Mobile Technology – Choice for Communications Among Canadians
Wherever you go in Canada, everyone is on a mobile phone. It’s not a secret; Canadians are enamored with their cell phones. Even my 76-year-old grandmother in Waskada, Manitoba has a mobile phone, a Smartphone for that matter.
On October 22nd, the Canadian Radio-television and Telecommunications Commission (CRTC) released a section of the 2015 Communications Monitoring Report. It contains interesting but expected trends regarding the evolution of Canadian communication services-more and more people are going mobile. The revenue generated by the Canadian communications industry increased by 2.1% to $63.2 billion.
OpenMedia also did a related study that showed how the price of a 1 GB monthly plan is over the roof. The cost rose by a massive 7% (inflation rate was only at 2.3%). Do you sometimes wonder why the big four providers are ever expensive? Interestingly, Canadians’ attachment to the mobile is not about to dwindle.
Let’s see how the dynamics are playing out.
Changing Consumer Behavior
The last five years has seen subscriptions to mobile wireless services skyrocket. Today, the subscriptions stand at 20% – this is the first time wireless has surpassed landline in terms subscriptions (14%).
The Smartphone craze has contributed a lot to this change of dynamics. Smartphone penetration in the country is higher in 2015 (68%) than it was in 2014 (55%).
There’s an even more exciting observation-more Canadians are using the Smartphone at home for news, entertainment, communication and so on.
What Could Be Happening?
Experts are attributing this shift in positions to a higher number of Canadians using mobile phones as opposed to landlines. This is part of the general trend of Canadians are turning to mobile devices. Reason? Mobile devices give consumers easy access to better and more affordable internet packages.
In 2014, Canadians increased their spending on internet and wireless services by 10% and 14% respectively (my budget for internet more than doubled this year, my teen daughter eventually got a Smartphone). On average, the money a Canadian spends on communication services increased by 6.2% over the same period.
According to the CRTC report, more Canadians have access to download speeds of 5MB compared to five years ago. Subscriptions to these services have increased from 86 percent to 96 percent. It appears that telecom companies in Canada can sit pretty and continue laughing all the way to the bank.
It’s Party Time
TELUS, Rogers and the other cell phone providers are reaping the benefits; as of 2014, the Canadian communications industry was raking in $63.2 billion in revenues. This was a massive increase from the $61.9 generated the previous year. Going by various indicators, the figures are likely to be even higher in 2015.
Jean-Pierre Blais, Chairman of the CRTC wraps up the report on mobile usage in Canada very concretely: “Canadians are increasingly adopting mobile technologies for their communication needs…We invite Canadians, whether consumers of communication products and services, creators and distributors of content or members of the public, to make use of the information…”
Are you interested in getting a good mobile phone plan and joining the rest of Canada? We can help you get the cheapest and most suitable plans for you and family when you compare wireless cell phone plans at CompareMyRates.ca.