hence, price increases in those baskets may in part, simply reflect better service levels offered to consumers.

This Study did not take into account the network technologies deployed in the networks nor the speed or quality of service of those networks. Finally, this Study did not account for any cost of service or socio-economic factors that may be relevant for price differences across different domestic and international jurisdictions. Thus, factors such as population density, terrain and climate have significant impacts on the cost of service. Similarly, socio-economic factors such as affordability indicators (i.e. mobile prices in relation to disposable income), number of handsets per subscriber, number of minutes of usage per subscriber and other factors were not within the scope of this Study.

1. Introduction

This is the 9th (2016) edition of the annual telecommunications services price comparison Study since its inception in 2008. This Study was prepared by Nordicity for the CRTC. The purpose of this Study is to provide a detailed comparative price analysis of telecommunications services in Canada vis-à-vis the US and six other foreign jurisdictions.

As in previous years, telecommunications services in this Study are classified in five main categories, including:

Prices were measured for different pre-defined service baskets under each category. Individual service baskets were defined according to increasing level of service usage and feature availability under each category. The total number of service baskets under each category were established according to the availability of distinct levels of service usage and features offered as well as their associated prices.

In comparison to last year’s Study, no major changes were made with respect to the Study design or the scope of analysisFootnote 4. However, the following additions were made in this Study:

  1. Analysis to show the comparison between Bring Your Own Device (BYOD) and Mobile Wireless Term Contract options (see Section 4.3)
  2. Canadian Voice over Internet Protocol (VoIP) bundle (Voice + Internet) price comparison (see Section 8)
  3. Finally, the following new service providers were added to different service baskets:
    • Fixed Telephony
      • Canada
        • Teksavvy (Montreal, Toronto)
    • Mobile Wireless Telephony
      • Canada
        • Primus (Halifax, Winnipeg, Regina)
        • Chatr (Montreal)
        • Petro Canada (all cities)
        • 7-Eleven Speakout (all cities)
      • US
        • T-Mobile (all cities)
      • Foreign Jurisdictions
        • O2 (London and Berlin)
        • Three (London)
        • Bouygues Telecom (Paris)
    • Mobile Wireless Internet
      • US
        • T-Mobile (all cities)
      • Foreign Jurisdictions
        • O2 (London and Berlin)
        • Three (London)
        • Bouygues Telecom (Paris)
    • VoIP
      • Canada
        • Teksavvy (all cities)
        • Vonage (all cities)
        • Primus (all cities)

This Study is organized as follows: Section 2 describes the Study Design as well as the methodology behind both the practices of data collection and data analysis. Sections 3 to 7 are dedicated to each of the five service categories.

Sections 3 to 7 provide a detailed definition of the service baskets, a description of changes made between last year’s Study and this year’s Study, a list of service providers surveyed in different jurisdictions and a detailed price comparison amongst both Canadian cities as well as between Canada and international jurisdictions in each respective service category. Section 8 provides a comparative analysis of Canadian VoIP bundled services.

2. Methodology

2.1 Service Basket Design

The methodology for the service basket design and prices in this year’s Study has been kept consistent with that used in last year’s Study with the exception of some modifications to reflect the increasing level of consumer usage amongst telecommunications services. These modifications are described below in greater detail.

The price comparison methodology used in this Study is based on a service basket approach where separate telecommunications service baskets are defined on the basis of increasing levels of service usage, features and, where applicable, performance:

The number of defined service basket levels for each of the stand-alone telecom services considered in this Study varies from three to six.

Table 6 below summarizes the service baskets that have been considered in the 2016 Study vis-à-vis last year’s Study. Note that no changes were made in the service basket levels for the Fixed Telephony or Bundled Services.

Table 6: Summary of Service Baskets in 2015’s Study in comparison to 2016’s Study
Fixed Telephony Mobile Wireless Telephony Fixed Broadband Internet Mobile Wireless Internet Bundled Services
2015 2016 2015 2016 2015 2016 2015 2016 2015 2016
Level 1 Level 1 Level 1 Level 1 Level 1 Level 1 Level 1 Level 1 Level 1 Level 1
Level 2 Level 2 Level 2 Level 2 Level 2 Level 2 Level 2 Level 2 Level 2 Level 2
Level 3 Level 3 Level 3 Level 3 Level 3 Level 3 Level 3 Level 3 Level 3
Level 4 Level 4 Level 4 Level 4
Level 5 Level 5 Level 5
Level 6

The three levels of bundled services included were defined as follows:

Consistent with last year’s Study, Level 2 stand-alone service baskets are generally used in each of the bundles. In some cases, however, there are restrictions on the specific service elements that are eligible for bundling discounts. In such cases, eligible service elements are included instead (which can involve including a Level 3 or 4 rather than Level 2 service element). For the Digital TV service component, a ‘basic’ digital television service packageFootnote 6 option is selected for inclusion in the applicable bundles.

The specific service elements included in each service basket are described in the following sections.

2.2 Canadian Price Data Collection

The Canadian price comparisons included in this year’s Study are based on the measurement of prices of pre-defined distinct service baskets, in six Canadian cities (Halifax, Montreal, Toronto, Winnipeg, Regina and Vancouver). Between two to seven services providers per service category were examined in each city, covering stand-alone and bundled service baskets, as applicable for each service provider.

The Canadian price data has been collected from a wide range of telecommunications service providers (TSPs) including incumbent telephone companies (for example: Bell Canada, MTS, SaskTel, and TELUS) and incumbent cable companies (for example: Eastlink, Videotron, Rogers, Shaw, and Cogeco). The Study also includes service price data from four service resellers, amongst them are Primus, PC Mobile, Petro-Canada Mobile and 7-Eleven Speakout. Furthermore, the Study includes services provided by flanker brands such as Koodo, Public Mobile, Chatr, Fido, Mobilicity and Virgin, as well as the ‘new’ (2008) entrants in the mobile market such as Videotron, Eastlink and WINDFootnote 7. Table A.1, in Appendix A provides a list of the Canadian service providers surveyed in this year's Study, broken down by city and by service basket.

City-specific prices for each of the stand-alone and bundled service baskets offered by the service providers listed in Table A.1 (Appendix A) were weighted according to each service provider’s respective estimated subscriber-based market share.Footnote 8 Similarly, in calculating Canada-wide market prices, city-specific prices were aggregated and weighted according to city population. Weighted average prices for each surveyed city and for Canada are provided in Appendix B for each of the service baskets and bundles included in this Study.

In order to maintain consistency with previous years' studies (2011 to 2015), the incumbents' flanker brand service prices were not included in the calculation of the aforementioned city-specific or national aggregate prices. However, Section 4.2 provides an additional analysis of the incumbents' flanker brand prices with incumbents' and new entrants' mobile wireless prices.

For the Mobile Wireless Telephony service analysis, this year’s Study also examined BYOD price discounts in contrast to the other device financing options available in the Canadian market.

The price data collected for this Study was drawn from the surveyed service providers’ websites and, where necessary, supplemented with further clarifications from consumer service representatives (CSRs).Footnote 9 The price data reflects currently advertised prices that are available to new consumers or existing consumers changing service plans. In all cases, the lowest available currently advertised regular or standard price was used to determine price of each service basket. Short-term promotional offers and prices were not taken into account.

2.3 International Price Data Collection

This year’s Study included seven foreign jurisdictions for the purpose of comparing telecommunications service prices with those offered in Canada. These seven jurisdictions included: the US, UK France, Germany, Italy, Japan and Australia. With the exception of the US, the price data was collected for the services available in each country’s largest city.

For the US, the following four cities were selected for collecting price data: Boston, MA; Kansas City, MO; Minneapolis, MN; Seattle, WA. In each case, price data was collected for the services provided by the major service providers in those cities.

Table A.2, in Appendix A provides a list of the international service providers included in the Study by city and service baskets.

To maintain consistency with last year’s Study, the US’s regional brand services prices were not included in the calculation of the US aggregate prices. Accordingly, this year’s Study has excluded the section pertaining to the US’s Incumbent and Regional Service Provider Prices.

For the remaining six jurisdictions, the collected price data corresponds to services provided by incumbent service providers.

For the purpose of comparing international price data, foreign currency prices were converted to Canadian dollars (CAD) using the Bank of Canada’s monthly average exchange for the month of February 2016Footnote 10. The prices were further adjusted for the purchasing power parity (PPP) differences between countries using the OECD’s PPP comparative price level indices for February, 2016.Footnote 11

2.4 Summary of Changes in Methodology

Relative to the previous year, the changes in methodology and updates made in this Study are outlined below:

Further details and the rationale with respect to above changes are provided in the respective sections of the five service categories.

3. Fixed Telephony Service

3.1 Fixed Telephony Service Baskets

Consistent with last year’s Study, the following service element charges were considered for Fixed Telephony service baskets:

It should be noted that one-time service charges, such as installation and activation fees were excluded from the comparison.

Fixed Telephony service basket definitions in this year’s Study are identical to those used in last year’s Study with the exception of the removal of VoIP plans from our analysisFootnote 12. Accordingly, the three Fixed Telephony service baskets included in this Study were defined as below:

Table B.1 in Appendix B provides a detailed summary of the service elements used for the fixed wireline telephony price comparison.

3.2 Canadian Fixed Telephony Service Prices

Figure 1 (Canadian Fixed Telephony Service Prices) below, provides an overview of the changes in Level 1, 2 and 3 service basket prices since 2015. On average, Fixed Telephony prices portray a decreasing trend - overall prices decreased by 2.8% (Level 1), 7.1% (Level 2), and, 6.2% (Level 3). The decreases are reflected in all surveyed cities, except Halifax (Levels 1-3), Vancouver (Level 1) and Winnipeg (Level 1).

Figure 1: Year-over-Year (YoY) Change in Canadian Fixed Telephony Prices (2015-2016)

Figure 1 – Fixed Telephony Level 1: horizontal bar chart for the Year-over-Year Change in Canadian Fixed Telephony Prices (2015-2016)

Figure 1 – Fixed Telephony Level 2: horizontal bar chart for the Year-over-Year Change in Canadian Fixed Telephony Prices (2015-2016)

Figure 1 – Fixed Telephony Level 3: horizontal bar chart for the Year-over-Year Change in Canadian Fixed Telephony Prices (2015-2016)

Figure 2 below, provides a summary of the average Canadian monthly prices for each of the three Fixed Telephony service baskets for the period of 2011 to 2016. Detailed Fixed Telephony prices for the period of 2008 to 2016 by service basket and surveyed cities (i.e. Halifax, Montreal, Toronto, Winnipeg, Regina and Vancouver) are provided in Figure C.1 and Table C.1 in Appendix C.

Figure 2: Average Canadian Fixed Telephony Prices by Service Baskets (2011-2016)

Figure 2 – horizontal line chart for the Average Canadian Fixed Telephony Prices by Service Baskets (2011-2016)

Key trends in Canadian Fixed Telephony prices for three service baskets over the last six years are summarized below.

3.3 International Fixed Telephony Service Prices

When comparing international prices for Fixed Telephony services, many pricing variables were taken into account. These variables are described below:

Figure 3 below, provides a year-over-year representation of changes in international Fixed Telephony prices from 2015 to 2016.

Figure 3: Change in International Fixed Telephony Prices for Level 1 to 3 Service Baskets Since 2015

Figure 3 – Fixed Telephony Level 1: horizontal bar chart for the Change in International Fixed Telephony Prices Since 2015

Figure 3 – Fixed Telephony Level 2: horizontal bar chart for the Change in International Fixed Telephony Prices Since 2015

Figure 3 – Fixed Telephony Level 3: horizontal bar chart for the Change in International Fixed Telephony Prices Since 2015

Level 1 service basket prices showed an increasing trend in the case of foreign jurisdictions with the exception of France. The major increases in Level 1 prices within the last year were in Japan (15%), Germany (11%) and the US (9%). Most of these price variations are attributable to differences in the currency exchange rates and PPP adjustment factors relative to the previous year. For example, in original currencies, the Level 1 price in Japan actually decreased by 2% and in Germany the increase was only 4% over the past year.

In the Level 2 and Level 3 service baskets, the trend in price change over the past year was mixed. For example, Level 2 prices increased in Germany (9%), UK (10%), and, Australia (5%) whereas Level 2 prices decreased in Italy (12%), US (9%) and Japan (1%). Level 3 prices increased in Germany (23%), France (21%), US (6%), and Australia (2%) whereas Level 3 prices decreased in Italy (19%), Japan (6%) and UK (1%). Level 2 and Level 3 price variations in foreign jurisdictions are also attributable to a difference in currency conversion rates and PPP adjustment factors relative to the previous year. For example, in original currency, prices in Germany only increased by 1.7% (Level 2) and 14.5% (Level 3).

Figure 4 below, provides a comparison of current average Fixed Telephony prices between Canada and the seven foreign jurisdictions for each of the three service baskets. All prices are expressed in PPP-adjusted Canadian dollars and exclude taxes (e.g., VAT or GST). Figure D.1 and Table D.1 in Appendix D provide detailed historical international wireline service basket information for the period of 2008 to 2016.

Figure 4: 2016 International Fixed Telephony Price Comparison (PPP-adjusted CA$)

Figure 4 – Fixed Telephony Level 1: horizontal bar chart for the 2016 International Fixed Telephony Price Comparison

Figure 4 – Fixed Telephony Level 2: horizontal bar chart for the 2016 International Fixed Telephony Price Comparison

Figure 4 – Fixed Telephony Level 3: horizontal bar chart for the 2016 International Fixed Telephony Price Comparison

The key findings are outlined below:

4. Mobile Wireless Telephony Service

4.1 Mobile Wireless Telephony Service Baskets

For Mobile Wireless Telephony, this year’s Study included the following six service baskets:

In relation to the previous year, the following changes were introduced to the current Study:

In summary, the following Mobile Wireless Telephony service element charges, where applicable, are considered for price comparison purposes:

The Study excludes several one-time charges such as activation fees, upfront handset or device costs, and roaming charges. However, section 4.3 provides a detailed analysis of BYOD (Bring Your Own Device) in contrast to the free device with term contract options available to consumers in Canada. Section 4.5 provides a detailed pricing comparison of roaming services available to Canadian and American consumers when travelling to the US and Canada, respectively.

Table B.2 provides a detailed summary of the service elements used for the ‘Mobile Wireless Telephony and text messaging’ service baskets as well as the usage assumptions.

For each of the six service baskets, prices are measured using standard mobile service plan rates offered by surveyed WSPs. This year’s Study was primarily based on post-paid plans. Pre-paid plans were only included in the comparison if post-paid price plans were not available for a particular service basket. In addition, among the pre-paid plans selected, monthly device costs were added in order to reflect the implicit device cost present in post-paid plans. This additional device cost was comparable to the particular service provider’s least expensive lite device amortized over a twenty-four-month periodFootnote 18.

Many WSPs offer post-paid plans on a no-contract or term-contract basis (the most common term being 24 months in the latter case). Term-contract service plans typically provide a means for subscribers to purchase a new handset or device at a discounted price. Such plans generally include an implicit or explicit handset cost recovery component in the service plan price. No-contract term, bring-your-own-device or SIM card only, service plans are also often available at lower price points given they do not include a handset cost recovery component. Consistent with previous years' studies, as applicable, the post-paid service plan prices collected for this Study are based on term-contract service plans.

4.2 Canadian Mobile Wireless Telephony and Prices

Figure 5 provides a historical view of the five Canadian Mobile Wireless Telephony service basketsFootnote 19.

Figure 5: Average Canadian Mobile Wireless Telephony Prices by Service Baskets (2008-2016)

Figure 5 – horizontal line chart for the Average Canadian Mobile Wireless Telephony Prices by Service Baskets (2008-2016)

Mobile Wireless Telephony prices showed mixed trends across Canadian cities. For example, Level 1 prices increased and Level 3 prices decreased in six cities within the past year. However, in Levels 2, 4 and 5 the trend was mixed: prices increased in some cities and decreased in others. Year-over-Year (YoY) average price changes in the six Canadian cities are presented in Figure 6 below.Footnote 20

Figure 6: YoY Change in Canadian Mobile Telephony Prices (2015-2016)

Figure 6 – Mobile Wireless Telephony Level 1: horizontal bar chart for the Year-over-Year Change in Canadian Mobile Telephony Prices (2015-2016)

Figure 6 – Mobile Wireless Telephony Level 2: horizontal bar chart for the Year-over-Year Change in Canadian Mobile Telephony Prices (2015-2016)

Figure 6 – Mobile Wireless Telephony Level 3: horizontal bar chart for the Year-over-Year Change in Canadian Mobile Telephony Prices (2015-2016)

Figure 6 – Mobile Wireless Telephony Level 4: horizontal bar chart for the Year-over-year Change in Canadian Mobile Telephony Prices (2015-2016)

Figure 6 – Mobile Wireless Telephony Level 5: horizontal bar chart for the year-over-Year Change in Canadian mobile Telephony Prices (2015-2016)

Major price changes occurred in Regina and Montreal, where Regina’s Level 2 price decreased by 12.9% and its Level 5 price increased by 25.2%. Montreal’s prices significantly decreased for Level 3 (24.1%) and Level 5 (16.1%)Footnote 21.

Figure C.2 and Table C.2, in Appendix C, provide a detailed overview of the Canadian wireless telephony and TMS service baskets prices for 2008-2016. As illustrated in Table C.2, the trends by city are similar to that of the national average for Levels 1-4. In the case of Level 5, Regina showed a significant increase in price (25%). Since major cities - Toronto and Montreal showed a decrease of over 10%, the national average also decreased by 10.2%.

4.2.1 Comparison of Incumbent and New Entrant Prices

With respect to the price difference between Mobile Wireless Telephony incumbents and new entrant offerings, the trends were generally similar to those a year ago. Since no new entrants were found in Winnipeg and Regina and there is only one new entrant in remaining cities: Eastlink (Halifax), Videotron (Montreal) and Wind (Toronto and Vancouver), the new entrant prices represent a single service provider’s price.

This comparison is based on the unweighted average of the price offerings of the three incumbents (TELUS, Rogers and Bell) for each city. Table 7 below, provides a summary of the price differencesFootnote 22.

Table 7: 2016 Mobile Wireless Price Comparison - Incumbent versus New Entrant
City Service Provider Type Mobile Wireless Service Level
Level 1 Level 2 Level 3 Level 4 Level 5 Level 6 Average (City)
Halifax Incumbents $38.76 $48.76 $77.10 $87.10 $108.76 $252.10 $102.10
New Entrant $30.55 $45.55 $70.55 $80.55 $110.55 $220.55 $93.05
Difference (%) -21.19% -6.59% -8.49% -7.52% 1.64% -12.51% -8.86%
Montreal Incumbents $40.57 $44.40 $62.40 $70.40 $78.73 $190.40 $59.30
New Entrant $41.95 $41.95 $54.95 $64.95 $84.95 n/a $57.75
Difference (%) 3.41% -5.52% -11.94% -7.74% 7.90% n/a -2.61%
Toronto Incumbents $42.17 $51.50 $80.00 $90.00 $110.00 $255.00 $74.73
New Entrant $25.00 $25.00 $35.00 $35.00 $50.00 n/a $34.00
Difference (%) -40.71% -51.46% -56.25% -61.11% -54.55% n/a -54.50%
Vancouver Incumbents $42.17 $51.50 $80.00 $90.00 $110.00 $255.00 $74.73
New Entrant $25.00 $25.00 $35.00 $35.00 $50.00 n/a $34.00
Difference (%) -40.71% -51.46% -56.25% -61.11% -54.55% n/a -54.50%
Average (Level) Incumbents $40.92 $49.04 $74.87 $84.37 $101.87 $252.10 $77.72
New Entrant $30.63 $34.38 $48.88 $53.88 $73.88 $220.55 $54.70
Difference (%) -25.15% -29.91% -34.72% -36.15% -27.48% -12.51% -29.62%

No New Entrant was found in the other two cities: Winnipeg and Regina.

Only one New Entrant was found in the above four cities - Eastlink (Halifax), Videotron (Montreal), Wind (Toronto and Vancouver).

Telus, Rogers and Bell offer same price plan for Vancouver and Toronto.

New entrant prices for Level 6 were available for Halifax. Therefore, Level 6 average reflect prices for Halifax only.

Incumbents' prices represent the unweighted averages.

If new entrant price was not available for a city, it was not included in the city average.

If new entrant price was not available for a service level, it was not included in the level average.

Overall, new entrants’ prices were lower than the incumbents’ by a range of 25% to 36% for service basket Levels 1, 2, 3, 4 and 5. On average, the price differential decreased from last year, except for Level 2. For example, 29% versus 25% (Level 1), 37% versus 35% (Level 3), 38% versus 36% (Level 4) and 50% versus 27% (Level 5). For Level 2, the difference increased from 26% to 30%Footnote 23.

4.2.2 Comparison of Incumbents and Incumbent Flanker Brand Prices

This section further expands the analysis by including incumbents’ flanker brands such as Fido (Rogers), Chatr (Rogers), Mobilicity (Rogers), Virgin (Bell), Public Mobile (TELUS) and Koodo (TELUS). Chatr is only available in three cities (Montreal, Toronto and Vancouver), and Mobilicity was only available in Toronto and Vancouver. Table 8 below, provides a summary of the price comparison between incumbents versus flanker brands and flanker brands versus new entrants for service baskets Level 1 to 5. Flanker brand price plans for service Level 6 (family basket) were not found, and are therefore not included in the following comparison.

Overall, flanker prices are 14% lower than those of incumbents and new entrants’ prices were 20% lower than those of flanker brands. In Halifax, on average, there was no price difference between the flanker brands and the new entrants. However, for the higher Levels 3 to 5, new entrants’ prices were higher than those of the flanker brands. Similarly, in Montreal new entrants’ prices were higher relative to flanker brands. In all other cases, new entrants’ prices were lower than those of flanker brands.

Table 8: Mobile Wireless Price Comparison - Incumbent versus Flanker and Flanker versus New Entrant
City Service Provider Type Mobile Wireless Service Basket Level
Level 1 Level 2 Level 3 Level 4 Level 5 Average (City)
Halifax Incumbents (I) $38.76 $48.76 $77.10 $87.10 $108.76 $72.10
Flanker (F) $42.10 $50.10 $62.93 $77.93 $101.68 $66.95
New Entrant (N) $30.55 $45.55 $70.55 $80.55 $110.55 $67.55
Difference: (F) vs (I) 8.60% 2.73% -18.38% -10.52% -6.51% -7.14%
Difference: (N) vs (F) -27.43% -9.08% 12.11% 3.36% 8.72% 0.90%
Montreal Incumbents (I) $40.57 $44.40 $62.40 $70.40 $78.73 $59.30
Flanker (F) $36.14 $41.26 $51.24 $64.24 $77.80 $54.14
New Entrant (N) $41.95 $41.95 $54.95 $64.95 $84.95 $57.75
Difference: (F) vs (I) -10.92% -7.07% -17.88% -8.75% -1.19% -8.71%
Difference: (N) vs (F) 16.08% 1.67% 7.24% 1.11% 9.19% 6.68%
Toronto Incumbents (I) $42.17 $51.50 $80.00 $90.00 $110.00 $74.73
Flanker (F) $36.20 $43.40 $60.24 $73.86 $89.76 $60.69
New Entrant (N) $25.00 $25.00 $35.00 $35.00 $50.00 $34.00
Difference: (F) vs (I) -14.15% -15.73% -24.70% -17.94% -18.40% -18.79%
Difference: (N) vs (F) -30.94% -42.40% -41.90% -52.61% -44.30% -43.98%
Vancouver Incumbents (I) $42.17 $51.50 $80.00 $90.00 $110.00 $74.73
Flanker (F) $36.20 $43.40 $60.24 $73.86 $89.76 $60.69
New Entrant (N) $25.00 $25.00 $35.00 $35.00 $50.00 $34.00
Difference: (F) vs (I) -14.15% -15.73% -24.70% -17.94% -18.40% -18.79%
Difference: (N) vs (F) -30.94% -42.40% -41.90% -52.61% -44.30% -43.98%
Average (Level) Incumbents (I) $40.92 $49.04 $74.87 $84.37 $101.87 $70.22
Flanker (F) $37.66 $44.54 $58.66 $72.47 $89.75 $60.62
New Entrant (N) $30.63 $34.38 $48.88 $53.88 $73.88 $48.33
Difference: (F) vs (I) -7.96% -9.18% -21.65% -14.11% -11.90% -13.67%
Difference: (N) vs (F) -18.68% -22.82% -16.69% -25.66% -17.69% -20.28%

No New Entrants were found in: Winnipeg and Regina and only one New Entrant was found in the following four cities - Eastlink (Halifax), Videotron (Montreal), Wind (Toronto and Vancouver).

Telus, Rogers and Bell offer the same price plans for Vancouver and Toronto.

Five flanker brands included Bell Virgin, Rogers Fido, Telus Koodo, Rogers Chatr, Mobilicity.

Incumbents' prices represent the unweighted averages.

If New Entrant prices was not available for a city, they were not included in the city average.

If New Entrant prices were not available for a service level, they were not included in the level average.

4.2.3 Comparison of Incumbent and Reseller or MVNO Prices

Table 9 provides a price comparison between incumbent and resellers/MVNOs by each service basket level. Consistent with previous year’s Study, the prices reflect the national average based on the unweighted average in four cities (Halifax, Montreal, Toronto and Vancouver).

Table 9: Mobile Wireless Price Comparison - Incumbent versus Resellers/MVNOs
Service Provider Type Mobile Wireless Service Basket Level
Level 1 Level 2 Level 3 Level 4 Level 5 Average (Level)
Incumbents $40.92 $49.04 $74.87 $84.37 $101.87 $70.22
Resellers/MVNO $26.98 $46.73 $64.21 $74.21 $104.21 $63.27
Difference (%) -34.06% -4.71% -14.25% -12.05% 2.29% -9.90%

No reseller/MVNO was found for Level 6 (Family Basket).

Resellers/MVNO include Primus, PC Mobile, Petro Canada Mobile and 7-Eleven-Speakout.

For service baskets level 3, 4 and 5 only one MVNO was found - PC Mobile.

Level 3 excludes two resellers/MVNOs due to abnormally high prices: Primus ($115.62) and Petro-Canada ($141.25).

Incumbents' and Resellers/MVNO prices represent their respective unweighted averages.

Surveyed resellers/MVNOs include Primus, PC Mobile, Petro-Canada Mobile, and 7-Eleven. Primus and Petro-Canada were excluded from the service basket Level 3 average due to their abnormally high prices (Primus: $115.62 and Petro Canada Mobile: $141.25). The inclusion of Primus’ and Petro-Canada’s prices in the resellers/MVNOs would have distorted the Level 3 average and made the survey results less representative. For Level 4 and 5, a price for only one reseller/MVNO (PC Mobile) was available.

Overall, the price differential between incumbents and resellers/MVNOs increased in comparison to last year. For example, the difference in Level 1 increased from -14% last year to -34% this year. For Level 4 the difference increased from -9% to -12%. Last year resellers/MVNOs prices were higher by 22% in the case of Level 5, as compared to 2% this year. In the case of Levels 2 and 3, the price difference decreased from -25% to -5% and -21% to -14%, respectively.

4.3 Mobile Wireless Term Contract versus Bring Your Own Device

This section examines Bring Your Own Device (BYOD) discounts and device financing approaches in the Canadian market.

Traditionally, Canadian wireless service providers offered a handset (device) at no cost or with a certain upfront cost for a fixed term contract. Pursuant to the Canadian Wireless Code, WSPs may collect a contract cancellation fee for a maximum period of 24 months. Accordingly, the service providers mostly offer the maximum 24-month term, although some also offer one-year terms.

In recent years, service providers have also offered consumers the option to bring their own device. With a BYOD option, consumers are not subject to a fixed contract term and many providers offer discounts on post-paid plans - ranging from approximately $10.00 to $15.00 per month. Pre-paid plans imply that the consumer is bringing their own device.

In general, the incumbents and their flanker brands primarily offer two pricing models for BYOD options. The first of these is based on device distinctions, whereby premium devices (such as iPhone 6s, Samsung Galaxy N5 – priced over $700) are offered at a higher monthly rate than lite devices (such as a smartphone priced below $400) on a post-paid plan. Meanwhile, post-paid plans that include a lite device are often offered at a higher or equal monthly rate to post-paid plans - available to consumers who bring their own device.

The second pricing model is referred to as a ‘tab model’ whereby consumers can select a smartphone of their choice and pay one of a number of monthly rates that cover the cost of the particular device in addition to plan costs. The lower the monthly rate consumers select, the higher the upfront cost of the device. In this case, consumers are often able to select from a range of up-front costs. Other providers offer consumers an additional discount per month based on a percentage of monthly plan cost.

Table E.1 in Appendix E provides an overview of the BYOD versus Fixed Contract options offered by the Canadian wireless service providers. The comparison is based on two broad categories of devices: lite devices and premium devices. The offers by different service providers shown in the Table E.1 were selected from a range of different options advertised by the service providers. The selection was designed to fairly represent the two broad categories of the respective service provider.

Notable points, illustrated in Table E.1 (Appendix E), include:

To understand the underlying economics, key questions raised (regarding BYOD versus fixed term plan options) from the perspective of both consumer and the service provider are:

For this analysis, scenarios included a premium device (iPhone 6s) and the following key factors:

Based on the six factors discussed above, Table 10, below, provides a summary of the comparison between a BYOD option versus a Fixed Term Contract, providing the perspectives of both the consumer and service provider.

Table 10: BYOD versus 2-Year Contract Option Analysis
Option Considerations Consumer Perspective Service Provider (SP) Perspective Remarks
A: 24 Month Fixed Term Option
Device Price (iPhone 6s) - $777.75 SP buys at 15% discount (wholesale)
Upfront Fee paid by consumer $400.00 ($400.00) Upfront fee paid by consumer
Net Cost (24 Month Fixed Term) $400.00 $377.75
B: BYOD
Device Price (iPhone 6s) $915.00 - Consumer buys at retail price
Monthly Plan Savings / discount ($295.36) $295.36 Present worth of $12.5 per month
Additional Ordering Cost - $250.00 Based on 1.5% monthly churn
Net Revenue Loss - $91.70 Based on 1.5% monthly churn
Net Cost (BYOD) $619.64 $637.06
Cost Difference (A minus B) ($219.64) ($259.31) 24 Month Plan versus BYOD
Difference (%) (54.91%) (68.65%)

According to the above analysis, BYOD appears to be more expensive from the perspective of both the service providers and the consumer. The consumer’s cost differential is 55%, which may reduce to break-even depending upon the amount of upfront fees and discounts that are charged on the consumer’s monthly rate plan. The service provider’s cost differential is slightly higher (69%). For service providers, the critical factors include the effect on monthly churn and its financial impacts in terms of ordering costs and revenues. Our analysis also indicates that with a 24-month contract term, both the consumer and service provider almost equally share the cost of the device ($400 versus $378), which may vary depending on the amount of upfront fee paid by the operator.

This analysis does not account for qualitative factors such as brand loyalty, quality of customer service, flexibility and the variety of choices that may be available to a consumer with or without BYOD option. It is pertinent to note that many consumers may not opt to purchase a new device in lieu of reusing an older device.

4.4 International Mobile Wireless Telephony

As noted in previous studies, there are a number of important pricing differences that should be considered when comparing Canadian and foreign Mobile Wireless Telephony prices.

Figure 7 below, provides a comparison of current Mobile Wireless Telephony prices between Canada and the surveyed seven foreign jurisdictions for each of the six service baskets. All prices are expressed in PPP-adjusted Canadian dollars and exclude retail sales taxes.

Canadian Mobile Wireless Telephony prices are, on average, higher than those in other international jurisdictions. For example, Canadian average prices are the highest for Level 1, the second highest for Levels 3-6 and the third highest for Level 2. The UK ranked lowest in Levels 3-6, Germany in Level 1 and Italy in Level 2.

Figure 7: 2016 International Mobile Wireless Telephony Price Comparison PPP-adjusted CD

Figure 7 - Mobile Wireless Telephony Level 1: horizontal bar chart for the 2016 International Mobile Wireless Telephony Price Comparison

Figure 7 – Mobile Wireless Telephony Level 2: horizontal bar chart for the 2016 International Mobile Wireless Telephony Price Comparison

Figure 7 – Mobile Wireless Telephony Level 3: horizontal bar chart for the 2016 International Mobile Wireless Telephony Price Comparison

Figure 7 – Mobile Wireless Telephony Level 4: horizontal bar chart for the 2016 International Mobile Wireless Telephony Price Comparison

Figure 7 – Mobile Wireless Telephony Level 5: horizontal bar chart for the 2016 International Mobile Wireless Telephony Price Comparison

Figure 7 – Mobile Wireless Telephony Level 6: horizontal bar chart for the 2016 International Mobile Wireless Telephony Price Comparison

Figure D.2 and Table D.2, in Appendix D, provide a detailed historical account of international Mobile Wireless prices for the period of 2008 to 2016 for each country and basket, as applicable.

Figure 8 below, provides an overview of the changes in the international Mobile Wireless prices since last year. All countries - except France (Levels 1, 4 and 5), Japan (Level 1 and 3), Italy, Germany, Australia (Level 1), showed a decrease in prices over the past year. The greatest price movement was in Level 3 prices ranging between -12.4% (Canada) and -55.8% (Australia). For Levels 4 and 5, the most significant decrease was in Australia and the UK. Canadian prices also decreased for service baskets 2, 4, and 5, but at a relatively low rate.

Figure 8: Year-over-Year (YoY) Change in International Mobile Wireless Telephony Prices (2015-2016)

Figure 8 – Mobile Wireless Telephony Level 1: horizontal bar chart for the year-over-Year Change in International Mobile Wireless telephony Prices (2015-2016)

Figure 8 – Mobile Wireless Telephony Level 2: horizontal bar chart for the year-over-Year Change in International Mobile Wireless telephony Prices (2015-2016)

Figure 8 – Mobile Wireless Telephony Level 3: horizontal bar chart for the year-over-Year Change in International Mobile Wireless telephony Prices (2015-2016)

Figure 8 – Mobile Wireless Telephony Level 4: horizontal bar chart for the year-over-Year Change in International Mobile Wireless telephony Prices (2015-2016)

Figure 8 – Mobile Wireless Telephony Level 5: horizontal bar chart for the year-over-Year Change in International Mobile Wireless telephony Prices (2015-2016)

4.5 Summary of Price Changes in Mobile Wireless Telephony

In this section, we summarize the reasons for the year-over-year price changes in the Mobile Wireless Telephony service baskets, both in Canada and internationally. This year’s Study was based on post-paid service plans. However, pre-paid plans were included in the comparison if there were no post-paid plans offered by a service provider within a particular service basket. This approach was based on the following factors:

4.6 Canada-US Roaming Prices

To provide an overview of the roaming costs for a Canadian visiting the US and vice versa, rates for voice, text and data roaming were also collected in the survey. The survey included Canadian incumbents, incumbent flanker brands and new entrants who provide US roaming services. Likewise, US incumbents offering roaming services in Canada were also included. There is a wide range of roaming options offered by Canadian as well as US service providers. To ensure consistency with the previous year’s Study, this analysis was limited to the two most common roaming options for voice, text and data: (a) Pay-As-You-Go rates and (b) Stand-alone Add-on package.

Table 11 below, provides the comparison of the Pay-As-You-Go option. With respect to the pricing of the Canadian incumbents and flanker brandsFootnote 26, the roaming rates have declined on a year-over-year basis. For example, voice roaming rates declined from $1.49 to $1.20 (incumbents) and $1.23 to $1.02 (flanker). Similar trends were found for text and data in the case of the US incumbents. Canadian resellers’ voice, text and data prices were not included in the previous year’s Study.

In the case of the US incumbents, rates also decreased for voice, text and data. Overall, the two countries show a decreasing trend in Pay-As-You-Go roaming rates.

Table 11: Base Pay-As-You-Go Roaming Rates
Services Canadian Carriers US Carriers
Incumbents Flankers New Entrants Resellers Incumbents
Voice (per minute) $1.20 $1.02 $0.32 $1.48 $1.08
Text (per text) $0.61 $0.44 $0.23 $0.68 $0.41
Data (per MB) $3.52 $3.75 $0.40 $3.00 $5.51

The above roaming rates are Pay-As-You-Go.

Canadian Carriers' roaming rates (in Canadian $s) are for their customers while in the US.

US Carriers' roaming rates (in PPP-adjusted Canadian $s) are for their customers while in Canada.

Table 12 below, provides a comparison of Stand-alone Add-on roaming rates between Canadian and US service providers. US implicit voice rates slightly increased (from $0.27 to $0.31 per minute) and implicit data rates increased (from 0.52 to 0.74 per MB). In the case of Canadian carriers, the incumbent’s implicit voice and text rates have increased in the past year. For example, voice per minute increased from $0.44 to $0.63 and text message from $0.10 to $0.14 per text. However, Canadian carrier data rates significantly decreased from $0.71 to only $0.11 per MB.

Table 12: Add-on Roaming Package Stand-Alone and Bundles Roaming Rates
Services Canadian Carriers U.S. Carriers
Incumbents Flankers New Entrants Incumbents
Average Add-on Package Price:
Stand-alone Voice Add-on $25.00 $12.50 $20.00 $6.82
Stand-alone Text Add-on $7.00 $11.67 $15.00 n/a
Stand-alone Data Add-on $12.50 $7.50 $20.00 $40.97
Implicit Usage Price:
Voice (per minute) $0.63 $0.20 $0.20 $0.31
Text (per text) $0.14 $0.03 $0.03 n/a
Data (per MB) $0.11 $0.23 $0.20 $0.74

The above are unweighted average of the lowest cost stand-alone add-on package offered by the carriers.

Canadian Carriers' roaming rates (in Canadian $s) are for their customers while in the US.

US Carriers' roaming rates (in PPP-adjusted Canadian $s) are for their customers while in Canada.

Implicit prices are per minute rate based add-on package price divided by the corresponding usage allowance, as applicable.

The three major Canadian incumbents recently introduced unlimited rates on a daily basis, specifically targeting travelers. The details are provided in Table 13 below:

Table 13: Canadian Unlimited US Roaming - Daily Package
Daily Package Rogers Bell TELUS
Plan Name New Plan Roam Better US Easy Roam
Price $5.00 $5.00 $7.00
Voice Unlimited 1000 Plan cap
Text Unlimited Unlimited Plan cap
Data Allowance (MB) Plan Cap 100 MB Plan cap
Data Overage Rate (per/MB) Plan Cap Plan restarts $5.00

5. Fixed Broadband Internet Service

5.1 Fixed Broadband Internet Service Baskets

This year’s Study includes the following five Fixed Broadband Internet service baskets:

In the 2015 Study, the Level 1 service basket represented < 3 Mbps prices. However, this service basket has been updated to reflect more common basic level service offerings currently available in the market. In 2016, only service providers in two cities (Halifax and Regina) currently advertise plans that offer <3 Mbps download speed. With the current market trends it can reasonably be assumed that there will not be a significant demand for <3 Mbps service in the future in the six major Canadian cities. In light of these trends, for the purposes of the current Study, Level 1 was redefined to represent prices for service speeds of equal to, or exceeding 3 Mbps and less than or equal to 9 Mbps.

The market trend also indicated that many Fixed Broadband Internet service providers in Canada (e.g. Bell, Eastlink, Videotron), as well as abroad, offer download speeds of more than 100 MbpsFootnote 30, with a data usage limit of 500 GB. In certain cities such as Toronto as well as in the metro areas of the US, and the other 6 foreign jurisdictions, download speeds of up to 1GB are also available. Therefore, the new service basket Level 5 has been added to this Study to represent prices for service speed over 100 Mbps.

The changes in service definition of each basket level since 2010 are summarized as follows:

Table 14: Summary of Fixed Broadband Internet Service Baskets
Basket 2010 2011 2012 - 2015 2016
Level 1 < 1.5 Mbps < 1.5 Mbps < 3 Mbps 3 - 9 Mbps
Level 2 2 – 9 Mbps 2 – 9 Mbps 4 – 15 Mbps 10 – 15 Mbps
Level 3 10 – 19 Mbps 10 – 19 Mbps 16 – 40 Mbps 16 – 40 Mbps
Level 4 - > 20 Mbps > 40 Mbps 41 – 100 Mbps
Level 5 - - - > 100 Mbps

Consistent with last year’s Study, this year’s Study takes into account the modem rental fees as part of the price data for Fixed Broadband Internet service baskets in light of the fact that these rental fees are often mandatory. In other cases, where consumers are required to purchase a modem, it is assumed that the cost of the modem is amortized over 24 months. However, one-time installation or activation fees are excluded.

As noted in previous year’s Study, some ISPs apply data caps to their Fixed Broadband Internet plans. These caps are generally applied on a monthly usage basis (GB/month), and overage fees are charged ($/GB) for any additional data usage. Amongst the ISPs surveyed for this Study, only those in Canada, Australia and the US apply data caps, whereas none of the ISPs surveyed in Japan, Italy, France, Germany and the UK applied data caps.

In addition, for each of the Fixed Broadband Internet service baskets, plans with the lowest advertised rates that fulfill the data usage assumptions adopted for the defined service baskets were selected.

5.2 Canadian Fixed Broadband Internet Service Prices

Figure 9 below provides an overview of the average price trend (2011-16) for Levels 1 to 4 of the Fixed Broadband Internet services in CanadaFootnote 31.

The key trends are:

Figure 9: Average Price Trend of Fixed Broadband Internet Service Baskets in Canada for the period 2011-2016Footnote 32

Figure 9 – horizontal line chart for the Average Price Trend of Fixed Broadband Internet Service Baskets in Canada for the period 2011-2016

Figure C.3 and Table C.3 in Appendix C provide a more detailed historical overview of Canadian broadband Internet service price for the period 2008 to 2016 as applicable, for each of the five broadband service baskets.

5.2.1 Comparison of Incumbent and Reseller ISP Prices

While the previous section discussed the average prices of both incumbents and resellers, this section presents price differences between Canadian Fixed Broadband Internet incumbents and resellers. The resellers include Primus and TekSavvyFootnote 34.

Table 15 below, provides a summary of the differentials in the prices offered by the incumbents and the two resellers. This comparison is based on the minimum available prices offered by incumbents and resellers for each service basket level in each of the six major Canadian cities.

Table 15: Canadian Fixed Broadband Internet Prices – Incumbents versus Resellers
Service Provider Fixed Broadband Internet Service Basket
Level 1 Level 2 Level 3 Level 4 Level 5
Incumbent $52.89 $61.30 $62.78 $79.13 $112.47
Reseller $34.05 $36.10 $44.64 $66.10 n/a
Difference (%) -35.61% -41.11% -28.89% -16.47% n/a

Based on unweighted average of minimum incumbent’s and reseller's price in each city. Resellers include Primus and TekSavvy.

The price differential by each city is provided in Table C.4 in Appendix C. Some of the key findings are:

5.3 International Fixed Broadband Internet Service Prices

This section provides an international comparison of Fixed Broadband Internet prices offered by operators in each of the five service baskets. Figure 10 below provides an overview of the year over year changes (2015-2016) in average prices (Level 1 – 4).

Figure 10: Current Changes in International Fixed Broadband Internet Prices (2015-2016)

Figure 10 – horizontal bar chart for the Current Changes in International Fixed Broadband Internet Prices (2015-2016)

Figure D.3 and Table D.3 in Appendix D provide a detailed historical overview of the international Fixed Broadband Internet prices for the period of 2008 to 2016, for each of the five service baskets.

Figure 11 below, provides a 2016 ranking of Canada relative to seven foreign jurisdictions for the five Fixed Broadband Internet service baskets.

Figure 11: 2016 International Fixed Broadband Internet Price Comparison PPP-adjusted CDN$

Figure 11 – Fixed Broadband Level 1: horizontal bar chart for the 2016 International Fixed Broadband Internet Price Comparison

Figure 11 – Fixed Broadband Level 2: horizontal bar chart for the 2016 International Fixed Broadband Internet Price Comparison

Figure 11 – Fixed Broadband Level 3: horizontal bar chart for the 2016 International Fixed Broadband Internet Price Comparison

Figure 11 – Fixed Broadband Level 4: horizontal bar chart for the 2016 International Fixed Broadband Internet Price Comparison

Figure 11 – Fixed Broadband Level 5: horizontal bar chart for the 2016 International Fixed Broadband Internet Price Comparison

The key findings are:

Table 16 below, provides an overview of the average download/upload speeds and data caps available in Canada versus the US and six other countries. This comparison is based on the unweighted average of the advertised speeds and data caps of the surveyed service providers for each basket level.

With respect to the minimum and maximum average ranges between countries, the difference was greater within higher service basket levels. For example, within Level 4, the download speed difference was approximately 75 Mbps (151%) ranging from 57.2 Mbps (Canada) to 125.3 Mbps (Japan). For service Level 2, the difference in download speed was 4.5 Mbps (41%) ranging from 10.8 Mbps (Italy) and 15.2 Mbps (US).

For Levels 2 and 3, Canada ranked amongst the top three in download speed averages. However, for Level 4, Canada placed amongst the bottom three with respect to download speed.

Table 16: Current International Fixed Broadband Internet Speed Comparison
Average Speeds (2016) Canada U.S.A. Australia U.K. France Italy Germany Japan
Level 1 Download 6.06 8.57 8.00 n/a n/a n/a 10.00 n/a
Upload 0.87 0.97 n/a n/a n/a n/a 0.60 n/a
Data Caps 87.22 250.00 100.00 n/a n/a n/a n/a n/a
Level 2 Download 12.50 15.20 12.00 n/a 15.00 9.50 n/a 12.00
Upload 2.49 1.13 n/a n/a n/a 1.19 n/a 2.00
Data Caps 137.00 250.00 200.00 n/a n/a n/a n/a n/a
Level 3 Download 24.25 21.60 30.00 17.00 n/a 20.00 20.50 40.00
Upload 5.34 1.20 2.00 n/a n/a 10.00 1.70 2.00
Data Caps 198.18 250.00 150.00 n/a n/a n/a n/a n/a
Level 4 Download 57.22 63.75 50.00 54.67 100.00 100.00 75.00 50.00
Upload 10.39 27.75 20.00 6.00 50.00 20.00 21.00 n/a
Data Caps 290.91 250.00 150.00 n/a n/a n/a n/a n/a
Level 5 Download 260.00 262.86 n/a 200.00 200.00 n/a 200.00 605.25
Upload 35.00 390.00 n/a 12.00 50.00 n/a 12.00 505.00
Data Caps 650.00 250.00 n/a n/a n/a n/a n/a n/a

Above average reflect the simple average of speed published by respective country's surveyed operators included in each service basket category.

n/a: service basket not offered / information not available being not published by the operators.

Level 5 averages for Canada and Japan reflect ~1 Gbps service offered by some operators.

There are some key notable differences in the way Fixed Broadband Internet is offered in some of the surveyed countries relative to Canada. These differences are described below.

5.4 International Rural and Remote Fixed Broadband Internet Service Prices

This section provides a comparison of rural region Fixed Broadband Internet prices in Canada relative to the three other foreign jurisdictions (US, UK and Australia)Footnote 37. Contrary to urban markets, rural markets are not dominated by a few large players. Recognizing this fact, where possible we have included larger ISPs that cover the broader segment of rural and remote Canadian population. We retained the four Canadian service providers included in the previous year’s Study - Xplornet, Storm, YourLink, and RuralWave. To better represent the province of Alberta in this Study, we also included Netago.

Accordingly, the following Canadian and International rural ISPs were surveyed:

For the above service providers, we collected their current service data in terms of the following parameters:

We applied the same service basket definitions specified for the Fixed Broadband Internet Service for this Study. According to our research, the service providers surveyed (or any other rural Fixed Broadband Internet service providers) do not offer service packages with 100Mbps download speed. Therefore, the Level 5 service basket was not included in this analysis.

Table 17 provides a summary of the average advertised download speeds and, where applicable, data caps for the surveyed rural & remote fixed wireless broadband services by service basket.

Table 17: Current International Rural Broadband Speed Comparison
Average Speeds (2016) Canada U.S.A. Australia U.K.
Level 1 Download 5.20 5.33 n/a 8.67
Upload 0.76 1.17 n/a 1.50
Data Caps 80.00 125.00 n/a 41.67
Level 2 Download 15.00 n/a 12.00 n/a
Upload 2.00 n/a 1.00 n/a
Data Caps 400.00 n/a 58.33 n/a
Level 3 Download 25.00 20.00 25.00 22.00
Upload 4.33 3.00 5.00 0.45
Data Caps 366.67 250.00 156.67 100.00
Level 4 Download 50.00 n/a 50.00 80.00
Upload 10.00 n/a 20.00 20.00
Data Caps 300.00 n/a 246.67 n/a

Above average reflect the simple average of speed published by respective country's surveyed operators included in each service basket category.

n/a: service basket not offered / information not available being not published by the operators.

In service Level 3 (16 Mbps – 40 Mbps) Canada has the highest data caps and, alongside Australia the highest download speeds. With respect to the other three service baskets, Canada has an average speed or above average speed in relation to the surveyed foreign jurisdictions.

Canada’s maximum upload speed (Level 4) averages 10 Mbps in comparison to 20 Mbps in the case of Australia and the UK.

As shown in Figure 12, weighted average prices for rural Fixed Broadband Internet in the UK and Australia are significantly lower than those of Canada and the US in all four service basketsFootnote 39. Canada’s prices were the highest in Levels 2 and 4 and the second highest in Levels 1 and 3.

For Level 4, Canada’s average ($69.29) is lower than Levels 2 and 3. This is partly due to the fact that ISP Storm only offered service with download speeds of up to 50 Mbps with prices up to $39.00 (Level 1), $54.00 (Level 2), $59.00 (Level 3) and $69.00 (Level 4). The other four Canadian rural Fixed Broadband Internet providers (Xplornet, YourLink, RuralWave and Netago) surveyed offered services up to Level 3 at significantly higher prices.

Figure 12: 2016 International Rural Fixed Broadband Internet Price Comparison PPP-adjusted CDN$

Figure 12 – Fixed Rural Broadband Level 1: horizontal bar chart for the 2016 International Rural Fixed Broadband Internet Price Comparison

Figure 12 – Fixed Rural Broadband Level 2: horizontal bar chart for the 2016 International Rural Fixed Broadband Internet Price Comparison

Figure 12 – Fixed Rural Broadband Level 3: horizontal bar chart for the 2016 International Rural Fixed Broadband Internet Price Comparison

Figure 12 – Fixed Rural Broadband Level 4: horizontal bar chart for the 2016 International Rural Fixed Broadband Internet Price Comparison

6. Mobile Wireless Internet Service

6.1 Mobile Wireless Internet Service Baskets

The 2015 Study considered two Mobile Wireless Internet service baskets represented by Level 1 with 2 GB data usage/month and Level 2 with 5 GB data usage/month. This year’s Study adds another higher-level service basket – Level 3 – with 10 GB or more of data usage/month, as described below.

The key Mobile Wireless Internet service information collected for each surveyed mobile wireless internet service provider was based on the following usage-based elements and service features:

One-time charges, such as installation costs, are excluded from price data.

6.2 Canadian Mobile Wireless Internet Service Prices

This section provides a summary of Mobile Wireless Internet prices offered in Canada by incumbents and compares such prices with those offered by MVNOs/resellers and new entrants.

Figure 13 below provides a picture of year-over-year change in Mobile Wireless Internet prices for Level 1 and 2 service baskets from 2015 to 2016.

Figure 13: Year-over-Year Change in Canadian Mobile Wireless Internet Prices for Level 1 and 2 Service Baskets (2015-2016)

Figure 13 – Mobile Wireless Broadband Level 1: horizontal bar chart for the Year-over-Year Change in Canadian Mobile Wireless Internet Prices (2015-2016)

Figure 13 – Mobile Wireless Broadband Level 2: horizontal bar chart for the Year-over-Year Change in Canadian Mobile Wireless Internet Prices (2015-2016)

Figure 14 provides a summary of Canadian average prices for Mobile Wireless Internet service baskets. The weighted average prices range from $46.47 per month for Level 1 to $80.98 per month for Level 3.

Figure 14: 2016 Weighted Average Canadian Mobile Wireless Internet Prices by Service Basket

Figure 14 – vertical bar chart for the 2016 Weighted Average Canadian Mobile Wireless Internet Prices by Service Baskets

Figure 15 below compares the Canadian Level 1 and 2 Mobile Wireless Internet service basket prices for the period of 2012 to 2016. There is no historical price information available for Level 3 as it has been included in this Study for the first time. More detailed price information by city is provided in Figure C.4 and Table C.5 in Appendix C.

Figure 15: Weighted Average Canadian Mobile Wireless Internet Prices by Service Basket (2012-2016)

Figure 15 – horizontal line chart for the Weighted Average Canadian Mobile Wireless Internet Prices by Service Baskets (2012-2016)

6.2.1 Comparison of Incumbent, MVNOs, and New Entrant Prices

This section compares the average Mobile Wireless Internet prices offered by incumbents with that of new entrants and MVNOs/resellers.

Table 18 below, compares the 2016 Mobile Wireless Internet service prices offered by Canadian incumbents (Bell, Rogers and TELUS) and new entrants (Eastlink, Videotron and WIND) for the three service levels, as applicable in the cities of Halifax, Montreal, Toronto and Vancouver.

Table 18: 2016 Canadian Mobile Wireless Internet Service Prices – Incumbent versus New Entrants
Service Basket Level Service Provider Type City Average (City)*
Halifax Montreal Toronto Vancouver
Level 1 Incumbents $46.53 $46.53 $46.53 $46.25 $46.46
New Entrants $35.00 $35.00 $41.21 $41.21 $38.10
Difference (%) -24.77% -24.77% -11.43% -10.90% -17.98%
Level 2 Incumbents $63.19 $63.19 $63.19 $60.00 $62.40
New Entrants $45.00 $55.00 $41.21 $41.21 $45.60
Difference (%) -28.79% -12.97% -34.79% -31.32% -26.91%
Level 3 Incumbents $78.89 $81.53 $81.53 $85.00 $81.74
New Entrants n/a $75.00 $41.21 $41.21 $52.47
Difference (%) n/a -8.01% -49.45% -51.52% -35.80%

Level 1: 2GB to less than 5GB per month; Level 2: 5GB to less than 10GB; and Level 3: 10GB or more.

No New Entrant was found in the other two cities: Winnipeg and Regina.

Only one New Entrant was found in the above four cities - Eastlink (Halifax), Videotron (Montreal), Wind (Toronto and Vancouver).

Incumbents' prices represent the unweighted averages.

If new entrant price was not available for a service level, its price for the next higher level (if available) was included.

*unweighted averages

For the Level 1 service basket, the new entrants’ prices were roughly 18% lower than the average prices offered by the incumbents. For the Level 2 Mobile Wireless Internet service basket, the new entrants’ prices were roughly 27% lower than the average incumbents’ prices. For the higher usage basket – Level 3, new entrants’ prices were 36% lower than the average prices offered by the incumbents.

Compared to last year, the new entrants' Mobile Wireless Internet average price discounts relative to the incumbents decreased from 22% to 18% (Level 1) and from 32% to 27% (Level 2). The reduction in the overall price differential this year is primarily due to price increases by Eastlink (Halifax) and WIND (Toronto and Vancouver) for Levels 1 and 2 prices within the past year.

Mobile Wireless Internet services were not offered by the surveyed MVNOs/resellers (Primus, PC Mobile). Therefore, the price comparison of Mobile Internet prices between incumbents, new entrants and MVNO is not provided in this Study.

6.3 International Mobile Wireless Internet Service Prices

Table 19 provides a summary of the average Level 1, 2 and 3 advertised monthly data caps (GB/month) and download speeds (Mbps) for Canada and each of the seven surveyed foreign jurisdictions. The upload speeds are often not advertised by wireless service providers and, therefore, are not included in Table 19.

The data in Table 19 below, indicate that the advertised download speeds for Mobile Wireless Internet service plans vary significantly across countries. The average advertised download speed of the surveyed Canadian Mobile Wireless Internet services was roughly 165 Mbps. Higher advertised download speeds were found in Japan, Italy and France (i.e., 188, 200 and 225 Mbps, respectively). In other foreign jurisdictions, considerably lower average advertised download speeds were found. The UK has the lowest average advertised download speed at 33.6 Mbps.

Table 19: International Comparison of Average Download Speeds (Mbps) and Usage Caps (GB/month) (2016)
Service Basket Level Country
Canada US UK France Australia Japan Germany Italy
Level 1 Download 164.68 33.74 33.60 225.00 75.00 187.60 133.00 200.00
Data Cap 2.50 2.50 2.40 2.00 2.50 2.50 2.67 3.00
Level 2 Download 164.68 33.74 33.60 225.00 75.00 187.60 133.00 200.00
Data Cap 5.50 6.00 6.50 6.33 5.25 6.00 5.67 5.75
Level 3 Download 164.68 33.74 33.60 225.00 75.00 187.60 133.00 200.00
Data Cap 10.00 10.67 12.50 18.00 10.75 10.00 n.a. 13.50

Level 1: 2GB to less than 5GB per month; Level 2: 5GB to less than 10GB; and Level 3: 10GB or more.

Download speed and data cap are unweighted average of surveyed service providers in the country.

The comparison in Table 19 is based on the advertised speeds of the networks rather than the estimated actual use speeds. The reasoning behind this decision was that the advertised speeds represent the speed at which the service operator suggests the consumer could reach in optimal conditions, rather than the estimated actual use speeds, which vary based on device and conditions. This approach is consistent with previous Studies.

Service speeds are dictated largely by technology. Many of the reviewed services use similar technologies. In Canada, the US, France, Germany, Italy and Japan, most of the surveyed service providers offer 4G LTE mobile Internet service plans. Despite using the same technology, advertised download speeds vary considerably across countries. Average advertised download speeds in the US range from 20.9 to 49 Mbps on 4G LTE network. In contrast, as noted earlier, Rogers, Bell and TELUS advertise 4G LTE download speeds from 100 to 335 Mbps. Similarly, Orange and Bouygues Telecom in France also advertise 4G LTE download speeds from 150 to 300 Mbps, respectively. At the other end of the spectrum, NTT Docomo, in Japan, advertises 4G LTE download speeds of up to 225 Mbps. Consequently, differences in advertised speeds for the same technology are significant.

The surveyed service providers in the remaining countries, the UK and Australia, generally offer 4G or 4G+ service plans at this time. In these cases, download speeds of between roughly 7.2 Mbps and 75 Mbps are advertised.

Figure 16 below, provides an overview of the change in International Mobile Wireless Internet Prices for Level 1 and 2 Service Baskets within the past year (2015 to 2016).

Figure 16: YoY (%) Change in International Mobile Wireless Internet Prices for Level 1 and 2 Service Baskets (2015-2016)

Figure 16 – Mobile Wireless Broadband Internet level 1: horizontal bar chart for the Year-over-Year Change in International Mobile Wireless Internet Prices (2015-2016)

Figure 16 – Mobile Wireless Broadband Internet level 2: horizontal bar chart for the Year-over-Year Change in International Mobile Wireless Internet Prices (2015-2016)

Figure D.4 and Table D.4 in Appendix D provide a detailed historical view of international Mobile Wireless Internet prices from 2008 to 2016.Figure 17 below, provides comparison of the 2016 international Mobile Wireless Internet prices.

Figure 17: 2016 International Mobile Wireless Internet Price Comparison PPP-adjusted CDN$

Figure 17 – Mobile Wireless Internet Level 1: horizontal bar chart for the 2016 International Mobile Wireless Internet Price Comparison

Figure 17 – Mobile Wireless Internet Level 2: horizontal bar chart for the 2016 International Mobile Wireless Internet Price Comparison

Figure 17 – Mobile Wireless Internet Level 3: horizontal bar chart for the 2016 International Mobile Wireless Internet Price Comparison

The key trends are summarized below:

7. Bundled Services

7.1 Bundled Service Baskets

The 2016 Study includes the following three Bundled Service basketsFootnote 42:

For the Fixed Telephony, Fixed Broadband Internet and Mobile Wireless Telephony elements in each bundle, Level 2 stand-alone service standards are used. For the TV package element, a ‘basic’ digital TV service option is included in the bundle. In cases where Level 2 service options (i.e. Fixed Telephony, Fixed Broadband Internet or Mobile Wireless Telephony) were not available, higher-level service options (e.g., Level 3 or 4) have been included. Table B.5 in Appendix B provides a detailed summary of the service elements used for the bundled service price comparison.

7.2 Canadian Bundled Service Prices

All Canadian incumbents included in this section offered a variation of all three defined bundled services, with the exception of Rogers in Toronto, who only offered bundles with TV packages. Thus, only Bundles 2 and 3 were considered for Rogers in Toronto. Only Bundle 2 was included for Access Communications and Shaw, whom do not offer Mobile Wireless Telephony services. Furthermore, since Primus does not provide TV services, only Bundle 1 was considered in the comparison.

TV packages offered in the Canadian market vary considerably in delivery technologies (cable, IPTV and satellite), channel inclusions and features. These differences can contribute to price variations. Based on the surveyed plans, Canadian basic digital TV packages, with minimal features, were available on a stand-alone basis with a price range of $25.00 (Videotron and SaskTel) to $55.00 (EastLink). Price variation within TV packages accounted for a considerable contribution to the price differences in Bundles 2 and 3.

Figure 18 below, provides a summary of Canadian average monthly prices for each of the three Bundled Service baskets for the period 2008 to 2016. More detailed information for the period 2008 to 2016, is provided in Figure C.5 and Table C.6 in Appendix C. Key trends in Canadian bundled services prices are summarized below.

Figure 18: Average Canadian Bundled Service Prices by Service Baskets (2008-2016)

Figure 18 – horizontal line chart for the Average Canadian Bundled Service Prices by Service Baskets (2008-2016)

Bundling discounts vary by service providers and with respect to service offerings. For example, TELUS offered a fixed dollar amount as a discount while others, such as Videotron, offered a percentage discount. Canadian bundling discounts averaged 15.9% in Bundle 1, 14.8% in Bundle 2 and 12.2% in Bundle 3.

Figure 19 below, provides an overview of the changes in the three bundled service baskets since 2015. Key highlights are:

Figure 19: YoY Change in Canadian Bundled Service Prices (2015-2016)

Figure 19 – Bundled Service Level 1: horizontal bar chart for the Year-over-Year Change in Canadian Bundled Service Prices (2015-2016)

Figure 19 – Bundled Service Level 2: horizontal bar chart for the Year-over-Year Change in Canadian Bundled Service Prices (2015-2016)

Figure 19 – Bundled Service Level 3: horizontal bar chart for the Year-over-Year Change in Canadian Bundled Service Prices (2015-2016)

7.3 International Bundled Service Prices

Not all of the surveyed international service providers offered all of the three defined bundled services. For example, Time Warner Cable and Comcast do not have in-house Mobile Wireless Telephony service offerings, thus they do not qualify for comparison in Bundles 1 and 3. Similarly, service providers in other foreign jurisdictions, such as Telstra and Optus in Australia, Orange and Numericable-SFR in France, Telecom Italia and FastWeb in Italy and Deutsche Telekom in Germany do not offer bundles without a TV package component. For these latter companies, only Bundle 2 and Bundle 3 are considered for comparison.

As stated above, TV packages offered by Canadian providers vary in delivery technologies, channel inclusions and features. This also applies to international service providers, where price differentials in TV packages from different providers have a substantial impact on the total costs of the bundles.

Figure 20 below, provides an overview of yearly changes of 2016 bundle prices from 2015, in Canada and each of the seven foreign jurisdictions, and for each of the three bundled service baskets. More detailed information can be found in Figure D.5 and Table D.5 in Appendix D.

Figure 20: Change in International Bundled Service for Level 1 to 3 Service Baskets (2015-2016)

Figure 20 – Bundled Service Level 1: horizontal bar chart for the Change in International Bundled Service (2015-2016)

Figure 20 – Bundled Service Level 2: horizontal bar chart for the Change in International Bundled Service (2015-2016)

Figure 20 – Bundled Service Level 3: horizontal bar chart for the Change in International Bundled Service (2015-2016)

Service providers in Australia, the UK, Germany and Italy offered bundled services with additional features at lower prices. The major downward movement in the prices of bundled services in international jurisdictions, is attributable to the difference in the interpretation of certain elements of bundled services in the 2015 Study relative to the 2016 StudyFootnote 43. In light of these changes in methodology, relative to the previous year, the reader is advised to take caution in comparing 2016 prices with those of previous year.

Figure 21 below provides a graphical comparison of Bundle 1, 2 and 3 services for Canada and the surveyed international jurisdictions in 2016.

Figure 21: 2016 International Bundled Service Price Comparison (PPP-adjusted CA$)

Figure 21 – Bundled Service Level 1: horizontal bar chart for the 2016 International Bundled Service Price Comparison

Figure 21 – Bundled Service Level 2: horizontal bar chart for the 2016 International Bundled Service Price Comparison

Figure 21 – Bundled Service Level 3: horizontal bar chart for the 2016 International Bundled Service Price Comparison

Key trends in year-over-year international Bundled Services prices are summarized below:

Amongst the few (only six) service providers (e.g. AT&T and Century Link in the US, Virgin in the UK, Vodafone in Germany, NTT and JCom in Japan) that offered Bundle 1, the average bundling discount was 26.4%. Greater bundling discounts were observed for Bundle 2 and Bundle 3, which have an average of 40.9% and 35.5% respectively, among the seven surveyed jurisdictions.

8. Canadian VoIP Bundle Prices

As noted above, in certain foreign (EU) jurisdictions, over-the-top (OTT) Voice (referred to as VoIP) is bundled with Fixed Broadband Internet service. VoIP currently represents 6% of wireline connections in Canada and is increasing rapidlyFootnote 44

In this context, we believe that VoIP plans bundled with Fixed Broadband Internet service will become more relevant in the price comparison calculation in future years. This analysis will become more useful with the increasing shift from traditional Public Switched Telephone Network (PSTN) voice service to VoIP services. Capturing this market segment will provide a better perspective on the availability and the pricing of these communication services to Canadians in relation to foreign jurisdictions. It will also allow more meaningful comparison of Fixed Broadband Internet prices in future. In this context, and to ensure the completeness of this Study, this section provides additional analysis on fixed broadband plus VoIP options available for Canadians.

For this purpose, we surveyed third party ISPs, such as TekSavvy and Primus, that offer OTT VoIP plans in selected cities. Our survey also included ‘pure’ VoIP provider – Vonage (a US-based company that offers VoIP service in Canada under the brand Vonage Canada).

Incumbents currently do not offer VoIP bundled with their Fixed Broadband Internet services. Therefore, for the purpose of this analysis, we combined the average prices of Fixed Telephony and Fixed Broadband Internet service prices available to Canadians on a standalone basis. We added Fixed Telephony Level 3 prices to the individual Fixed Broadband Internet Level 1, 2 and 3 prices. We conclude that Fixed Telephony Level 3 prices were comparable to the VoIP premium offers which include unlimited local and national long distance calling and more than two feature options.

In the second step of the analysis, we determined average VoIP prices based on premium offers of the surveyed three VoIP service providers. Then, we added the average VoIP prices to Fixed Broadband Internet service baskets level 1, 2 and 3 average prices.

In the third step, we determined average bundled (VoIP + Broadband) prices offered by the two surveyed resellers – TekSavvy and Primus in three main Canadian cities (Montreal, Toronto and Vancouver).

Table 20 below provides a summary of 2016 VoIP and Fixed Broadband Internet bundled prices, in terms of the three steps described above.

Table 20: Canadian VoIP and Fixed Broadband Internet Bundled Prices
VoIP + Fixed Broadband Bundle Fixed Broadband Service Level
Level 1 Level 2 Level 3
A: Fixed Telephony Service Level 3 $60.32 $60.32 $60.32
B: Fixed Broadband (2016 Average Price) $41.94 $58.88 $63.48
C: VoIP Service Providers:
Vonage $27.03 $27.03 $27.03
Primus $17.97 $17.97 $17.97
Teksavvy $25.59 $25.59 $25.59
Unweighted Average for A, B and C $23.53 $23.53 $23.53
D: Broadband and VoIP Service Providers:
Primus $68.06 n/a $67.06
Teksavvy $55.97 $61.69 $72.35
Unweighted Average for D $62.01 $61.69 $69.70
E: VoIP 2016 Prices (B + C) $65.47 $82.41 $87.01
F: Traditional Voice Bundle (A + B) $102.26 $119.20 $123.81
Differential (E versus F) -35.98% -30.87% -29.72%
Differential (D versus F) -39.36% -48.25% -43.70%

The table above shows a significant difference between traditional Fixed Telephony and Broadband bundle (Line ‘F’) versus VoIP and Fixed Broadband Internet bundle (Line ‘E’). That is, consumers can save from 30% to 36% if they subscribe to OTT VoIP using the traditional Fixed Broadband Internet service Levels 1 to 3.

Fixed Wireline Broadband resellers (Primus and TekSavvy) also offer OTT VoIP along with their internet service plans as a bundle or as an add on option as shown Line ‘D’ in Table 20. This implies that the VoIP service offers by the resellers provide 39% to 44% saving options to the consumers.

APPENDIX A: LIST OF SERVICE PROVIDERS BY SERVICE BASKETS

Table A.1: List of Canadian Service Providers Included in the 2016 Price Comparison Study
Cities Service Baskets List of Service Providers
Halifax, NS Fixed Telephony Bell Canada, Eastlink, Vonage, TekSavvy, Primus
Fixed Broadband Internet Bell Canada, Eastlink, TekSavvy, Primus, Vonage
Mobile Wireless Telephony and text messaging Bell Canada, TELUS, Rogers, Eastlink, PC Mobile, Petro-Canada Mobile, 7-Eleven Speakout, Incumbent Flanker Brands
Mobile Wireless Internet Bell Canada, TELUS, Rogers, Eastlink, PC Mobile, Incumbent Flanker Brands
Service Bundles Bell Canada Aliant, Eastlink
Montreal, QC Fixed Telephony Bell, Videotron, Vonage, TekSavvy, Primus
Fixed Broadband Internet Bell, Videotron, TekSavvy, Primus
Mobile Wireless Telephony and text messaging Bell, TELUS, Rogers, Videotron, Primus, PC Mobile, Petro-Canada Mobile, 7-Eleven Speakout, Incumbent Flanker Brands
Mobile Wireless Internet Bell, TELUS, Rogers, Videotron, Primus, PC Mobile, Incumbent Flanker Brands
Service Bundles Bell, Videotron, Primus (as applicable)
Toronto, ON Fixed Telephony Bell, Rogers, Primus, Vonage, TekSavvy
Fixed Broadband Internet Bell, Rogers, Primus, TekSavvy
Mobile Wireless Telephony and text messaging Bell, TELUS, Rogers, WIND, Primus, PC Mobile, Petro-Canada Mobile, 7-Eleven Speakout, Incumbent Flanker Brands
Mobile Wireless Internet Bell, TELUS, Rogers, WIND, PC Mobile, Primus
Service Bundles Bell, Rogers, Primus (as applicable)
Winnipeg, MB Fixed Telephony MTS, Shaw, Vonage, TekSavvy, Primus
Fixed Broadband Internet MTS, Shaw
Mobile Wireless Telephony and text messaging MTS, TELUS, Rogers, PC Mobile, Primus, Petro-Canada Mobile, 7-Eleven Speakout, Incumbent Flanker Brands
Mobile Wireless Internet MTS, Bell, TELUS, Rogers, Primus, PC Mobile, Incumbent Flanker Brands
Service Bundles MTS, Shaw
Regina, SK Fixed Telephony SaskTel, Access Communications, Vonage, TekSavvy, Primus
Fixed Broadband Internet SaskTel, Access Communicatio
Mobile Wireless Telephony and text messaging SaskTel, Bell, TELUS, Rogers, PC Mobile, Primus, Petro-Canada Mobile, 7-Eleven Speakout, Incumbent Flanker Brands
Mobile Wireless Internet SaskTel, Bell, TELUS, Rogers, Primus, PC Mobile, Incumbent Flanker Bands
Service Bundles SaskTel, Access Communications
Vancouver, BC Fixed Telephony TELUS, Shaw, Primus, Vonage, TekSavvy
Fixed Broadband Internet TELUS, Shaw, Primus, TekSavvy
Mobile Wireless Telephony and text messaging Bell, TELUS, Rogers, WIND, Primus, PC Mobile, Petro-Canada Mobile, 7-Eleven Speakout, Incumbent Flanker Brands
Mobile Wireless Internet Bell, TELUS, Rogers, WIND, Primus, PC Mobile, Incumbent Flanker Brands
Service Bundles TELUS, Shaw, Primus (as applicable)
Table A.2: List of International Service Providers Included in the 2016 Price Comparison Study
Cities Service Baskets List of Service Providers
1. United States
Boston, MA Fixed Telephony Verizon, Comcast
Fixed Broadband Internet Verizon, Comcast
Mobile Wireless Telephony and text messaging AT&T, Verizon, Sprint, T-Mobile
Mobile Wireless Internet AT&T, Verizon, Sprint, T-Mobile
Service Bundles Verizon, Comcast
Kansas City, MO Fixed Telephony AT&T, Time Warner
Fixed Broadband Internet AT&T, Time Warner
Mobile Wireless Telephony and text messaging AT&T, Verizon, Sprint, T-Mobile
Mobile Wireless Internet AT&T, Verizon, Sprint, T-Mobile
Service Bundles AT&T, Time Warner
Minneapolis, MN Fixed Telephony CenturyLink, Comcast
Fixed Broadband Internet CenturyLink, Comcast
Mobile Wireless Telephony and text messaging AT&T, Verizon, Sprint, T-Mobile
Mobile Wireless Internet AT&T, Verizon, Sprint, T-Mobile
Service Bundles CenturyLink/Verizon, Comcast
Seattle, WA Fixed Telephony CenturyLink, Comcast
Fixed Broadband Internet CenturyLink, Comcast
Mobile Wireless Telephony and text messaging AT&T, Verizon, Sprint, T-Mobile
Mobile Wireless Internet AT&T, Verizon, Sprint, T-Mobile
Service Bundles CenturyLink/Verizon, Comcast
2. Australia
Sydney Fixed Telephony Telstra and Optus
Fixed Broadband Internet Telstra and Optus
Mobile Wireless Telephony and text messaging Telstra and Optus
Mobile Wireless Internet Telstra and Optus
Service Bundles Telstra and Optus
3. United Kingdom
London Fixed Telephony BT, Virgin, Talk TalkFootnote 45
Fixed Broadband Internet BT, Virgin, EE, AOL
Mobile Wireless Telephony and text messaging EE, Virgin Mobile, Vodafone, O2, 3 (three)Footnote 46
Mobile Wireless Internet EE, Virgin Mobile, Vodafone, O2, 3 (three)
Service Bundles BT (EE), 2 Virgin
4. France
Paris Fixed Telephony Orange (France Telecom), Numericable, SFRFootnote 47
Fixed Broadband Internet Orange (France Telecom), Numericable, SFRFootnote 48
Mobile Wireless Telephony and Text messaging Orange, Numericable, SFR, Bouygues Telecom
Mobile Wireless Internet Orange, Numericable, SFR, Bouygues Telecom
Service Bundles Orange, Numericable, SFR
5. Italy
Rome Fixed Telephony Telecom Italia, FastWeb
Fixed Broadband Internet Telecom Italia, FastWeb
Mobile Wireless Telephony and text messaging Telecom Italia (TIM), Vodafone, WIND
Mobile Wireless Internet Telecom Italia (TIM), Vodafone, WIND
Service Bundles Telecom Italia, FastWeb
6. Germany
Berlin Fixed Telephony Deutsche Telekom (DT), Vodafone/KDFootnote 49
Fixed Broadband Internet DT, Vodafone/KD
Mobile Wireless Telephony and text messaging DT, Vodafone, E-plus (KPN), O2
Mobile Wireless Internet DT, Vodafone, E-plus (KPN)
Service Bundles DT, Vodafone/KD
7. Japan
Tokyo Fixed Telephony NTT, J:Com
Fixed Broadband Internet NTT, J:Com, KDDI, Yahoo! BB
Mobile Wireless Telephony and text messaging NTT DoCoMo, Softbank, au KDDI, Y!MobileFootnote 50
Mobile Wireless Internet NTT DoCoMo, Softbank, au KDDI, Y!Mobile
Service Bundles NTT, J:Com (au KDDI)

APPENDIX B: SERVICE BASKETS

Table B.1: Fixed (Wireline) Telephony Service Baskets
Key Elements Level 1 Level 2 Level 3
Incoming minutes per month (45%) 180 450 720
Outgoing minutes per month (55%) 220 550 880
Outgoing minutes per month 198 440 616
Outgoing Long distance minutes 22 110 264
Total minutes per month 400 1,000 1,600
Long distance to total outgoing ratio 10% 20% 30%
Voice Mail No Yes Yes
Caller ID No Yes Yes
Additional features (two additional or bundled, if available) No No Yes
Table B.2: Mobile Wireless Telephony and text Messaging Service Baskets
Key Elements Level 1 Level 2 Level 3 Level 4 Level 5 Level 6
Incoming minutes per month 60 180 480 Ultd Ultd Ultd
Outgoing minutes per month 90 270 720 Ultd Ultd Ultd
Outgoing minutes per month 81 243 612 Ultd Ultd Ultd
Outgoing Long distance minutes 9 27 108 Ultd Ultd Ultd
Total minutes per month 150 450 1,200 Ultd Ultd Ultd
Long distance to total outgoing ratio 10% 10% 15% n/a n/a n/a
Voice Mail No Yes Yes Yes Yes Yes
Caller ID No Yes Yes Yes Yes Yes
Other Feature(s) No No Yes Yes Yes Yes
TMS No 300 300 Ultd Ultd Ultd
Data No No 1 GB 2 GB 5 GB 10 GB *

Ultd: Unlimited nationwide talk and text, excluding international calling

n/a: not applicable

*Shared data plan among three lines

Table B.3: Fixed Broadband Internet Service Baskets
Key Elements Level 1 Level 2 Level 3 Level 4 Level 5
Download Speed Range (Mbps) 3 to 9 10 to 15 16 to 40 41 to 100 > 100
Monthly Usage 10 GB 50 GB 100 GB 150 GB 500 GB
Modem FWC or R FWC or R FWC or R FWC or R FWC or R

FWC: Free with contract

R: Monthly rental or amortization (24 months)

Table B.4: Mobile Wireless (Broadband) Internet Service Baskets
Key Elements Level 1 Level 2 Level 3
Download Speed Range (Mbps) ≥ 1.5 ≥ 1.5 ≥ 1.5
Monthly Usage 2 GB 5 GB 10 GB
Modem FWC or R FWC or R FWC or R

FWC: Free with contract

R: Monthly rental or amortization (24 months)

Table B.5: Bundled Service Baskets
Key Elements Level 1 Level 2 Level 3
Fixed Telephony Level 2 Level 2 Level 2
Mobile Wireless Telephony Level 2 Level 2
Fixed Broadband Internet Level 2 Level 2 Level 2
Television Package Basic Digital TV Basic Digital TV

APPENDIX C: CANADIAN PRICE COMPARISONS

Figure C.1.1: Canadian Fixed Telephony Service Level 1

Figure C.1.1. – Vertical bar chart for the Canadian Fixed Telephony Service Level 1

Table C.1. 1 Canadian Fixed Telephony Service - Level 1: 400 Minutes with 10% LD
Year Halifax Montreal Toronto Winnipeg Regina Vancouver Average YoY%
2008 $31.73 $30.27 $31.61 $30.49 $28.16 $30.90 $30.88 n/a
2009 $32.23 $28.92 $32.51 $30.48 $28.16 $25.92 $29.80 -3.5%
2010 $30.08 $29.39 $33.88 n/a $26.49 $28.27 $31.16 4.6%
2011 $31.79 $27.33 $34.63 n/a $26.52 $34.52 $32.06 2.9%
2012 $31.89 $31.31 $35.30 n/a $26.76 $33.16 $33.42 4.2%
2013 $32.04 $32.85 $38.45 n/a $26.86 $33.12 $35.33 5.7%
2014 $33.06 $37.10 $44.24 n/a $27.17 $31.45 $38.99 10.4%
2015 $35.07 $38.47 $47.30 $36.73 $27.34 $31.39 $40.64 4.2%
2016 $38.29 $36.41 $45.42 $40.30 $24.50 $31.55 $39.52 -2.8%
CAGR 2.4% 2.3% 4.6% 3.5% -1.7% 0.3% 3.1% n/a

CAGR: Compound Annual Growth Rate from 2008 to 2016

n/a: not available

YoY: Year over Year Change

Figure C.1.2: Canadian Fixed Telephony Service Level 2

Figure C.1.2. – Vertical bar chart for the Canadian Fixed Telephony Service level 2

Table C.1.2 Canadian Fixed Telephony Service - Level 2: 1,000 Minutes with 20% LD
Year Halifax Montreal Toronto Winnipeg Regina Vancouver Average YoY%
2008 $48.93 $45.44 $48.96 $50.61 $41.39 $48.67 $47.91 n/a
2009 $53.61 $52.01 $57.78 $51.35 $41.39 $34.68 $50.05 4.5%
2010 $50.78 $46.81 $58.09 n/a $41.50 $44.18 $51.42 2.7%
2011 $47.34 $46.72 $54.66 n/a $41.52 $44.62 $49.81 -3.1%
2012 $49.05 $48.55 $57.08 n/a $41.71 $45.19 $51.71 3.8%
2013 $51.56 $54.58 $62.50 n/a $39.94 $43.63 $55.77 7.9%
2014 $55.19 $52.26 $61.77 n/a $39.97 $41.11 $54.37 -2.5%
2015 $59.57 $59.83 $64.88 $58.23 $40.81 $47.69 $59.44 9.3%
2016 $61.07 $55.43 $61.49 $54.35 $39.20 $43.56 $55.78 -6.2%
CAGR 2.8% 2.5% 2.9% 0.9% -0.7% -1.4% 1.9% n/a

CAGR: Compound Annual Growth Rate from 2008 to 2016

n/a: not available

YoY: Year over Year Change

Figure C.1.3: Canadian Fixed Telephony Service Level 3

Figure C.1.3. – Vertical bar chart for the Canadian Fixed Telephony Service level 3

Table C.1.3: Canadian Fixed Telephony Service - Level 3: 1,600 Minutes with 30% LD
Year Halifax Montreal Toronto Winnipeg Regina Vancouver Average YoY%
2008 $60.63 $59.36 $63.02 $60.47 $49.81 $57.45 $60.27 n/a
2009 $66.34 $61.68 $67.59 $59.47 $49.56 $51.51 $61.55 2.1%
2010 $67.02 $61.15 $64.19 n/a $48.96 $51.79 $60.78 -1.3%
2011 $58.35 $60.97 $61.36 n/a $48.99 $57.59 $60.22 -0.9%
2012 $60.33 $59.08 $65.97 n/a $49.66 $50.62 $60.52 0.5%
2013 $64.58 $60.94 $65.84 n/a $49.11 $52.69 $61.53 1.7%
2014 $67.85 $58.95 $65.80 n/a $49.03 $48.91 $60.29 -2.0%
2015 $69.70 $66.89 $68.89 $65.87 $48.98 $52.66 $64.96 7.7%
2016 $71.38 $61.60 $65.77 $55.29 $46.91 $45.98 $60.32 -7.1%
CAGR 2.1% 0.5% 0.5% -1.1% -0.7% -2.7% 0.0% n/a

CAGR: Compound Annual Growth Rate from 2008 to 2016

n/a: not available

YoY: Year over Year Change

Figure C.2.1: Canadian Wireless Telephony and Text Messaging Service Level 1

Figure C.2.1. – Vertical bar chart for the Canadian Wireless Telephony and Text Messaging Service Level 1

Table C.2.1: Canadian Wireless Telephony and Text Messaging Service - Level 1: 150 Minutes
Year Halifax Montreal Toronto Winnipeg Regina Vancouver Average YoY%
2008 $33.25 $31.96 $33.55 $31.44 $30.16 $32.90 $32.73 n/a
2009 $32.48 $33.24 $33.34 $31.85 $29.44 $33.32 $33.03 0.9%
2010 $29.23 $34.38 $34.33 n/a $28.64 $34.10 $34.03 3.0%
2011 $29.24 $34.47 $34.45 n/a $29.59 $31.94 $33.73 -0.9%
2012 $29.75 $34.72 $34.44 n/a $29.66 $34.58 $34.32 1.8%
2013 $30.76 $30.63 $31.09 n/a $28.88 $30.06 $30.71 -10.5%
2014 $36.50 $36.28 $35.04 n/a $35.05 $36.29 $35.70 16.3%
2015 $37.37 $37.46 $37.54 $32.98 $32.43 $38.21 $37.29 4.4%
2016 $40.62 $40.46 $41.71 $38.98 $36.12 $41.79 $41.08 10.2%
CAGR 2.5% 3.0% 2.8% 2.7% 2.3% 3.0% 2.9% n/a

CAGR: Compound Annual Growth Rate from 2008 to 2016

n/a: not available

YoY: Year over Year Change

Figure C.2.2: Canadian Wireless Telephony and Text Messaging Service Level 2

Figure C.2.2. – Vertical bar chart for the Canadian Wireless Telephony and Text Messaging Service Level 2

Table C.2.2: Canadian Wireless Telephony and Text Messaging Service - Level 2: 450 Minutes and 300 TMS
Year Halifax Montreal Toronto Winnipeg Regina Vancouver Average YoY%
2008 $53.14 $62.62 $63.37 $51.91 $61.20 $58.34 $60.81 n/a
2009 $48.73 $59.17 $59.20 $50.49 $44.44 $59.30 $57.78 -5.0%
2010 $48.05 $54.34 $53.56 n/a $44.77 $53.74 $53.49 -7.4%
2011 $47.39 $51.50 $49.99 n/a $48.19 $50.86 $50.51 -5.6%
2012 $47.22 $51.04 $51.97 n/a $42.54 $51.61 $51.31 1.6%
2013 $43.44 $44.78 $45.40 n/a $44.86 $43.93 $44.86 -12.6%
2014 $45.40 $45.59 $44.29 n/a $54.29 $46.20 $45.26 0.9%
2015 $48.45 $49.04 $48.15 $46.65 $56.70 $49.28 $48.68 7.6%
2016 $49.56 $44.39 $50.96 $46.98 $49.38 $50.89 $48.77 0.2%
CAGR -0.9% -4.2% -2.7% -1.2% -2.6% -1.7% -2.7% n/a

CAGR: Compound Annual Growth Rate from 2008 to 2016

n/a: not available

YoY: Year over Year Change 

Figure C.2.3: Canadian Wireless Telephony and Text Messaging Service Level 3

Figure C.2.3. – Vertical bar chart for the Canadian Wireless Telephony and Text Messaging Service Level 3

Table C.2.3: Canadian Wireless Telephony and Text Messaging Service - Level 3: 1,200 Minutes, 300 TMS and 1 GB Data
Year Halifax Montreal Toronto Winnipeg Regina Vancouver Average YoY%
2008 $121.04 $113.21 $111.51 $111.51 $113.67 $109.68 $112.34 n/a
2009 $105.61 $104.38 $102.20 $112.82 $94.64 $101.24 $103.24 -8.1%
2010 $101.44 $108.37 $112.63 n/a $94.97 $107.27 $109.59 6.2%
2011 $96.73 $98.73 $100.76 n/a $96.69 $99.61 $99.69 -9.0%
2012 $96.44 $98.92 $98.26 n/a $96.42 $98.22 $98.37 -1.3%
2013 $94.40 $93.78 $93.89 n/a $77.07 $93.96 $93.59 -4.9%
2014 $86.91 $73.59 $81.00 n/a $65.33 $86.46 $79.69 -14.9%
2015 $86.76 $82.96 $87.36 $73.54 $72.56 $88.32 $85.22 6.9%
2016 $79.29 $62.98 $80.48 $69.86 $71.59 $80.48 $74.67 -12.4%
CAGR -5.1% -7.1% -4.0% -5.7% -5.6% -3.8% -5.0% n/a

CAGR: Compound Annual Growth Rate from 2008 to 2016

n/a: not available

YoY: Year over Year Change

Figure C.2.4: Canadian Wireless Telephony and Text Messaging Service Level 4

Figure C.2.4. – Vertical bar chart for the Canadian Wireless Telephony and Text Messaging Service Level 4

Table C.2.4: Canadian Wireless Telephony and Text Messaging Service - Level 4: Unlimited Minutes, TMS and 2 GB Data
Year Halifax Montreal Toronto Winnipeg Regina Vancouver Average YoY%
2014 $89.23 $92.29 $92.81 n/a $65.62 $97.69 $92.99 n/a
2015 $91.23 $76.22 $87.83 $61.82 $64.43 $89.78 $83.08 -10.7%
2016 $88.73 $69.98 $87.69 $63.69 $68.15 $88.24 $81.05 -2.4%
CAGR -0.3% -12.9% -2.8% 3.0% 1.9% -5.0% -6.6% n/a

CAGR: Compound Annual Growth Rate from 2014 to 2016

n/a: not available

YoY: Year over Year Change

Figure C.2.5: Canadian Wireless Telephony and Text Messaging Service Level 5

Figure C.2.5. – Vertical bar chart for the Canadian Wireless Telephony and Text Messaging Service Level 5

Table C.2.5: Canadian Wireless Telephony and Text Messaging Service - Level 5: Unlimited Minutes, TMS and 5 GB Data
Year Halifax Montreal Toronto Winnipeg Regina Vancouver Average YoY%
2015 $122.21 $94.67 $117.93 $65.76 $65.62 $117.65 $107.50 n/a
2016 $109.64 $79.44 $105.81 $70.38 $82.15 $109.11 $96.55 -10.2%
CAGR -10.3% -16.1% -10.3% 7.0% 25.2% -7.3% -10.2% n/a

CAGR: Compound Annual Growth Rate from 2015 to 2016

n/a: not available

YoY: Year over Year Change

Figure C.2.6: Canadian Wireless Telephony and Text Messaging Service Level 6

Figure C.2.6. – Vertical bar chart for the Canadian Wireless Telephony and Text Messaging Service Level 6

Table C.2.6: Canadian Wireless Telephony and Text Messaging Service - Level 6: Unlimited Minutes, TMS and 10 GB Data with 3 Lines
Year Halifax Montreal Toronto Winnipeg Regina Vancouver Average YoY%
2016 $250.18 $190.40 $257.18 $180.00 $182.44 $256.00 $231.99 n/a

n/a: not available

YoY: Year over Year Change

Figure C.3.1 Canadian Fixed Broadband Internet Service Level 1

Figure C.3.1. – Vertical bar chart for the Canadian Fixed Broadband Internet service Level 1

Table C.3.1: Canadian Fixed Broadband Internet Service Prices - Level 1: 3 to 9 Mbps
Year Halifax Montreal Toronto Winnipeg Regina Vancouver Average YoY%
2008 $34.95 $32.45 $38.95 $29.95 $30.45 $23.45 $32.88 n/a
2009 $35.95 $28.43 $35.45 $30.95 $30.45 $24.95 $30.98 -5.8%
2010 $36.95 $29.43 $33.45 n/a $30.95 $29.00 $31.44 1.5%
2011 $36.15 $36.90 $34.15 n/a $32.52 $33.00 $34.85 10.9%
2012 $39.15 $33.35 $45.37 n/a $31.95 $35.40 $39.37 13.0%
2013 $42.15 n/a n/a n/a $31.95 $39.00 $38.91 -1.2%
2014 $40.15 n/a $50.95 n/a $42.95 n/a $50.00 28.5%
2015 $55.13 n/a n/a n/a $34.10 n/a $47.51 -5.0%
2016 $88.73 $41.07 $33.63 $55.80 $46.95 $51.00 $41.94 -11.7%
CAGR 12.4% 3.0% -1.8% 8.1% 5.6% 10.2% 3.1% n/a

CAGR: Compound Annual Growth Rate from 2008 to 2016

n/a: not available

YoY: Year over Year Change

Figure C.3.2 Canadian Fixed Broadband Internet Service Level 2

Figure C.3.2. – Vertical bar chart for the Canadian Fixed Broadband Internet service Level 2

Table C.3.2 Canadian Fixed Broadband Internet Service - Level 2: 10 to 15 Mbps
Year Halifax Montreal Toronto Winnipeg Regina Vancouver Average YoY%
2008 $47.45 $48.95 $48.95 $41.95 $45.45 $40.95 $46.58 n/a
2009 $48.45 $50.43 $50.95 $42.95 $45.45 $38.45 $47.26 1.5%
2010 $49.45 $51.43 $47.95 n/a $45.95 $40.00 $47.60 0.7%
2011 $50.75 $52.83 $49.33 n/a $48.52 $45.65 $49.79 4.6%
2012 $57.75 $60.92 $52.79 n/a $54.95 $46.40 $54.31 9.1%
2013 $51.15 $55.60 $47.18 n/a $54.95 $53.51 $51.20 -5.7%
2014 $54.95 $53.91 $55.25 n/a $54.95 $56.68 $55.10 7.6%
2015 $74.45 $54.83 $55.17 $59.17 $52.88 $59.90 $56.66 2.8%
2016 n/a $51.75 $61.92 $62.60 $56.95 $62.00 $58.88 3.9%
CAGR 6.6% 0.7% 3.0% 5.1% 2.9% 5.3% 3.0% n/a

CAGR: Compound Annual Growth Rate from 2008 to 2016

n/a: not available

YoY: Year over Year Change

Figure C.3.3 Canadian Fixed Broadband Internet Service Level 3

Figure C.3.3. – Vertical bar chart for the Canadian Fixed Broadband Internet service Level 3

Table C.3.3 Canadian Fixed Broadband Internet Service - Level 3: 16 to 40 Mbps
Year Halifax Montreal Toronto Winnipeg Regina Vancouver Average YoY%
2008 $57.45 $83.45 $73.95 $52.95 $55.95 $50.95 $68.74 n/a
2009 $58.45 $64.40 $62.45 $52.95 $55.95 $53.45 $60.08 -12.6%
2010 $59.45 $65.40 $62.45 n/a $56.45 $55.48 $61.88 3.0%
2011 $60.75 $66.33 $65.35 n/a $56.75 $55.00 $63.44 2.5%
2012 $88.95 $66.95 $72.17 n/a $79.95 $54.60 $67.94 7.1%
2013 $77.95 $67.05 $64.35 n/a $79.95 $60.69 $65.18 -4.1%
2014 $87.95 $67.15 $70.87 n/a $70.95 $62.00 $68.60 5.3%
2015 $92.95 $59.93 $71.39 $67.93 $62.88 $68.17 $67.81 -1.2%
2016 n/a $56.09 $65.20 $70.60 $62.95 $69.06 $63.48 -6.4%
CAGR 7.1% -4.8% -1.6% 3.7% 1.5% 3.9% -1.0% n/a

CAGR: Compound Annual Growth Rate from 2008 to 2016

n/a: not available

YoY: Year over Year Change

Figure C.3.4 Canadian Fixed Broadband Internet Service Level 4

Figure C.3.4. – Vertical bar chart for the Canadian Fixed Broadband Internet service Level 4

Table C.3.4 Canadian Fixed Broadband Internet Service - Level 4: 41 to 100 Mbps
Year Halifax Montreal Toronto Winnipeg Regina Vancouver Average YoY%
2011 $84.75 $73.30 $73.75 n/a $99.95 $91.40 $77.71 n/a
2012 $138.95 $82.95 $106.98 n/a n/a $74.90 $94.39 21.5%
2013 $102.75 $82.95 $80.57 n/a $99.95 $85.00 $82.88 -12.2%
2014 $99.55 $84.75 $86.87 n/a $105.95 $86.00 $86.46 4.3%
2015 $99.26 $74.51 $79.68 $87.10 $105.80 $89.79 $80.63 -6.7%
2016 $84.17 $72.21 $76.80 $89.80 $85.95 $89.16 $78.77 -2.3%
CAGR -0.1% -0.3% 0.8% 3.1% -3.0% -0.5% 0.3% n/a

CAGR: Compound Annual Growth Rate from 2011 to 2016

n/a: not available

YoY: Year over Year Change

Figure C.3.5 Canadian Fixed Broadband Internet Service Level 5

Figure C.3.5. – Vertical bar chart for the Canadian Fixed Broadband Internet service Level 5

Table C.3.5 Canadian Fixed Broadband Internet Service - Level 5: Over 100 Mbps
Year Halifax Montreal Toronto Winnipeg Regina Vancouver Average YoY%
2016 $133.10 $138.80 $92.91 $123.00 n/a $123.00 $114.65 n/a

n/a: not available

YoY: Year over Year Change

Table C.4: Canadian Fixed Broadband Internet Rates – Incumbents versus Reseller
City Service Provider Type Level 1 Level 2 Level 3 Level 4 Level 5
Halifax Incumbent $95.45 n/a n/a $82.90 $100.95
Reseller $45.08 n/a n/a n/a n/a
Difference -52.78% n/a n/a n/a n/a
Montreal Incumbent $37.95 $55.95 $53.95 $68.95 $130.95
Reseller $32.12 $36.12 $45.90 $57.12 n/a
Difference -15.38% -35.45% -14.92% -17.16% n/a
Toronto Incumbent $32.99 $64.95 $64.99 $74.99 $94.99
Reseller $29.95 $33.12 $42.12 $52.12 n/a
Difference -9.21% -49.01% -35.20% -30.50% n/a
Winnipeg Incumbent $53.00 n/a $67.00 $85.00 n/a
Reseller n/a n/a n/a n/a n/a
Difference n/a n/a n/a n/a n/a
Regina Incumbent $44.95 n/a $59.95 $79.95 n/a
Reseller n/a n/a n/a n/a n/a
Difference n/a n/a n/a n/a n/a
Vancouver Incumbent $53.00 $63.00 $68.00 $83.00 $123.00
Reseller $29.08 $39.08 $45.90 $89.08 n/a
Difference -45.14% -37.98% -32.50% 7.32% n/a
Unweighted Average Incumbent $52.89 $61.30 $62.78 $79.13 $112.47
Reseller $34.05 $36.10 $44.64 $66.10 n/a
Difference -35.61% -41.11% -28.89% -16.47% n/a
Figure C.4.1: Canadian Mobile Wireless Broadband Internet Service Level 1

Figure C.4.1. – Vertical bar chart for the Canadian Mobile Wireless Broadband Internet service Level 1

Table C.4.1: Canadian Mobile Wireless Broadband Internet Service - Level 1: 2 GB to less than 5 GB
Year Halifax Montreal Toronto Winnipeg Regina Vancouver Average YoY%
2010 $54.15 $54.15 $54.15 n/a $56.23 $54.16 $54.19 n/a
2011 $52.32 $52.76 $52.17 n/a $53.98 $52.22 $52.41 -3.3%
2012 $53.05 $52.56 $52.51 n/a $53.05 $52.51 $52.55 0.3%
2013 $45.12 $44.52 $44.37 n/a $48.99 $44.52 $44.55 -15.2%
2014 $43.75 $43.22 $43.19 n/a $47.08 $43.30 $43.30 -2.8%
2015 $43.06 $43.63 $43.19 $44.88 $50.38 $43.30 $43.55 0.6%
2016 $46.07 $45.72 $46.53 $48.00 $52.56 $46.53 $46.47 6.7%
CAGR -2.7% -2.8% -2.5% 7.0% -1.1% -2.5% -2.5% n/a

CAGR: Compound Annual Growth Rate from 2010 to 2016

n/a: not available

YoY: Year over Year Change

Figure C.4.2: Canadian Mobile Wireless Broadband Internet Service Level 2

Figure C.4.2. – Vertical bar chart for the Canadian Mobile Wireless Broadband Internet service Level 2

Table C.4.2: Canadian Mobile Wireless Broadband Internet Service - Level 2: 5 GB to less than 10 GB
Year Halifax Montreal Toronto Winnipeg Regina Vancouver Average YoY%
2012 $66.38 $60.94 $65.59 n/a $69.55 $70.22 $65.11 n/a
2013 $66.79 $59.22 $65.21 n/a $70.11 $71.28 $64.67 -0.7%
2014 $67.08 $59.49 $65.60 n/a $68.75 $65.90 $63.90 -1.2%
2015 $65.73 $60.57 $65.60 $68.63 $71.88 $65.90 $64.48 0.9%
2016 $62.47 $62.62 $63.19 $66.00 $71.31 $63.19 $63.30 -1.8%
CAGR -1.5% 0.7% -0.9% -3.8% 0.6% -2.6% -0.7% n/a

CAGR: Compound Annual Growth Rate from 2012 to 2016

n/a: not available

YoY: Year over Year Change

Figure C.4.3: Canadian Mobile Wireless Broadband Internet Service

Figure C.4.3. – Vertical bar chart for the Canadian Mobile Wireless Broadband Internet service Level 3

Table C.4.3: Canadian Mobile Wireless Broadband Internet Service - Level 3: 10 GB and more
Year Halifax Montreal Toronto Winnipeg Regina Vancouver Average YoY%
2016 $78.89 $81.07 $80.70 $84.50 $81.41 $80.70 $80.98 n/a

n/a: not available

YoY: Year over Year Change

Figure C.5.1: Canadian Bundled Services

Figure C.5.1. – Vertical bar chart for the Canadian Bundled Service Level 1

Table C.5.1: Canadian Bundled Services - Level 1: Wireline, Wireless & Fixed Broadband
Year Halifax Montreal Toronto Winnipeg Regina Vancouver Average YoY%
2008 $139.86 $141.61 $152.20 $125.07 $140.02 $152.47 $146.96 n/a
2009 $135.63 $141.37 $152.65 $132.22 $120.12 $122.22 $139.86 -4.8%
2010 $132.23 $135.16 $139.75 n/a $125.12 $118.30 $133.83 -4.3%
2011 $132.10 $131.72 $138.69 n/a $130.36 $124.54 $133.50 -0.2%
2012 $134.44 $140.06 $146.09 n/a $133.85 $129.11 $140.47 5.2%
2013 $131.27 $142.46 $144.41 n/a $141.80 $122.25 $139.15 -0.9%
2014 $130.02 $147.46 $147.28 n/a $137.55 $133.21 $143.95 3.4%
2015 $160.86 $152.89 $170.33 $133.71 $138.55 $140.76 $157.20 9.2%
2016 $158.19 $154.14 $176.67 $166.80 $134.72 $138.46 $161.63 2.8%
CAGR 1.6% 1.1% 1.9% 3.7% -0.5% -1.2% 1.2% n/a

CAGR: Compound Annual Growth Rate from 2008 to 2016

n/a: not available

YoY: Year over Year Change

Figure C.5.2: Canadian Bundled Services

Figure C.5.2. – Vertical bar chart for the Canadian Bundled Service Level 2

Table C.5.2: Canadian Bundled Services - Level 2: Wireline, Fixed Broadband & TV
Year Halifax Montreal Toronto Winnipeg Regina Vancouver Average YoY%
2008 $124.71 $118.68 $126.54 $114.83 $112.13 $111.40 $119.93 n/a
2009 $121.14 $123.46 $129.71 $121.76 $115.13 $110.31 $122.43 2.1%
2010 $120.37 $116.94 $123.39 n/a $119.47 $108.36 $118.41 -3.3%
2011 $121.46 $119.09 $129.92 n/a $127.52 $112.05 $122.87 3.8%
2012 $124.19 $127.91 $135.81 n/a $131.56 $111.81 $128.44 4.5%
2013 $127.95 $139.67 $140.25 n/a $133.57 $111.87 $134.19 4.5%
2014 $144.34 $134.74 $145.16 n/a $124.63 $123.57 $137.51 2.5%
2015 $171.00 $139.37 $147.79 $124.39 $124.66 $121.95 $139.78 1.6%
2016 $159.60 $130.85 $142.16 $141.65 $105.39 $124.25 $135.60 -3.0%
CAGR 3.1% 1.2% 1.5% 2.7% -0.8% 1.4% 1.5% n/a

CAGR: Compound Annual Growth Rate from 2008 to 2016

n/a: not available

YoY: Year over Year Change

Figure C.5.3: Canadian Bundled Services
Figure C.5.3. – Vertical bar chart for the Canadian Bundled Service Level 3
Table C.5.3: Canadian Bundled Services - Level 3: Wireline, Wireless, Fixed Broadband & TV
Year Halifax Montreal Toronto Winnipeg Regina Vancouver Average YoY%
2008 $178.86 $182.13 $183.94 $153.06 $148.97 $186.47 $181.31 n/a
2009 $169.03 $181.24 $182.81 $168.21 $142.07 $151.22 $172.68 -4.8%
2010 $169.19 $168.65 $169.82 n/a $145.81 $158.98 $167.01 -3.3%
2011 $170.01 $164.24 $177.48 n/a $160.04 $150.77 $167.81 0.5%
2012 $171.85 $171.99 $179.85 n/a $181.58 $166.61 $174.71 4.1%
2013 $165.50 $179.99 $183.73 n/a $186.56 $155.97 $176.80 1.2%
2014 $180.02 $179.87 $186.56 n/a $167.45 $174.55 $181.70 2.8%
2015 $217.93 $186.00 $195.47 $154.39 $170.48 $176.51 $187.33 3.1%
2016 $206.09 $177.55 $195.41 $186.80 $137.22 $172.50 $185.06 -1.2%
CAGR 1.8% -0.3% 0.8% 2.5% -1.0% -1.0% 0.3% n/a

CAGR: Compound Annual Growth Rate from 2008 to 2016

n/a: not available

YoY: Year over Year Change

APPENDIX D: INTERNATIONAL PRICE COMPARISONS

Figure D.1.1: International Fixed Telephony Service Basket Prices (PPP-Adjusted CA$)

Figure D.1.1. – Vertical bar chart for the International Fixed Telephony Level 1

Table D.1.1: International Fixed Telephony Service Basket Prices (PPP-Adjusted CA$)- Level 1: 400 Minutes with 10% LD
Year Canada U.S.A. Australia U.K. France Italy Germany Japan
2008 $30.88 $37.82 $43.35 $32.32 $28.73 n/a n/a n/a
2009 $29.80 $39.45 $45.20 $35.24 $31.24 n/a n/a n/a
2010 $31.16 $39.75 $44.45 $35.32 $31.53 n/a n/a $27.23
2011 $32.06 $44.84 $45.86 $34.35 $37.86 n/a n/a $29.55
2012 $33.42 $46.84 $46.57 $28.22 $32.34 n/a n/a $29.84
2013 $35.33 $45.88 $46.30 $31.68 $33.53 n/a n/a $30.45
2014 $38.99 $43.13 $46.80 $33.28 $35.10 $41.04 $36.55 $31.61
2015 $40.64 $38.49 $47.41 $36.60 $37.85 $40.09 $38.57 $30.41
2016 $39.52 $42.03 $51.43 $39.61 $37.61 $42.40 $42.93 $34.91
CAGR 3.1% 1.3% 2.2% 2.6% 3.4% 1.6% 8.4% 4.2%

CAGR: Compound Annual Growth Rate from 2008 to 2016

n/a: not available

Figure D.1.2: International Fixed Telephony Service Basket Prices (PPP-Adjusted CA$)

Figure D.1.2. – Vertical bar chart for the International Fixed Telephony Level 2

Table D.1.2: International Fixed Telephony Service Basket Prices (PPP-Adjusted CA$)- Level 2: 1,000 Minutes with 20% LD
Year Canada U.S.A. Australia U.K. France Italy Germany Japan
2008 $47.91 $67.63 $84.09 $45.71 $52.84 n/a n/a n/a
2009 $50.05 $71.15 $87.22 $49.68 $56.10 n/a n/a n/a
2010 $51.42 $69.13 $86.10 $47.74 $55.63 n/a n/a $53.30
2011 $49.81 $74.37 $73.02 $46.18 $54.83 n/a n/a $59.33
2012 $51.71 $74.75 $75.55 $39.57 $53.29 n/a n/a $60.00
2013 $55.77 $70.85 $77.05 $42.35 $51.93 n/a n/a $61.70
2014 $54.37 $66.61 $67.13 $42.81 $49.72 $51.02 $57.46 $65.36
2015 $59.44 $64.45 $64.31 $46.17 $47.37 $51.90 $59.24 $58.18
2016 $55.78 $58.46 $67.59 $50.59 n/a $45.81 $64.49 $57.46
CAGR 1.9% -1.8% -2.7% 1.3% -1.5% -5.2% 5.9% 1.3%

CAGR: Compound Annual Growth Rate from 2008 to 2016

n/a: not available

Figure D.1.3: International Fixed Telephony Service Basket Prices (PPP-Adjusted CA$)

Figure D.1.3. – Vertical bar chart for the International Fixed Telephony Level 3

Table D.1.3: International Fixed Telephony Service Basket Prices (PPP-Adjusted CA$)- Level 3: 1,600 Minutes with 30% LD
Year Canada U.S.A. Australia U.K. France Italy Germany Japan
2008 $60.27 $79.05 $94.21 $61.99 $61.74 n/a n/a n/a
2009 $61.55 $81.66 $96.32 $68.51 $67.35 n/a n/a n/a
2010 $60.78 $77.58 $94.98 $66.03 $64.65 n/a n/a $82.95
2011 $60.22 $79.59 $81.77 $60.86 $68.20 n/a n/a $91.61
2012 $60.52 $79.21 $89.81 $55.60 $64.76 n/a n/a $92.65
2013 $61.53 $76.08 $96.00 $61.35 $55.03 n/a n/a $97.17
2014 $60.29 $71.88 $74.54 $56.48 $52.39 $67.85 $60.89 $101.90
2015 $64.96 $72.48 $70.94 $59.97 $47.37 $66.32 $62.93 $90.31
2016 $60.32 $77.05 $72.23 $59.28 $57.41 $54.01 $77.11 $85.17
CAGR 0.0% -0.3% -3.3% -0.6% -0.9% -10.8% 12.5% 0.4%

CAGR: Compound Annual Growth Rate from 2008 to 2016

n/a: not available

Figure D.2.1: International Wireless Telephony Service Prices (PPP-Adjusted CA$)

Figure D.2.1. – Vertical bar chart for the International Wireless Telephony Service Prices level 1

Table D.2.1: International Wireless Telephony and Text Messaging Service (PPP-Adjusted CA$)- Level 1: 150 Minutes
Year Canada U.S.A. Australia U.K. France Italy Germany Japan
2008 $32.73 $40.92 $21.96 $26.57 $23.55 n/a n/a n/a
2009 $33.03 $42.51 $19.98 $24.33 $25.37 n/a n/a n/a
2010 $34.03 $40.43 $18.96 $23.31 $26.54 n/a n/a $24.20
2011 $33.73 $33.38 $20.95 $18.64 $26.13 n/a n/a $25.29
2012 $34.32 $33.78 $22.44 $17.21 $24.09 n/a n/a $25.53
2013 $30.71 $33.08 $21.82 $21.97 $20.24 n/a n/a $28.09
2014 $35.70 $30.34 $25.28 $26.46 $20.75 $10.85 $16.68 $28.88
2015 $37.29 $37.04 $25.35 $23.50 $14.26 $12.15 $15.23 $27.23
2016 $41.08 $27.00 $28.19 $20.84 $22.49 $17.70 $17.15 $29.06
CAGR 2.9% -5.1% 3.2% -3.0% -0.6% 12.0% 1.4% 3.1%

CAGR: Compound Annual Growth Rate from 2008 to 2016 

n/a: not available  

Figure D.2.2: International Wireless Telephony Service Prices (PPP-Adjusted CA$)

Figure D.2.2. – Vertical bar chart for the International Wireless Telephony Service Prices level 2

Table D.2.2: International Wireless Telephony and Text Messaging Service (PPP-Adjusted CA$) - Level 2: 450 Minutes and 300 TMS
Year Canada U.S.A. Australia U.K. France Italy Germany Japan
2008 $60.81 $64.54 $32.90 $53.98 $56.30 n/a n/a n/a
2009 $57.78 $66.38 $36.67 $44.73 $61.51 n/a n/a n/a
2010 $53.49 $60.60 $35.65 $37.27 $68.70 n/a n/a $44.34
2011 $50.51 $68.69 $36.97 $32.75 $74.86 n/a n/a $49.14
2012 $51.31 $72.94 $34.56 $38.43 $61.13 n/a n/a $49.28
2013 $44.86 $76.14 $35.04 $38.85 $44.08 n/a n/a $44.36
2014 $45.26 $55.91 $38.69 $41.17 $37.55 $33.61 $36.48 $50.98
2015 $48.68 $57.59 $38.98 $33.62 $40.87 $22.48 $35.35 $54.81
2016 $48.77 $51.64 n/a $25.79 $24.17 $24.41 $28.28 $48.78
CAGR -2.7% -2.7% 2.4% -8.8% -10.0% -14.8% -11.9% 1.6%

CAGR: Compound Annual Growth Rate from 2008 to 2016

n/a: not available 

Figure D.2.3: International Wireless Telephony Service Prices (PPP-Adjusted CA$)

Figure D.2.3. – Vertical bar chart for the International Wireless Telephony Service Prices level 3

Table D.2.3: International Wireless Telephony and Text Messaging Service (PPP-Adjusted CA$) - Level 3: 1,200 Minutes, 300 TMS and 1 GB Data
Year Canada U.S.A. Australia U.K. France Italy Germany Japan
2008 $112.34 $135.72 $96.75 $90.23 $110.46 n/a n/a n/a
2009 $103.24 $132.58 $93.13 $76.36 $109.08 n/a n/a n/a
2010 $109.59 $124.01 $91.93 $69.49 $109.37 n/a n/a $117.19
2011 $99.69 $139.03 $73.87 $64.27 $100.75 n/a n/a $120.21
2012 $98.37 $141.80 $52.35 $69.30 $84.77 n/a n/a $118.51
2013 $93.59 $145.79 $49.54 $63.52 $58.90 n/a n/a $125.24
2014 $79.69 $91.52 $72.10 $72.14 $63.68 $67.06 $71.15 $139.90
2015 $85.22 $85.65 $69.97 $68.03 $61.50 $53.94 $71.91 $88.96
2016 $74.67 $73.00 $30.91 $30.13 $38.08 $34.79 $56.20 $89.72
CAGR -5.0% -7.5% -13.3% -12.8% -12.5% -28.0% -11.1% -4.4%

CAGR: Compound Annual Growth Rate from 2008 to 2016 

n/a: not available 

Figure D.2.4: International Wireless Telephony Service Prices (PPP-Adjusted CA$)

Figure D.2.4. – Vertical bar chart for the International Wireless Telephony Service Prices level 4

Table D.2.4: International Wireless Telephony and Text Messaging Service (PPP-Adjusted CA$) - Level 4: Unlimited Minutes, TMS and 2 GB Data
Year Canada U.S.A. Australia U.K. France Italy Germany Japan
2014 $92.99 $109.28 $84.85 $58.37 $50.14 $61.52 $80.63 n/a
2015 $83.08 $92.23 $77.80 $62.03 $48.24 $63.47 $71.56 n/a
2016 $81.05 $89.50 $44.78 $35.55 $61.60 $49.42 $68.12 n/a
CAGR -6.6% -9.5% -27.4% -22.0% 10.8% -10.4% -8.1% n/a

CAGR: Compound Annual Growth Rate from 2008 to 2016

n/a: not available

Figure D.2.5: International Wireless Telephony Service Prices (PPP-Adjusted CA$)

Figure D.2.5. – Vertical bar chart for the International Wireless Telephony Service Prices level 5

Table D.2.5: International Wireless Telephony and Text Messaging Service (PPP-Adjusted CA$) - Level 5: Unlimited Minutes, TMS and 5 GB Data
Year Canada U.S.A. Australia U.K. France Italy Germany Japan
2015 $107.50 $131.12 $97.43 $68.93 $60.96 $77.44 $102.74 n/a
2016 $96.55 $117.33 $66.67 $42.22 $70.12 $61.02 $88.23 n/a
CAGR -10.2% -10.5% -31.6% -38.8% 15.0% -21.2% -14.1% n/a

CAGR: Compound Annual Growth Rate from 2008 to 2016

n/a: not available

Figure D.2.6: International Wireless Telephony Service Prices (PPP-Adjusted CA$)

Figure D.2.6. – Vertical bar chart for the International Wireless Telephony Service Prices level 6

Table D.2.6: International Wireless Telephony and Text Messaging Service (PPP-Adjusted CA$) - Level 6: Unlimited Minutes, TMS and 10 GB Data with 3 Lines
Year Canada U.S.A. Australia U.K. France Italy Germany Japan
2016 $231.99 $206.19 $198.50 $99.31 n/a n/a $284.12 n/a

n/a: not available

Figure D.3.1: International Fixed Broadband Internet Service Prices (PPP-Adjusted CA$)

Figure D.3.1. – Vertical bar chart for the International Fixed Broadband Internet Service Prices Level 1

Table D.3.1: International Fixed Broadband Internet Service Prices (PPP-Adjusted CA$) - Level 1: 3 to 9 Mbps
Year Canada U.S.A. Australia U.K. France Italy Germany Japan
2008 $32.88 $33.77 $42.79 $29.93 $42.23 n/a n/a n/a
2009 $30.98 $40.19 $41.31 n/a $44.87 n/a n/a n/a
2010 $31.44 $39.61 $34.91 n/a n/a n/a n/a $39.73
2011 $34.85 $51.06 $29.84 n/a $28.33 n/a n/a $43.13
2012 $39.37 $57.24 n/a n/a n/a n/a n/a $50.48
2013 $38.91 $52.38 n/a n/a n/a n/a n/a $45.55
2014 $50.00 $62.53 n/a n/a n/a n/a n/a $56.55
2015 $47.51 $54.54 n/a n/a n/a n/a n/a $57.83
2016 $41.94 $79.64 $58.38 n/a n/a n/a $28.28 n/a
CAGR 3.1% 11.3% 4.0% n/a -12.5% n/a n/a 7.8%

CAGR: Compound Annual Growth Rate from 2008 to 2016

n/a: not available

Figure D.3.2: International Fixed Broadband Internet Service Prices (PPP-Adjusted CA$)

Figure D.3.2. – Vertical bar chart for the International Fixed Broadband Internet Service Prices Level 2

Table D.3.2: International Fixed Broadband Internet Service Prices (PPP-Adjusted CA$) - Level 2: 10 to 15 Mbps
Year Canada U.S.A. Australia U.K. France Italy Germany Japan
2008 $46.58 $55.97 $62.56 $44.05 $45.82 n/a n/a n/a
2009 $47.26 $57.92 $63.76 $30.22 $48.69 n/a n/a n/a
2010 $47.60 $58.97 $52.01 $40.57 $44.03 n/a n/a $49.55
2011 $49.79 $65.14 $56.74 $40.72 $47.41 n/a n/a $53.79
2012 $54.31 $78.84 $59.81 $30.50 $46.97 n/a n/a $55.70
2013 $51.20 $81.42 $58.15 $32.85 n/a n/a n/a $52.53
2014 $55.10 $72.91 $50.67 $30.22 n/a $52.26 $26.09 $60.65
2015 $56.66 $67.66 $53.75 n/a $67.78 $54.31 $29.08 $61.03
2016 $58.88 $83.85 $54.49 n/a $73.83 $64.29 n/a $51.75
CAGR 3.0% 5.2% -1.7% -6.1% 6.1% 10.9% 11.4% 0.7%

CAGR: Compound Annual Growth Rate from 2008 to 2016

n/a: not available

Figure D.3.3: International Fixed Broadband Internet Service Prices (PPP-Adjusted CA$)

Figure D.3.3. – Vertical bar chart for the International Fixed Broadband Internet Service Prices Level 3

Table D.3.3: International Fixed Broadband Internet Service Prices (PPP-Adjusted CA$) - Level 3: 16 to 40 Mbps
Year Canada U.S.A. Australia U.K. France Italy Germany Japan
2008 $68.74 $67.40 $76.47 $52.72 $49.41 n/a n/a n/a
2009 $60.08 $70.41 $77.98 $35.93 $47.73 n/a n/a n/a
2010 $61.88 $75.26 $74.32 $46.24 $57.45 n/a n/a $72.15
2011 $63.44 $79.60 $59.72 $40.09 $66.37 n/a n/a $54.52
2012 $67.94 $97.00 $61.69 $40.88 $46.07 n/a n/a $59.37
2013 $65.18 $99.10 $57.10 $43.01 $49.34 n/a n/a $61.52
2014 $68.60 $79.76 $67.44 $46.89 $51.15 $52.92 $38.30 $63.88
2015 $67.81 $91.55 $69.64 $41.25 $51.68 $52.28 $47.08 $64.50
2016 $63.48 $97.53 $57.41 $40.43 n/a $41.77 $49.75 $71.52
CAGR -1.0% 4.7% -3.5% -3.3% 0.6% -11.2% 14.0% -0.1%

CAGR: Compound Annual Growth Rate from 2008 to 2016

n/a: not available

Figure D.3.4: International Fixed Broadband Internet Service Prices (PPP-Adjusted CA$)

Figure D.3.4. – Vertical bar chart for the International Fixed Broadband Internet Service Prices Level 4

Table D.3.4: International Fixed Broadband Internet Service Prices (PPP-Adjusted CA$) - Level 4: 41 to 100 Mbps
Year Canada U.S.A. Australia U.K. France Italy Germany Japan
2011 $77.71 $95.07 $67.19 $50.07 $49.79 n/a n/a $59.76
2012 $94.39 $160.97 $82.25 $58.66 $62.36 n/a n/a $62.65
2013 $82.88 $123.27 $72.69 $53.31 $54.58 n/a n/a $64.89
2014 $86.46 $103.17 $70.33 $47.76 $55.98 $61.79 $58.52 $67.73
2015 $80.63 $105.90 $72.66 $50.75 $57.95 $60.45 $59.32 $65.32
2016 $78.77 $112.30 $71.03 $54.20 $63.80 $53.02 $61.78 $49.78
CAGR 0.3% 3.4% 1.1% 1.6% 5.1% -7.4% 2.7% -3.6%

CAGR: Compound Annual Growth Rate from 2011 to 2016

n/a: not available

Figure D.3.5: International Fixed Broadband Internet Service Prices (PPP-Adjusted CA$)

Figure D.3.5. – Vertical bar chart for the International Fixed Broadband Internet Service Prices Level 5

Table D.3.5: International Fixed Broadband Internet Service Prices (PPP-Adjusted CA$) - Level 5: Over 100 Mbps
Year Canada U.S.A. Australia U.K. France Italy Germany Japan
2016 $114.65 $127.69 n/a $57.56 $70.54 n/a $56.57 $71.36

n/a: not available

Figure D.4.1: International Mobile Wireless Internet Service Basket Prices (PPP-Adjusted CA$)

Figure D.4.1. – Vertical bar chart for the International Mobile Wireless Broadband Internet Service Prices Level 1

Table D.4.1: International Mobile Wireless Internet Service Basket Prices (PPP-Adjusted CA$) - Level 1: 2 GB to less than 5 GB
Year Canada U.S.A. Australia U.K. France Italy Germany Japan
2010 $54.19 $73.26 $33.89 $24.86 $46.29 n/a n/a $76.00
2011 $52.41 $71.50 $27.18 $23.51 $43.30 n/a n/a $69.38
2012 $52.55 $52.29 $31.38 $27.42 $39.36 n/a n/a $54.89
2013 $44.55 $54.61 $28.80 $23.71 $34.98 n/a n/a $57.54
2014 $43.30 $63.74 $25.67 $21.90 $18.47 $17.56 $34.37 $50.05
2015 $43.55 $63.02 $28.15 $21.44 $17.60 $15.87 $25.96 $55.49
2016 $46.47 $50.68 $15.57 $17.61 $14.98 $14.35 $23.56 $51.81
CAGR -2.5% -6.0% -12.2% -5.6% -17.1% -9.6% -17.2% -6.2%

CAGR: Compound Annual Growth Rate from 2010 to 2016

n/a: not available

Figure D.4.2: International Mobile Wireless Internet Service Basket Prices (PPP-Adjusted CA$)

Figure D.4.2. – Vertical bar chart for the International Mobile Wireless Broadband Internet Service Prices Level 2

Table D.4.2: International Mobile Wireless Internet Service Basket Prices (PPP-Adjusted CA$) - Level 2: 5 GB to less than 10 GB
Year Canada U.S.A. Australia U.K. France Italy Germany Japan
2012 $65.11 $69.51 $44.85 $39.11 $100.15 n/a n/a $56.77
2013 $64.67 $59.82 $35.13 $62.01 $44.65 n/a n/a $58.24
2014 $63.90 $69.05 $36.80 $45.93 $43.04 $25.86 $49.70 $62.04
2015 $64.48 $77.72 $41.69 $30.60 $29.18 $27.05 $37.17 $63.82
2016 $63.30 $76.93 $29.67 $21.07 $28.11 $21.71 $37.31 $73.74
CAGR -0.7% 2.6% -9.8% -14.3% -27.2% -8.4% -13.4% 6.8%

CAGR: Compound Annual Growth Rate from 2012 to 2016

n/a: not available

Figure D.4.3: International Mobile Wireless Internet Service Basket Prices (PPP-Adjusted CA$)

Figure D.4.3. – Vertical bar chart for the International Mobile Wireless Broadband Internet Service Prices Level 3

Table D.4.3: International Mobile Wireless Internet Service Basket Prices (PPP-Adjusted CA$) - Level 3: 10 GB and more
Year Canada U.S.A. Australia U.K. France Italy Germany Japan
2016 $80.98 $110.38 $48.17 $24.47 $63.45 $31.58 n/a $87.09

n/a: not available

Figure D.5.1: International Bundled Services Prices (PPP-Adjusted CA$)

Figure D.5.1. – Vertical bar chart for the International Bundled Services Prices Level 1

Table D.5.1: International Bundled Service Basket Prices (PPP-Adjusted CA$) - Level 1: Wireline, Wireless & Fixed Broadband
Year Canada U.S.A. Australia U.K. France Italy Germany Japan
2008 $146.96 $175.99 $153.82 $137.87 $138.18 n/a n/a n/a
2009 $139.86 $177.74 $159.31 $126.45 $149.89 n/a n/a n/a
2010 $133.83 $164.61 $132.28 $105.80 $143.16 n/a n/a $137.08
2011 $133.50 $182.65 $145.28 $95.36 $140.15 n/a n/a $149.91
2012 $140.47 $187.07 $152.47 $98.57 $121.94 n/a n/a $157.73
2013 $139.15 $185.00 $146.45 $111.39 $95.62 n/a n/a $149.63
2014 $143.95 $163.11 $150.32 $105.40 $70.56 $107.94 $111.52 $161.38
2015 $157.20 $154.78 $145.98 $94.07 $82.75 $104.39 $131.06 $156.57
2016 $161.63 $141.40 n/a $67.19 n/a n/a $116.68 $154.11
CAGR 1.2% -2.7% -0.7% -8.6% -7.1% -3.3% 2.3% 2.0%

CAGR: Compound Annual Growth Rate from 2008 to 2016

n/a: not available

Figure D.5.2: International Bundled Services Prices (PPP-Adjusted CA$)

Figure D.5.2. – Vertical bar chart for the International Bundled Services Prices Level 2

Table D.5.2 International Bundled Service Basket Prices (PPP-Adjusted CA$) - Level 2: Wireline, Fixed Broadband & TV
Year Canada U.S.A. Australia U.K. France Italy Germany Japan
2008 $119.93 $155.09 $146.07 $88.88 $86.41 n/a n/a n/a
2009 $122.43 $163.81 $150.86 $91.21 $91.78 n/a n/a n/a
2010 $118.41 $164.95 $131.00 $92.72 $95.34 n/a n/a $126.99
2011 $122.87 $173.88 $139.49 $82.21 $73.72 n/a n/a $137.73
2012 $128.44 $177.15 $148.88 $69.98 $68.23 n/a n/a $145.47
2013 $134.19 $167.92 $145.27 $80.55 $69.17 n/a n/a $137.23
2014 $137.51 $172.07 $142.49 $70.32 $69.91 $93.79 $110.38 $149.72
2015 $139.78 $168.62 $136.44 $77.54 $54.35 $91.64 $118.08 $136.93
2016 $135.60 $145.92 $91.85 $45.17 $60.55 $66.94 $63.54 $151.08
CAGR 1.5% -0.8% -5.6% -8.1% -4.3% -15.5% -24.1% 2.9%

CAGR: Compound Annual Growth Rate from 2008 to 2016

n/a: not available

Figure D.5.3: International Bundled Services Prices (PPP-Adjusted CA$)

Figure D.5.3. – Vertical bar chart for the International Bundled Services Prices Level 3

Table D.5.3: International Bundled Service Basket Prices (PPP-Adjusted CA$) - Level 3: Wireline, Wireless, Fixed Broadband & TV
Year Canada U.S.A. Australia U.K. France Italy Germany Japan
2008 $181.31 $215.13 $181.60 $140.62 $141.43 n/a n/a n/a
2009 $172.68 $213.23 $190.36 $115.19 $153.35 n/a n/a n/a
2010 $167.01 $210.52 $164.62 $117.04 $162.78 n/a n/a $172.52
2011 $167.81 $238.27 $179.27 $115.51 $146.56 n/a n/a $192.70
2012 $174.71 $240.65 $186.13 $113.31 $126.39 n/a n/a $202.02
2013 $176.80 $224.09 $178.24 $122.98 $101.35 n/a n/a $182.62
2014 $181.70 $214.39 $182.43 $101.52 $93.21 $124.94 $157.98 $202.99
2015 $187.33 $196.20 $175.67 $95.72 $93.64 $116.97 $156.78 $194.36
2016 $185.06 $196.70 $142.45 $65.27 $98.63 $81.91 $127.15 $198.54
CAGR 0.3% -1.1% -3.0% -9.1% -4.4% -19.0% -10.3% 2.4%

CAGR: Compound Annual Growth Rate from 2008 to 2016

n/a: not available

APPENDIX E: MOBILE WIRELESS – BRING YOUR OWN DEVICE (BYOD) ANALYSIS

Analysis 1:

Table E.1: Overview of Wireless Device Options for Consumers (Bring Your Own Device versus Fixed Term Contract)
Service Provider Lite Device
Brand Model
With BYOD: Lite Device Without BYOD Subsidy on retail price
(see note 3)
Purchase Price Monthly Rate Savings Present Worth of Savings Net Cost to Subscriber Contract Term (Months) Upfront Cost
A B (see note 2) C = A - B D (C -D)/A x 100
Bell Alcatel Onetouch Idol 3 $349.95 n/a - $349.95 24 n/a n/a
TELUS Alcatel Idol 3 $360.00 $5.00 $118.15 $241.85 24 n/a n/a
Rogers Samsung Galaxy A5 $399.99 n/a - $399.99 24 n/a n/a
MTS LG G3 Vigor $399.00 n/a - $399.00 24 n/a n/a
Sasktel Blackberry Leap $349.99 n/a - $349.99 24 n/a n/a
Fido - Flanker (Rogers) LG G Stylo $300.00 $10.00 $236.29 $63.71 24 n/a n/a
Virgin - Flanker (Bell) Sony Xperia M4 Aqua $349.00 $10.00 $236.29 $112.71 24 n/a n/a
Koodo - Flanker (TELUS) Alcatel Onetouch Idol 3 $312.00 $7.00 $165.40 $146.60 24 n/a n/a
Eastlink - New Entrant Samsung Galaxy Grand Prime $288.00 $7.00 $165.40 $122.60 24 n/a n/a
Videotron - New Entrant LG G4 VIGOR $329.95 $13.00 $307.18 $22.77 24 n/a n/a
Primus - MVNO Samsung Galaxy Core LTE $309.00 $3.00 $70.89 $238.11 24 n/a n/a
PC Mobile - MVNO LG G3 $360.00 $14.00 $330.81 $29.19 24 n/a n/a
Wind - New Entrant LG G Stylo $349.00 $15.00 $354.44 ($5.44) 24 n/a n/a
  1. Chatr and Mobilicity (Flankers – Rogers) and Speakout (7-eleven), PC Mobile, PetroCanada (MVNOs) only offer pre-paid plans.
  2. Present Worth of savings calculated using 2-year risk free bond yield, estimated to be 1.5% per annum over 24 months
  3. Subsidy calculations do not consider operational/business factors from service provider's perspective such as impact on churn rate, ARPU, and ordering cost etc.

Analysis 2:

Table E.2: Overview of Wireless Device Options for Consumers (Bring Your Own Device versus Fixed Term Contract)
Service Provider Premium Device
Brand Model
With BYOD: Premium Device Without BYOD Subsidy on retail price (see note 3)
Purchase Price Monthly Rate Savings Present Worth of Savings Net Cost to Subscriber Contract Term (Months) Upfront Cost
A B (see note 2) (C) = (A) - (B) D (C -D)/A x 100
Bell iPhone 6s 16GB $914.99 $10.00 $236.29 $678.70 24 $398.00 30.7%
TELUS iPhone 6s 16GB $915.00 $15.00 $354.44 $560.56 24 $400.00 17.5%
Rogers iPhone 6s 16GB $899.99 $10.00 $236.29 $663.70 24 $399.90 29.3%
MTS iPhone 6s 16GB $899.99 - - $899.99 24 $399.00 55.7%
Sasktel iPhone 6s 16GB $914.99 - - $914.99 24 $398.00 56.5%
Fido-Flanker (Rogers) iPhone 6s 16GB $899.99 $15.00 $354.44 $545.55 24 $399.00 16.3%
Virgin-Flanker (Bell) iPhone 6s 16GB $914.99 $15.00 $354.44 $560.55 24 $398.99 17.7%
Koodo-Flanker (TELUS) iPhone 6 16GB $774.00 $15.00 $354.44 $419.56 24 $414.00 0.7%
Eastlink-New Entrant iPhone 6 16GB $899.99 $31.21 $737.46 $162.53 24 n/a n/a
Videotron-New Entrant iPhone 6 16GB $899.99 $21.00 $496.21 $403.78 24 $319.95 9.3%
Primus-MVNO - Does not offer premium devices n/a n/a
PC Mobile-MVNO - Does not offer premium devices n/a n/a
Wind-New Entrant Samsung Galaxy N5 $849.00 $5.00 $118.15 $730.85 24 $299.00 50.9%
  1. Chatr and Mobilicity (Flankers – Rogers) and Speakout (7-eleven), PC Mobile, PetroCanada (MVNOs) only offer pre-paid plans.
  2. Present Worth of savings calculated using 2-year risk free bond yield, estimated to be 1.5% per annum over 24 months
  3. Subsidy calculations do not consider operational/business factors from service provider's perspective such as impact on churn rate, ARPU, and ordering cost etc.
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