Communications Monitoring Report 2017: Canada’s Communication System: An Overview for Canadians

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2.0 Canada’s Communication System: An Overview for Canadians

The CRTC continues to strengthen its efforts to place Canadians at the centre of the communication system, whether as consumers of communications products and services; creators and distributors of content; or citizens who need access to information, products, and services to fully engage in a democratic society. This section focuses on Canadians’ use of communications services, competitive prices, household expenditures, and access to communications services.Footnote 1 This year, this section also provides additional analysis of the wireless service industry and its regulation.

In 2015, household expenditures on Internet services and wireless services grew by 9.63% and 5.54%, respectively, over the previous year, while expenditures on wireline telephone services and broadcasting distribution services decreased by 9.5% and 3.3%, respectively, over the same period.

While average household expenditures on wireless services represent the largest expenditures on communications services, expenditures on Internet services have been increasing by 7.7% per year on average from 2011 to 2015, representing the fastest-growing expenditures category for households.

In 2015, Canadian households spent an average of $218.42 per month for their communications services, an increase of $3.67 (or 1.7%) from 2014. The average annual inflation rate in Canada was 1.1% in 2015 according to Statistics Canada.

In 2015, Canadian households continued to spend more per month on wireless services ($87.25) and BDU services ($54.50) compared to Internet services ($46.50) and wireline telephone services ($30.17).

In 2015, average communications service expenditures as a percentage of average household annual income decreased slightly from 3.0% to 2.9%. However, households in the first and second income quintilesFootnote 2 spent, on average, 8.6% and 5.0% of their average annual incomes on communications services.

The percentage of Canadian households subscribing exclusively to wireless services reached 27.5% in 2015.

First- and second-income-quintile households still lead in the wireless-service-only category with 35% and 30.4%, respectively. However, an increasing number of households in the fifth income quintile are forgoing wireline telephone services in favour of relying solely on wireless telephone services.

In 2015, 18.8% of households in the fifth and highest income quintile were wireless only households, compared to 11.5% in 2014, an increase of over 60%.

i) Industry landscape and competition

Canada’s communication system is composed of two broad sectors: broadcasting and telecommunications. In 2016, total communications service revenues increased by 1.4% since 2015. However, this overall growth masks important divergences across individual types of services. While detailed financial information can be found in separate sections of this report, this section presents an overview of industry revenues and the competitive landscape in the broadcasting and telecommunications industries.

Table 2.0.1 Annual communications service industry revenues ($ billions)
Categories 2014 2015 2016 Growth (%) 2015-2016

Communications

64.1 65.8 66.6 1.3

Broadcasting

18.2 18.0 17.9 -0.5

Radio

1.9 1.9 1.8 -2.0

TV

7.4 7.2 7.3 1.7

BDU

8.9 8.9 8.7 -2.1

Telecommunications (retail and wholesale)

45.9 47.8 48.7 2.0

Wireline voice (local and long distance)

10.1 9.7 9.0 -7.6

Internet

8.9 9.8 10.8 9.8

Data and private line

4.8 4.6 4.5 -3.0

Wireless (local and long distance)

22.0 23.6 24.4 3.4

Source: CRTC data collection

What are BDUs?

Broadcasting distribution undertakings (BDUs) provide subscription television services to Canadians. They redistribute programming from conventional over-the-air television and radio stations. They also distribute pay audio and discretionary services (i.e. pay, specialty, pay-per-view (PPV) and video-on-demand (VOD) services). Most BDUs are cable, national direct-to-home (DTH) satellite, or Internet Protocol television (IPTV) service providers.

Telecommunications services remain dominant

In 2016, revenues from telecommunications services continued to represent approximately 73% of all communications service revenues, with broadcasting service revenues representing the remaining 27%. This speaks in part to the scale of revenues from mobile wireless services, which accounted for nearly half of all telecommunications service revenues. Indeed, mobile wireless services alone generated more revenues than the entire broadcasting sector.

As noted above, more Canadians now subscribe exclusively to mobile wireless services than to wireline telephone services. This reflects financial data trends that demonstrate relatively consistent mobile service revenue growth.

A similar phenomenon – one in which certain services drive overall sector growth while other services remain flat or shrink – has emerged across multiple subsectors of the communication system. Services introduced in the early-to-mid-20th century, including wireline voice services, conventional television services, and radio services continue to be widely used by many Canadians. However, these services’ revenues have not grown at the same pace as those of newer services; in many cases, they have even declined.

A concentrated market

The competitive landscape in the communication system as a whole remains mostly unchanged from last year. Large vertically and horizontally integrated entities hold dominant market positions. As Figure 2.0.1 indicates, the top five broadcasting and telecommunications groups/entities (Bell Canada, Quebecor, Rogers, TELUS, and Shaw/Corus) together accounted for approximately 83% of total industry revenues in 2016, a slight increase compared to 2014 and 2015 data.

Figure 2.0.1 Percentage of total combined revenues, by broadcasting and telecommunications ownership groups

Bar chart of Figure 2.0.1: Percent of total combined revenues, by broadcasting and telecommunications ownership groups Bar chart of Figure 2.0.1: Percent of total combined revenues, by broadcasting and telecommunications ownership groups
Text Description of Image

This bar chart shows the percent of total combined revenues, by broadcasting and telecommunications groups from 2014 to 2016.

Group 2014 2015 2016
Top 5 groups 82 82 83
Next 5 groups 10 10 9
Remaining groups/entities 8 8 8

Source: CRTC data collection

Bundling

Market concentration plays a role in the rise of bundling, since the largest entities are well positioned to offer their customers discounts in exchange for subscribing to a range of services. The table below shows the number of subscriptions to two or more services with one company. From 2012 to 2013, the number of subscriptions to bundled services increased from 10.0 million to 10.4 million. Following a stagnation in the number of bundled service subscriptions from 2013 to 2014, bundled service subscriptions decreased for two subsequent years. In 2016, bundled service subscriptions were lower than what they were almost 4 years earlier, which shows that the market might have reached its saturation point in 2014.

Table 2.0.2 Number of subscriptions with bundled services (millions)
Measure 2012 2013 2014 2015 2016 2012-2016 CAGRFootnote 3 (%)
Number of subscriptions with bundled services 10.0 10.4 10.4 10.2 9.6 -0.8
Growth (%) 1.4 4.8 -0.3 -2.2 -5.3 n/a

Source: CRTC data collection

ii) Communications service expenditures and prices

The amounts that Canadian households spend on communications services provide an important perspective on how communications services impact the household budget. These data also point, to a certain extent, to national shifts in demand and the competitive landscape.

However, it is important to recognize the limitations of expenditure data. First, the data may overlook the fact that certain free services, such as over-the-air television and radio services, remain valuable to Canadians. Second, the average expenditure amount takes into account all households, including those that do not subscribe to one or more services. As a result, expenditures by households that purchase services may appear lower or higher than they actually are.

Spending on communications services continues to riseFootnote 4

Throughout 2015, the average Canadian household spent $218.42 per month on communications services, an increase of $3.67 (1.71%) from 2014. Similar to 2014, Internet services and mobile wireless services drove household expenditure growth and telecommunications industry revenues.

In 2015, expenditures on Internet services took the lead in terms of growth (9.6%), followed by expenditures on mobile wireless services (5.5%). These increases reflect the observed trends in subscriptions to higher Internet speeds and to mobile plans with more data.

While there is considerable variance between the average amounts spent by Canadians in each income quintile, households tended to devote a larger amount of their communications service budget to either mobile wireless services or cable IPTV services and DTH satellite services. However, spending on cable, IPTV, and DTH services decreased across all income quintiles between 2014 and 2015. Household wireline telephone service expenditures also decreased across all income quintiles, although at a faster pace than expenditures on cable, IPTV, and DTH services.

On average, household spending on BDU services decreased by 3.25% from 2014 to 2015, while average household spending on wireline telephone services decreased by 9.5% during the same period. In both cases, spending decreased across all income quintiles, although the decrease in expenditures was the least pronounced in households in the first income quintile, while expenditures by households in the fourth income quintile decreased the most.

Table 2.0.3 Monthly household spending on communications services, by service and by income quintile ($/month/household)
Service Year First quintile Second quintile Third quintile Fourth quintile Fifth quintile Average of all quintiles CAGR (%) of average of all quintiles (2011-2015)

Wireline telephone

2013 29.08 33.50 36.08 38.17 41.00 35.58

-6.91

2014 26.58 31.08 32.50 36.17 40.33 33.33
2015 25.50 28.08 29.83 31.50 36.08 30.17
Growth 2014-2015 (%) -4.08 -9.65 -8.21 -12.90 -10.54 -9.50

Mobile wireless

2013 42.42 55.92 77.25 91.75 127.00 78.92

6.73

2014 43.92 60.42 80.83 100.42 127.83 82.67
2015 43.75 62.25 84.83 105.33 140.08 87.25
Growth 2014-2015 (%) -0.38 3.03 4.95 4.90 9.58 5.54

Internet

2013 25.58 35.25 42.08 48.00 52.42 40.67

7.68

2014 29.50 37.17 44.17 48.75 52.67 42.42
2015 30.58 41.58 49.92 53.75 56.83 46.50
Growth 2014-2015 (%) 3.67 11.88 13.02 10.26 7.91 9.63

Cable, IPTV, and DTH

2013 37.00 49.33 57.67 64.58 74.50 56.58

-0.34

2014 38.92 49.42 56.92 62.25 74.17 56.33
2015 38.83 46.92 55.42 58.75 72.42 54.50
Growth 2014-2015 (%) -0.21 -5.06 -2.64 -5.62 -2.36 -3.25

Total

2013 134.08 174.00 213.08 242.50 294.92 211.75

2.58

2014 138.92 178.08 214.42 247.58 295.00 214.75
2015 138.67 178.83 220.00 249.33 305.42 218.42
Growth 2014-2015 (%) -0.18 0.42 2.60 0.71 3.53 1.71
CAGR 2011-2015 (%) 2.65 1.92 2.43 2.83 2.83 2.58

Source: Statistics Canada’s Survey of Household Spending

All data in Table 2.0.3 was collected and analyzed to show the growth percentages between 2014 and 2015, the most recent data available. The expenditure data reflects average expenditures per household and excludes sales tax.

Similar to previous years, household spending on mobile wireless, Internet, and overall communications services continued to grow in 2015. Household spending on wireline telephone services and Internet services fluctuated the most from 2014 to 2015: spending on wireline telephone services decreased 9.5% and spending on Internet services increased 9.6%.

Overall, households spent the most on mobile wireless services ($87.25). On average, for all income quintiles, spending on wireline services declined from 2011 to 2015 at a compound annual growth rate (CAGR) of -6.9%. However, average expenditures on Internet services for all income quintiles show the largest growth (9.63%) between 2014 and 2015, and the strongest 2011 to 2015 CAGR (7.68%).

Although average household spending on communications services increased 1.71% between 2014 and 2015, households in the highest income quintiles spent more on communications services than those in the lower quintiles. This is reflected in the total growth of expenditures in each income quintile. Expenditures by households in the first income quintile stayed somewhat stable between 2014 and 2015, showing only a slight decrease (-0.18%), while expenditures by households in the fifth income quintile increased the most (3.53%).

Even though spending on communications services by lower-income households was less than that by higher-income households, as shown in Table 2.0.3, expenditures on communications services take up a significantly larger percentage of their annual incomes – as Table 2.0.4 shows.

Table 2.0.4 Household spending on communications services, by income quintile, 2015
Characteristics Household income less than $31,608 (first quintile) Household income from $31,609 to $54,587 (second quintile) Household income from $54,588 to $82,709 (third quintile) Household income from $82,710 to $126,878 (fourth quintile) Household income over $126,879 (fifth quintile) Average of all quintiles
Average annual income $19,403 $42,887 $68,331 $103,021 $210,693 $88,867
Members per household 1.43 2.11 2.57 2.91 3.35 2.47
Communications expenditures as a percentage of annual income 8.6% 5.0% 3.9% 2.9% 1.7% 2.9%

Source: Statistics Canada’s Survey of Household spending

Income quintiles represent each 20% of households by average annual income.

Based on Statistics Canada’s Survey of Household Spending, the average annual household income before taxes in Canada in 2015 was $88,867. The Canadian provincial average annual household income before taxes ranged from $71,436 to $127,859. Alberta had the highest average ($127,859), followed by Saskatchewan ($94,007). From 2014 to 2015, the average annual household income increased for each income quintile except for the first quintile, which decreased $261 from $19,664 to $19,403.

Between 2014 and 2015, the average number of members per household remained constant. However, the average annual household income increased by 2.9%, while expenditures on communications services increased by 1.7%, resulting in a decrease in expenditures on communications services as a percentage of annual household income, from 3.0% in 2014 to 2.9% in 2015.

Figure 2.0.2 Monthly household expenditures, by service and by age of reference person ($/month/household), 2015

Stacked bar chart of Figure 2.0.2: Monthly household expenditures, by service and by age of reference person ($/month/household), 2015 Stacked bar chart of Figure 2.0.2: Monthly household expenditures, by service and by age of reference person ($/month/household), 2015
Text Description of Image

This stacked bar chart shows monthly household expenditures, by service and by age of reference person in 2015.

Category Mobile wireless Cable and DTH Internet Wireline telephone Total
Less than 30 years 112.75 32.17 50.83 8.92 204.67
30 to 39 years 100.58 45.25 50.67 17.92 214.42
40 to 54 years 112.50 57.42 52.42 30.08 252.42
55 to 64 years 83.17 64.83 47.58 38.83 234.42
65 years and older 38.08 59.17 33.50 41.83 172.58

Source: Statistics Canada’s Survey of Household Spending

In 2015, persons in all age groups except those aged 65 years and over spent the least on wireline telephone services. Persons in all age groups, excluding those aged 65 years and over, also spent the most on mobile wireless services. Persons under 30 years of age spent the most on mobile wireless services ($112.75 per month), which is more than 12 times the amount they spent, on average, on landline telephone services ($8.92 per month). Persons aged 40 to 54 spent the most on communications services ($252.42 per month), while persons aged 65 years and over spent the least ($172.58 per month).

A true generation gap is demonstrated in the amount spent on communications services between persons aged less than 30 years and persons aged 65 years and over, since the youngest generation tends to spend more on communications services, specifically on mobile wireless services ($112.75 per month). However, although members of the eldest generation spent the least on communications services, they spent the most on wireline telephone services ($41.83 per month).

Figure 2.0.2 demonstrates the difference in importance of a service for persons in different age groups through the amount spent per service. For instance, persons under 30 years of age spent the least on wireline telephone services ($8.92), whereas persons 65 years and over spent almost four times that amount ($41.83).

Price indices

Price indices offer a perspective on the extent to which prices for a basket of goods and services change over time. Figure 2.0.3 shows the price changes for fixed baskets of telecommunications services (telephone and Internet services), and BDU services (cable, DTH satellite, and IPTV services), as well as overall price changes as measured by the Consumer Price Index (CPI). By maintaining a consistent basket of goods and services and comparing prices in the current year to the index reference period (2002), these indices measure price changes accurately.

Telephone services index:

The telephone services index reflects the price changes experienced over time by a household for a fixed basket of telephone services, including both landline and mobile wireless services. This type of basket reflects a weighted average of consumer expenditures on basic local services, as well as other local telephone services, such as options and features, long distance services, installation, and repair services. This index does not include Internet service expenditures.

BDU services index:

The BDU services index includes cable, DTH satellite, and IPTV (including pay television) services and reflects the price changes experienced over time by a household for a basket of subscription-based television services. This basket includes both “basic” and “extended” television distribution services. Basic service is the minimum service to which all customers must subscribe. Extended service is the most popular package of additional channels. This index does not account for bundling discounts.

Internet services index:

The Internet services index reflects the price changes experienced over time by a household for a constant quantity and quality of Internet services. This basket includes a monthly Internet access service subscription through wireline service to the household. This index does not include access to the Internet bundled with wireless voice services.

Figure 2.0.3 Price indices for telephone services, BDU services, and Internet services compared to the CPI

Line chart of Figure 2.0.3: Price indices for telephone services, BDU services and Internet services, compared to the CPI Line chart of Figure 2.0.3: Price indices for telephone services, BDU services and Internet services, compared to the CPI
Text Description of Image

This line chart shows the consumer price index (CPI) from 2006 to 2016.

Year CPI Telephone services BDU services Internet access services
2006 109.12 100.91 116.80 96.68
2007 111.45 101.58 122.74 97.46
2008 114.09 105.90 128.68 95.76
2009 114.43 106.53 135.78 94.80
2010 116.47 111.21 143.43 95.83
2011 119.86 112.26 151.42 100.92
2012 121.68 114.64 159.01 105.18
2013 122.82 116.43 162.82 109.13
2014 125.16 120.36 166.56 117.84
2015 126.57 123.73 170.67 123.69
2016 128.38 123.42 178.31 124.67

Source: Statistics Canada

As measured by the CPI, average annual inflation in Canada was 1.4% in 2016. In comparison, from 2015 to 2016, the prices of key communications services changed by -0.3% (telephone services), 4.5% (BDU services), and 0.8% (Internet access services). As shown above, telephone service prices decreased in 2016 for the first time in over 10 years.

Overall, the CPI increased at an average annual rate of 1.6% over the 2006-2016 period, while telephone, Internet, and BDU service prices increased at average annual rates of 2.0%, 2.6%, and 4.3%, respectively, over the same period.

National prices – Urban vs. rural

The following figures present broadband, wireline, and wireless service pricing on a national scale for rural and urban communities to show the price differences between regions and services. More detailed information on wireline telephone service pricing can be found in section 5.2 of the report, details on broadband service pricing can be found in section 5.3, and details on wireless service pricing can be found in section 5.5.

The number at the end of each bar in figures 2.0.4 and 2.0.5 represent the highest price reported. The number of service providers in each province (in both urban and rural communities) is indicated in parentheses. For example, “B.C. broadband (2/3)” means that the number of service providers in the communities in British Columbia included in the survey varied between 2 and 3.

Prices for broadband, basic local wireline, and wireless services were compared in urban and rural communities. Depicted broadband service prices are based on the least expensive service with a 5 Mbps download speed and a 1 Mbps upload speed or greater offered by the service provider. Basic local wireline services include unlimited calling within a specified geographic area, 9-1-1 services, message relay services, and access to long distance services. Figure 2.0.4 displays the prices of basic local telephone services on a stand-alone basis in a number of rural communities. Mobile wireless services include 1,200 minutes or greater of voice service, at least 300 SMS, and over 2 GB of data per month, since 81% of subscribers have data plans and used on average 1,570 MB of data per month in 2016.

Figure 2.0.4 Broadband, wireline, and wireless pricing comparison in rural communities, per province/territory, 2016

Three-series horizontal bar chart of Figure 2.0.4: Broadband, wireline and wireless pricing comparison in rural communities, per province/territory, 2016 Three-series horizontal bar chart of Figure 2.0.4: Broadband, wireline and wireless pricing comparison in rural communities, per province/territory, 2016
Text Description of Image

This three-series horizontal bar chart shows the highest and lowest monthly prices in dollars for broadband, wireline and wireless services in rural areas on a per province basis, as well as number of providers in each centre.

Province, Service Providers Minimum Variance Maximum
BC wireless 3 45 40 85
BC wireline 1 35 1 36
BC broadband 5/6 30 50 80
Alberta wireless 3 64 21 85
Alberta wireline 1 36 0 36
Alberta broadband 2/7 30 50 80
Sask wireless 4 55 30 85
Sask wireline 1 32 0 32
Sask broadband 2/3 53 32 85
Manitoba wireless 4 54 31 85
Manitoba wireline 1 31 0 31
Manitoba broadband 2/3 60 5 65
Ontario wireless 3 55 9 64
Ontario wireline 0/2 28 10 38
Ontario broadband 3/6 25 50 75
Québec wireless 4 40 25 65
Quebec wireline 1/2 28 7 35
Quebec broadband 3/7 27 43 70
NB wireless 3 55 10 65
NB wireline 1 27 0 27
NB broadband 3 33 55 88
PEI wireless 4 55 11 66
PEI wireline 2 31 1 32
PEI broadband 3 65 23 88
NS wireless 4 55 20 75
NS wireline 1 31 0 31
NS broadband 1/2 75 13 88
Nfld wireless 3 55 21 76
Nfld wireline 2 25 7 32
Nfld broadband 2/3 75 13 88
Yukon wireless 2 64 21 85
Yukon wireline 1 33 0 33
Yukon broadband 2 75 9 84
NWT wireless 2 64 21 85
NWT wireline 1 33 0 33
NWT broadband 2 75 36 111
Nunavut wireless 2 64 21 85
Nunavut wireline 1 33 0 33
Nunavut broadband 1 75 0 75

Source: CRTC data collection

Broadband in rural communities

The average minimum price is $53.67 per month for broadband services in rural Canada. Ontario has the lowest price for broadband services in rural communities ($24.95 per month) compared to the other provinces/territories. The Northwest Territories have the highest reported price for broadband services in rural communities ($110.95 per month). The variance data was calculated by finding the difference between the minimum and maximum prices in each province/territory. The widest range of prices is in New Brunswick, where prices range from a minimum of $32.99 to a maximum of $88.45 per month, a variance of $55.46.

Basic local wireline in rural communities

The minimum prices for basic local wireline services are relatively the same among the provinces/territories, with an average of $31.05 per month. The lowest price, $25.36 per month, is found in Newfoundland and Labrador. Similar to last year, Ontario has the highest maximum price of $37.99 per month.

Wireless in rural communities

The lowest reported price for wireless services in rural communities is approximately $55.71 per month on average. Once again, Quebec has the lowest price at $40.00 per month. Most provinces and territories (Nunavut, the Northwest Territories, Yukon, Manitoba, Saskatchewan, Alberta, and British Columbia) have the same maximum price of $85.00 per month. British Columbia has the highest variance at $40.00.

Overall, prices in rural communities are highest for broadband services, with wireless service pricing not too far behind.

Figure 2.0.5 Broadband, wireline, and wireless service pricing comparison in urban communities, per province/territory, 2016

Three-series horizontal bar chart of Figure 2.0.5: Broadband, wireline and wireless pricing comparison in urban communities, per province/territory, 2016 Three-series horizontal bar chart of Figure 2.0.5: Broadband, wireline and wireless pricing comparison in urban communities, per province/territory, 2016
Text Description of Image

This three-series horizontal bar chart shows the highest and lowest monthly prices in dollars for broadband, wireline and wireless services in urban areas on a per province basis, as well as number of providers in each centre.

Province, service Providers Minimum Variance Maximum
BC wireless 4 38 26 64
BC wireline 2 31 9 40
BC broadband 7 25 55 80
Alberta wireless 4 38 26 64
Alberta wireline 2 31 5 36
Alberta broadband 7 25 55 80
Sask wireless 4 48 23 71
Sask wireline 2 22 9 31
Sask broadband 3/4 25 48 73
Manitoba wireless 4 48 12 60
Manitoba wireline 2 31 0 31
Manitoba broadband 5 25 48 73
Ontario wireless 5 38 26 64
Ontario wireline 2/3 28 10 38
Ontario broadband 10/12 25 45 70
Québec wireless 4 40 25 65
Quebec wireline 2/3 23 8 31
Quebec broadband 9/10 27 28 55
NB wireless 3 55 10 65
NB wireline 2 29 2 31
NB broadband 2 33 56 89
PEI wireless 4 55 11 66
PEI wireline 2 31 1 32
PEI broadband 2 86 3 89
NS wireless 4 55 11 66
NS wireline 2 31 1 32
NS broadband 2 86 3 89
Nfld wireless 3 55 9 64
Nfld wireline 2 29 2 31
Nfld broadband 2 33 56 89
Yukon wireless 2 64 21 85
Yukon wireline 2 32 8 40
Yukon broadband 1 63 0 63
NWT wireless 2 64 21 85
NWT wireline 2 32 8 40
NWT broadband 1 63 0 63
Nunavut wireless 2 64 21 85
Nunavut wireline 2 33 7 40
Nunavut broadband 1 70 0 70

Source: CRTC data collection

Broadband in urban communities

The highest price reported across all provinces/territories is $88.95 per month for broadband services. In most provinces, the lowest reported price for broadband services is $25.00, as seen in Figure 2.0.5. The widest range ($55.96) is seen in Newfoundland and Labrador and in New Brunswick, where broadband service prices range from $32.99 to $88.95 per month.

Basic local wireline in urban communities

There is little variance in basic local wireline service prices in urban communities. The average maximum price for these services in urban communities is $34.73 per month. The highest price is $39.95 per month in British Columbia, Yukon, the Northwest Territories, and Nunavut, and the lowest price is $22.37 per month in Saskatchewan. The highest variance is in Ontario ($10.00), which demonstrates that most basic local wireline service users in urban communities across the country pay approximately the same amount each month and are not subject to widely varying prices.

Wireless in urban communities

The average maximum wireless service price in urban communities is $69.48 per month. British Columbia, Alberta, and Ontario all have the lowest price of $37.70 per month. Wireless service prices in urban communities in the North reach a reported price of $85.00 per month, the highest reported price in Canada, which is the same for wireless service prices in rural communities (see Figure 2.0.4).

Overall, pricing patterns in rural communities are similar to those in urban communities throughout most provinces/territories. However, the variance in prices is much higher in urban communities due to lower minimum prices.

Primary brands vs. flanker brandsFootnote 5

An examination of the different prices offered under primary brands and flanker brands gives perspective on how prices vary depending on the brand and region. In this subsection, primary and flanker brand prices are broken down nationally and by province/territory. The analysis is further divided into service baskets to view the magnitude of price differences between service levels.

Primary brand:

This is the brand that is most recognizable by consumers and is directly associated to the parent company that owns and operates the facilities to provide services.

Flanker brand:

This brand, also referred to as an extension or a secondary brand, is expressed as logos or words, and is used by the primary brand wireless service provider (WSP) to market and offer varying services and plans to consumers. The primary brand’s network is used to provide services under the flanker brand. Virgin, Koodo, and Fido are examples of flanker brands.

The division of service levels into baskets is based on consumer use. The baskets help differentiate between available phone and data plans. To analyze what prices service providers have to offer, both flanker and primary brands were considered. Prices were assessed for all provinces/territories and baskets. To assess the pricing of mobile wireless services, the following four baskets were used:

Figure 2.0.6 Price differences between primary and flanker brand phone plans, Canada, February 2017

Bar chart of Figure 2.0.6: Price difference between primary and flanker brand phone plans, Canada, 2017 Bar chart of Figure 2.0.6: Price difference between primary and flanker brand phone plans, Canada, 2017
Text Description of Image

This bar chart shows the average, highest, lowest, and price variation of phone plan prices of primary and flankers brands, by wireless price basket levels.

Type Basket 1 (150 mins/no data) Basket 2 (450 mins/1GB) Basket 3 (1200 mins/2GB) Basket 4 (∞ min/5GB)
Flanker brand average price 30.39 46.10 54.98 78.55
Primary brand average price 33.85 67.05 77.82 95.64
Lowest price 28.00 40.00 46.67 53.50
Variation between the highest and lowest price 8.67 35.00 41.67 54.83
Highest price 36.67 75.00 88.33 108.33

Source: Service plan pricing as published on service providers’ websites in February 2017

Figure 2.0.6 presents average primary and flanker brand prices, as well as the variation in pricing for each basket across service providers. Data shows that variation in pricing is accentuated in the baskets that comprise more minutes, SMS, and data. As such, basket 1 has the lowest price variation, which indicates that the pricing of services in this basket tends to be consistent across service providers.

Overall, the average advertised price of the studied service baskets is 23% lower under flanker brands compared to primary brands. As demonstrated in Figure 2.0.6, flanker brand average prices lay clearly below primary brand average prices for each basket.

The average incremental cost between basket 2 and 3 wireless services is $11 under primary brands and $9 under flanker brands, while the average incremental cost between basket 3 and 4 wireless services is $18 under primary brands and $24 under flanker brands.

The following two figures show the pricing of the 4 baskets of wireless services studied, by province and territory.

Figure 2.0.7 Primary vs. flanker brand wireless pricing, baskets 1 and 2, by province and territory, February 2017

Radar chart of Figure 2.0.7: Primary vs. flanker pricing basket level 1 and 2, by province and territory, 2017 Radar chart of Figure 2.0.7: Primary vs. flanker pricing basket level 1 and 2, by province and territory, 2017
Text Description of Image

This radar chart shows the average prices that primary and flanker brands offer to each province and territory for wireless price basket levels 1 and 2.

Type Primary brand average – Basket 1 Primary brand average – Basket 2 Flanker brand average – Basket 1 Flanker brand average – Basket 2
Newfoundland and Labrador 33.33 70.00 30.00 49.25
Nova Scotia 33.33 70.00 30.00 49.25
Prince Edward Island 33.33 70.00 30.00 49.25
New Brunswick 33.33 70.00 30.00 49.25
Québec 36.67 75.00 29.00 40.40
Ontario 36.67 75.00 30.40 47.40
Manitoba 30.00 40.00 31.00 40.67
Saskatchewan 28.33 40.00 30.00 40.67
Alberta 35.00 75.00 28.00 46.40
British-Columbia 35.00 71.67 28.00 47.40
Nunavut 35.00 71.67 33.50 46.00
Northwest Territories 35.00 71.67 33.50 46.00
Yukon 35.00 71.67 31.67 47.33

Source: Service plan pricing as published on service providers’ websites in February 2017

This chart depicts the pricing of primary brands and their flanker brands for baskets 1 and 2, by province/territory. As observed in the national figures, pricing for basket 1 is somewhat consistent across service providers. However, a gap between the primary brand average price and the flanker brand average price for basket 2 can be observed in most provinces, except Manitoba and Saskatchewan. The average price differences between primary brands and flanker brands are $3.46 and $20.95 for baskets 1 and 2 respectively.

Overall, basket 2 prices offered by primary brands are lowest in Saskatchewan ($40.00) and Manitoba ($40.00). Also in Saskatchewan and Manitoba, the average advertised price of basket 2 was higher under flanker brands than under primary brands.

Figure 2.0.8 Primary vs. flanker brand wireless pricing, baskets 3 and 4, by province and territory, February 2017

Radar chart of Figure 2.0.8: Primary vs. flanker pricing basket level 3 and 4, by province and territory, 2017 Radar chart of Figure 2.0.8: Primary vs. flanker pricing basket level 3 and 4, by province and territory, 2017
Text Description of Image

This radar chart shows the average prices that primary and flanker brands offer to each province and territory for wireless price basket levels 3 and 4.

Type Primary brand average – Basket 3 Primary brand average – Basket 4 Flanker brand average – Basket 3 Flanker brand average – Basket 4
Newfoundland and Labrador 83.33 105.00 58.75 88.75
Nova Scotia 83.33 105.00 58.75 88.75
Prince Edward Island 83.33 105.00 58.75 88.75
New Brunswick 83.33 105.00 58.75 88.75
Québec 66.67 78.33 48.25 55.50
Ontario 85.00 98.33 57.00 75.00
Manitoba 46.67 56.67 48.33 54.80
Saskatchewan 51.67 61.67 47.50 53.50
Alberta 88.33 108.33 55.00 78.00
British-Columbia 85.00 105.00 57.00 81.00
Nunavut 85.00 105.00 55.00 87.50
Northwest Territories 85.00 105.00 55.00 87.50
Yukon 85.00 105.00 56.67 93.33

Source: Service plan pricing as published on service providers’ websites in February 2017

This chart depicts the pricing of primary brands and their flanker brands for baskets 3 and 4, by province/territory. There is a notable difference in pricing (i.e. prices are consistently lower than the national average) in Quebec, Manitoba, and Saskatchewan, where regional service providers are present, for baskets 3 and 4. In the other provinces and in the territories, the prices seem to follow a consistent trend. Overall, the flanker brand average prices for basket 4 are only slightly higher than the primary brand prices for basket 3.

The area with the highest average price for basket 4 offered by primary brands is Alberta ($108.33), while the area with the highest average price for basket 4 offered by flanker brands is Yukon ($93.33).

iii) Access and service availability

One of the CRTC’s key goals is to ensure that Canadians have access to a world-class communication system. Achieving this objective requires quality information about the diverse challenges faced by communities across the country. To better understand how the communication system is evolving to help Canadians connect with one another and the world, the rest of this section focuses on the availability of communications services in Canada, with particular regard to official language minority communities and access to communications services in minority official languages.

Wireless and wireline telephone services

Another approach to the issue of availability is to consider the extent to which Canadian households subscribe to key communications services. As Table 2.0.5 shows, nearly all Canadians (99.3%) subscribed to either mobile wireless or landline telephone services in 2015. However, rather than subscribing to both telephone services (i.e. landline and mobile wireless services), some Canadians are choosing only one service – and for the most part, this appears to be mobile wireless service. As noted in Table 2.0.5, the percentage of mobile-wireless- only households (27.5%) continues to exceed the percentage of wireline-only households (13.2%). Over the last decade, the percentage of wireline -only households has continuously decreased, while the percentage of mobile-wireless -only households has steadily increased.

While the transition to widespread mobile wireless service use – partly at the expense of wireline telephone service use – is a long-term process, the historical data in Table 2.0.5 shows how rapidly Canadian households have embraced this newer technology. In 2005, wireline-only households (36.0%) far outpaced their mobile-wireless -only counterparts (4.8%).

By organizing this information by province (see Table 2.0.6) and income quintile (see Table 2.0.7), it is more apparent which groups of Canadians are driving the year-over-year shift in service subscriptions. For instance, consumers in the four Western provinces (Manitoba, Saskatchewan, Alberta, and British Columbia) and Ontario have played a key role in the rise of mobile-wireless-only households. In contrast, both Quebec and the Eastern provinces (New Brunswick, Nova Scotia, Prince Edward Island, and Newfoundland and Labrador) continue to feature a larger percentage of wireline-only households. Nevertheless, all provinces had decreasing percentages of wireline-only households in 2015, except Manitoba, Quebec, and Nova Scotia, whose percentages of wireline-service-only households increased (see Table 2.0.6). However, this had no effect on the provinces’ percentages of mobile-wireless-only households. In fact, mobile-wireless-only households in all provinces increased.

Figure 2.0.9 shows the ownership rates of cellphones and landlines by Canadians. In 2015, 99.3% of Canadian households owned either a cellphone or a landline. While 86.2% of households had cellphones in 2015, from 2012 to 2015, the percentage of households owning more than one cellphone increased from 45.9% to 51.2%. During the same period, landline ownership decreased gradually from 83.8% in 2012 to 71.9% in 2015, as seen in Figure 2.0.9. Overall, cellphone ownership rates rose from 85.6% in 2014 to 86.2% in 2015, compared to 71.9% of Canadians who had a landline in 2015, down from 75.5% in 2014.

Figure 2.0.9 Cellphone and landline ownership rates

Bar chart of Figure 2.0.9: Cellphone and landline ownership rates Bar chart of Figure 2.0.9: Cellphone and landline ownership rates
Text Description of Image

This bar chart shows telephone ownership rates by percentage of households, number of phones and types of service from 2012 to 2015.

Type 2012 2013 2014 2015
1 Cellphone 35.4 37.1 36.0 35.0
2 Cellphones 29.0 29.8 32.3 33.7
3 Cellphones 16.9 17.8 17.3 17.5
Landline 83.8 79.1 75.5 71.9

Source: Statistics Canada’s Survey of Household Spending

The figure above provides the percentages of Canadian households by cellphone and landline ownership between 2012 and 2015, using the most recent data available through Statistics Canada’s Survey of Household Spending.

The link between income and telephone service subscriptions

The data on telephone ownership rates by income quintile (see Table 2.0.7) continue to illustrate the overall transition to mobile phones. Household telephone service subscribers tend follow the same trend every year across most income quintiles, in which the uptake of wireline services decreases in favour of mobile wireless services. However, the number of wireline-only households in the second income quintile increased from 16.2% in 2014 to 18.7% in 2015.

In 2015, of the five income quintiles, households in the fifth quintile changed their telephony habits the most. Their exclusive use of cellphones increased 63.5%, while wireline-only households in this income quintile decreased by 35.4%.

Financial resources appear to play a role in whether households subscribe to both wireless and wireline services, or only one of the two. While only 21.9% of households in the highest income quintile subscribed to only wireline or only wireless services in 2015, there is a significant difference in the percentages of households in lower income quintiles that subscribed to only wireline or only wireless services (63.7% in the first income quintile). Indeed, the data suggest that the higher a household’s income, the more likely it is that the household subscribes to both types of telephone services.

Table 2.0.5 Canadian wireline and mobile wireless service subscribers per 100 households
Year Wireline Mobile wireless Wireline and/or mobile wireless Wireline only Mobile wireless only Only wireline or only wireless
2004 96.2 58.9 98.9 40.0 2.7 42.7
2005 94.0 62.9 98.8 36.0 4.8 40.8
2006 93.6 66.8 98.6 31.8 5.0 36.8
2007 92.5 71.9 98.8 26.9 6.3 33.2
2008 91.1 74.3 99.1 24.8 8.0 32.8
2009 89.3 77.2 99.3 22.1 10.0 32.1
2010 89.3 78.1 99.4 21.3 10.1 31.4
2011 86.6 79.1 99.3 20.2 12.7 32.9
2012 83.8 81.3 99.2 17.9 15.4 33.3
2013 79.1 84.7 99.3 14.6 20.2 34.8
2014 75.5 85.6 99.2 13.6 23.7 37.3
2015 71.9 86.1 99.3 13.2 27.5 40.7

Source: Statistics Canada’s Survey of Household Spending

Table 2.0.6 Wireline and mobile wireless service subscribers per 100 households, by province, 2015
Province Wireline Mobile wireless Wireline and/or mobile wireless Wireline only Mobile wireless only Only wireline or wireless
British Columbia 70.7 88.5 98.9 10.4 28.2 38.6
Alberta 65.2 93.4 99.8 6.4 34.7 41.1
Saskatchewan 68.7 91.1 99.4 8.4 30.8 39.1
Manitoba 76.1 85.1 99.0 13.9 22.9 36.8
Ontario 69.1 88.1 99.5 11.4 30.4 41.8
Quebec 77.0 79.0 99.2 20.2 22.2 42.4
New Brunswick 84.1 82.8 98.5 15.7 14.4 30.1
Nova Scotia 75.0 83.2 99.2 16.0 24.2 40.2
Prince Edward Island 77.3 83.8 98.8 15.0 21.5 36.5
Newfoundland and Labrador 83.6 86.4 99.1 12.7 15.5 28.3
All of Canada 71.9 86.1 99.3 13.2 27.5 40.7

Source: Statistics Canada’s Survey of Household Spending

Table 2.0.7 Canadian wireline and mobile wireless service subscribers per 100 households, by income quintile
Service Year First quintile Second quintile Third quintile Fourth quintile Fifth quintile

Wireline

2013 65.2 75.0 82.2 84.7 87.5
2014 65.3 69.1 74.3 80.2 88.3

2015

63.6

68.6

72.1

74.1

81.0

Growth 2014-2015 (%) -2.6 -0.7 -3.0 -7.6 -8.3

Mobile wireless

2013 66.8 79.7 88.5 92.9 96.4
2014 67.4 83.2 89.4 93.2 95.0

2015

69.9

80.3

89.9

93.9

96.7

Growth 2014-2015 (%) 3.7 -3.5 0.6 0.8 1.8

Wireline and/or mobile wireless

2013 97.5 99.7 99.7 99.6 100.0
2014 97.8 99.4 99.2 99.5 99.8

2015

98.6

99.0

99.5

99.8

99.8

Growth 2014-2015 (%) 0.8 -0.4 0.3 0.3 0.0

Wireline only

2013 30.7 20.0 11.2 6.7 3.6
2014 30.4 16.2 9.8 6.3 4.8

2015

28.7

18.7

9.6

5.9

3.1

Growth 2014-2015 (%) -5.6 15.4 -2.0 -6.3 -35.4

Mobile wireless only

2013 32.3 24.7 17.5 14.9 12.5
2014 32.5 30.3 24.9 19.3 11.5

2015

35.0

30.4

27.4

25.7

18.8

Growth 2014-2015 (%) 7.7 0.3 10.0 33.2 63.5

Source: Statistics Canada’s Survey of Household Spending

The results of Statistics Canada’s Survey of Household Spending are released approximately two years after the data is collected. Consequently, the most recently available data is from 2015.

The link between income and Internet subscriptions

Mobile wireless devices (such as smartphones and tablets) and technologies (HSPA and LTEFootnote 6) enable Canadians to access the Internet from nearly any location. However, home computers still play an important role for Canadians. As Table 2.0.8 shows, most Canadian households have home computers (84.5%).

Overall, slightly more households owned cellphones (86.1%) than home computers (84.5%) in 2015. This trend is more pronounced in the lower income quintiles. For example, 69.9% of Canadian households in the lowest income quintile owned cellphones (see Table 2.0.7), compared to 61.9% of households that owned home computers. Overall, the average of home computer ownership for all income quintiles has had fairly flat growth, increasing only 0.2% between 2014 and 2015.

The only decreases in home computer ownership in the household are seen in the fifth income quintile and in the first quintile, by 0.8% and 3.7%, respectively. While this may be due to a number of factors, one important factor could be that low-income households are choosing to devote their resources to a technology that can provide multiple communications services (e.g. voice and Internet), rather than subscribing to each service individually.

Internet use from home has increased throughout all income quintiles except the fifth quintile, which saw a decrease of 0.1%. The majority of growth came from households in the second and third income quintiles, which reported increases of 4.6% each in Internet use from home. Overall, Internet use from home has increased 2.4%. However, Internet use from home in the first income quintile is still 17.7 percentage points lower than that in the second quintile, and 22.5 percentage points lower than the overall average.

Table 2.0.8 Home computer ownership and Internet use from home per 100 households, by income quintile
Technology Year First quintile Second quintile Third quintile Fourth quintile Fifth quintile Average for all quintiles

Home computer ownership

2014 64.3 78.1 87.7 94.0 97.4 84.3
2015 61.9 79.6 89.1 95.3 96.6 84.5
Growth (%) -3.7 1.9 1.6 1.4 -0.8 0.2

Internet use from home

2014 63.5 78.5 88.7 95.5 98.3 84.9
2015 64.4 82.1 92.8 97.2 98.2 86.9
Growth (%) 1.4 4.6 4.6 1.8 -0.1 2.4

Source: Statistics Canada

Figure 2.0.10 Residential broadband service availability (5 Mbps or higher download speed), by province/territory (% of households), 2016

Bar chart of Figure 2.0.10: Residential broadband service availability (5 Mbps or higher download speed), by province/territory (% of households), 2016 Bar chart of Figure 2.0.10: Residential broadband service availability (5 Mbps or higher download speed), by province/territory (% of households), 2016
Text Description of Image

This bar chart shows residential broadband availability (5 Mbps or higher download speed), by province for 2016.

Province 2016
B.C. 97
Alta. 99
Sask. 90
Man. 95
Ont. 98
Que. 98
N.B. 96
N.S. 89
P.E.I. 83
N.L. 87
North 80
Canada 97

Source: Innovation, Science and Economic Development Canada (ISED) and CRTC data collection

DTH satellite services are excluded since they have a national footprint. They would add approximately 1.5% to the availability of 5 Mbps broadband services.

The rise in Internet service use across income quintiles is also reflected in overall residential Internet service availability and subscriptions. The percentage of households with access to broadband services with a download speed of at least 5 Mbps is 97% nationally.

The data indicates that Canadians are clearly embracing faster connections, which are becoming more widely available: the majority of households now subscribe to Internet service packages with download speeds at or above 10 Mbps.

Table 2.0.9 Residential Internet service subscriptions by advertised download speed per 100 households
Advertised download speed 2012 2013 2014 2015 2016
256 Kbps and higher 78 79 81 83 84
1.5 Mbps and higher 75 77 80 82 83
5 Mbps and higher 62 71 77 80 81
10 Mbps and higher 29 45 55 61 65
16 Mbps and higher 21 25 34 41 46
50 Mbps and higher 3 4 8 16 22
All speeds (including dial-up) 79 80 82 84 84

Source: CRTC data collection

iv) Internet data consumption

While 86.9% of Canadian households use the Internet at home, their Internet use and data consumption varies greatly. To better understand the impacts of using different online services, 3 different data usage scenarios were created and data usage was analyzed. Table 2.0.10 presents the activities included in each usage profile, while Figures 2.0.11, 2.0.12, and 2.0.13 present overall data consumption and a breakdown by service.Footnote 7

Low-volume usage

This scenario covers individuals who regularly participate in low-usage activities, such as Web browsing, and social media, as well as occasional video streaming.

Figure 2.0.11 Low Internet GB consumption, per service, per month

Circular graph of Figure 2.0.11: GB used per service, low usage Circular graph of Figure 2.0.11: GB used per service, low usage
Text Description of Image

This circular graph shows the number of gigabytes used per service for low usage.

Province Usage (GB)
Websites, emails and IM 5.83
Uploading photos 0.06
Streaming audio 3.00
Downloading music 0.04
Streaming SD video 2.70
Streaming SD movies 12.00
Streaming HD movies 26.54
Total 50

Source: CRTC research and tests

IM: instant messaging

HD: high definition

SD: standard definition

Medium-volume usage

This scenario covers individuals who participate in low-usage activities, such as Web browsing and social media on a daily basis, as well as medium-usage activities, such as audio and video streaming on a regular basis.

Figure 2.0.12 Medium Internet GB consumption, per service, per month

Circular graph of Figure 2.0.12: GB used per service, medium usage Circular graph of Figure 2.0.12: GB used per service, medium usage
Text Description of Image

This circular graph shows the number of gigabytes used per service for medium usage.

Province Usage (GB)
Websites, emails and IM 8.75
Uploading photos 0.12
Streaming audio 5.50
Gaming 2.50
Downloading music 0.09
Streaming SD video 7.20
Streaming SD movies 22.50
Streaming HD movies 53.09
Total 100

Source: CRTC research and tests

High-volume usage

This scenario covers families with children who participate in low- and medium-usage activities on a daily basis, as well as high-usage activities, such as video streaming on a regular basis.

Figure 2.0.13 High Internet GB consumption, per service, per month

Circular graph of Figure 2.0.13: GB used per service, high usage Circular graph of Figure 2.0.13: GB used per service, high usage
Text Description of Image

This circular graph shows the number of gigabytes used per service for high usage.

Province Usage (GB)
Websites, emails and IM 13.12
Uploading photos 0.18
Streaming audio 6.50
Gaming 4.00
Downloading music 0.09
Streaming SD video 9.00
Streaming SD movies 36.00
Streaming HD movies 73.00
Total 175

Source: CRTC research and tests

Table 2.0.10 Internet data consumption, per service
Service Measure Low usage Medium usage High usage Data usage (MB) per unit
Websites, emails, and IM Hours 40 60 90 146
Uploading photos Photos 20 40 60 3
Streaming audio Hours 30 55 65 100
Gaming Hours - 50 80 997
Downloading music Songs 10 20 22 4
Streaming SD video Hours 3 8 10 900
Streaming SD movies Movies 8 15 24 1,500
Streaming HD movies Movies 8 16 22 3,318

Source: CRTC research and tests

Estimates of data usage per type of online activity are based on information published on service providers’ websites and data from the CRTC test environment. Actual data usage may vary

For more details regarding data consumption, see “Broadband measurement” in section 5.3.

As shown in the figures and table above, streaming HD content accounts for the largest portion of data usage in all three scenarios, followed by streaming SD content and gaming.

v) 2017 CMR Rotating Spotlight: The Wireless Code

The rotating spotlight is a new annual feature in the CMR to highlight changes in the Canadian communications industry during the year. It presents information that impacts consumers directly. This year’s spotlight is on the Wireless Code.

The Wireless Code – The beginning

The first version of the Wireless Code came into effect in December 2013. The Code was created to respond to significant concerns about wireless services and to establish more consumer-friendly business practices. The Code addresses the clarity and content of wireless service contracts to assist consumers, including small businesses, in making informed choices in the marketplace. The Code also endeavours to limit the risk of bill shock to customers and to facilitate switching service providers, thus contributing to a more dynamic marketplace.

The Code applies to all WSPs that serve customers of retail mobile wireless services, irrespective of their business model or where they operate. The Code is administered by the Commissioner for Complaints for Telecommunication Services (CCTS).

The Wireless Code – Implications for consumers

Each rule in the Wireless Code was designed to address a specific consumer concern, such as the following:

As a result of the Review of the Wireless Code, Telecom Regulatory Policy CRTC 2017-200, 15 June 2017, which amended the original Wireless Code, WSPs are required to do the following:

The Wireless Code – Public opinion research highlights (Fall 2016)

As part of the process to update the Code, the CRTC sought to understand the impact of the Code over time on consumers’ understanding of their wireless service contracts and related rights. Public opinion research (POR) was conducted in the spring of each year since 2014.

Highlights of the Fall 2016 POR as they pertain to bill shock and complaints, are as follows:

Bill shock

Complaints

Figure 2.0.14 Percentage of Canadians experiencing bill shock and filing complaints

Bar graph of Figure 2.0.14: Percentage of Canadian experiencing bill shock and filing complaints. Bar graph of Figure 2.0.14: Percentage of Canadian experiencing bill shock and filing complaints.
Text Description of Image

This bar graph shows the percentage of Canadians that experienced bill shock and filed complaints for spring 2014, 2015, 2016, and fall 2016.

Year Bill shock Complaints
Spring 2014 29 23
Spring 2015 28 26
Spring 2016 24 21
Fall 2016 21 17

Source: CRTC Public Opinion Research, Spring 2014 to Fall 2016

Wireless-service-related contacts, complaints, and spam

The increase in wireless device usage presents unique challenges for Canadians. Between 1 April 2016 and 31 March 2017, 41% of Web form submissions to the CRTC’s Spam Reporting Centre concerned spam sent through mobile text messages. This represents an increase from the 2015-2016 fiscal year, when SMS-based spam represented 18% of Web-based submissions. In 2015-2016, the CRTC and the CCTS combined received approximately 12,000 wireless-service-related complaints and contacts.

CCTS

CRTC

Metrics – Contract length

As illustrated in the figure below, the percentage of postpaid plans with contract periods exceeding two years dropped following the 2013 implementation of the Wireless Code.

Figure 2.0.15 Percentage of wireless service plans with contracts, by duration

Bar graph of Figure 2.0.15: Percentage of wireless plans with contracts, by duration Bar graph of Figure 2.0.15: Percentage of wireless plans with contracts, by duration
Text Description of Image

This bar graph shows the percentage of wireless plans with contracts, by duration; no contract, 1 to 2 years, and greater than 2 years, for the years 2013 to 2016.

Length 2013 2014 2015 2016
No contract 24.0 28.5 36.2 46.2
1 to 2 years 19.5 38.1 50.1 44.7
Greater than 2 years 56.4 33.4 13.7 9.1

Source: CRTC data collection

Metrics – Early cancellation fee revenues

Early cancellation fee revenues (for the five entities that submitted data as part of the Wireless Code review proceeding) in 2013 and 2014 were relatively flat, at approximately $130 million, rising to approximately $140 million in 2015.

Three of the five companies posted a decrease in early cancellation fee revenues in 2014, with three of the five also posting a decrease in such revenues in 2015.

Unlocking fees

Since the creation of the Wireless Code, the CRTC has received over 650 complaints/inquiries about unlocking fees.

Unlocking fees were one of the most frequently cited frustrations of consumers on the record of the Wireless Code review proceeding: 46 Canadians commented on unlocking fees, with many subscribers suggesting that once a mobile device has been fully paid for, WSPs should unlock the device free of charge.

Table 2.0.11 Aggregate data released on the number of devices unlocked and revenues from unlocking
Metric 2014 2015 2016
Number of devices unlocked by WSPs 734,595 922,931 943,363
Revenues from unlocking ($M) 21.6 28.5 37.7

Source: Undertakings submitted as part of the wireless code review proceeding

2.1 Local spotlight: Access for official language minority communities

As a designated institution under section 41 of the Official Languages Act, the CRTC is committed to enhancing the vitality of the English- and French-language minority communities in Canada, supporting their development and addressing their needs within the context of its mandate, and fostering the full recognition and use of both official languages in Canadian society. To this end, the CRTC focuses on ensuring that official language minority communities have access to an appropriate and equitable number of quality services and that these communities are adequately represented in the programming of these services.

These objectives reflect the Canadian broadcasting policy objectives, which the Commission is tasked to pursue. In this regard, the Broadcasting Act specifies that the Canadian broadcasting system should demonstrate Canada’s linguistic duality through programming and employment opportunities; that a range of broadcasting services in English and French shall be extended to all Canadians as resources become available; and that the programming provided by the Canadian Broadcasting Corporation be in English and in French, and reflect the different needs and circumstances of English and French linguistic minorities.

Table 2.1.1 Official language minority population as a percentage of the total population, by province and territory, 2016
Province/territory Official language minority population (% of total population)
British Columbia 1.3
Alberta 1.9
Saskatchewan 1.4
Manitoba 3.3
Ontario 3.8
Quebec 7.8
New Brunswick 31.4
Nova Scotia 3.3
Prince Edward Island 3.5
Newfoundland and Labrador 0.5
Territories 3.0
Canada 4.6

Source: 2011 Census, Statistics Canada

A number of different criteria can be used to identify the language of individuals. These include the first language learned at home, the language spoken at home, and the language of education.

For the purpose of this report, the official language minority population is defined in terms of the first language learned at home in childhood (i.e. the mother tongue) and still understood at the time of the 2016 Census.

This table displays the percentage of the population for whom the mother tongue is an official language in minority status in the province or territory in which they reside, and in Canada as a whole. In all provinces and territories except Quebec, the official language having minority status is French. New Brunswick has the highest percentage of official language minority population, at 31.4%, followed by Quebec at 7.8%. This data excludes institutional residents.

Map 2.1.1 Locations of official language minority communities in Canada

Map 2.1.1: Locations of official language minority communities in CanadaMap 2.1.1: Locations of official language minority communities in Canada
Text Description of Image

This map displays the locations of communities that contain a school servicing official-language minority communities.

Source: Canadian Heritage, Official Languages Branch

Table 2.1.2 Percentage of official language minority community households having access to communications services in their official language, by type of service, for the provinces/territories and all of Canada, 2013
Province/territory Radio Over-the-air television Cable distribution (excluding DTH satellite) Broadband Internet Mobile wireless broadband
British Columbia 71 49 94 96 98
Alberta 77 33 90 99 99
Saskatchewan 55 17 74 99 99
Manitoba 78 62 75 99 99
Ontario 71 34 88 97 99
Quebec 83 87 93 96 99
New Brunswick 94 46 93 99 99
Nova Scotia 75 1 76 99 99
Prince Edward Island 64 0 60 86 99
Newfoundland and Labrador 56 0 82 85 95
Territories 51 0 75 97 84
Canada 72 62 91 97 99

Source: 2011 Census, Statistics Canada, and CRTC data collection

This table displays the percentages of the official language minority community households in each province and in the territories that have access to radio services, television services, cable distribution services (excluding DTH satellite services since these services are generally available to all households), broadband Internet services, and mobile wireless broadband services, from which they can be served in their first official language.

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