When it comes to her mobile phone plan, Rita Barnes has been with big and small carriers across the spectrum of Canada's telecommunications sector. A person uses a cellphone in Ottawa on Monday, July 18, 2022. THE CANADIAN PRESS/Sean Kilpatrick
When it comes to her mobile phone plan, Rita Barnes has been with big and small carriers across the spectrum of Canada’s telecommunications sector.
She knows how well – or not – each of them fit her cost, data and customer service preferences.
Now, with her university-age son considering a move to Guelph or Waterloo, Ont., the Toronto woman finds herself on the hunt for a plan that matches his needs. She said her family’s top priority is ensuring he has reliable service with whichever provider he ends up with.
“With the phone plans, some of them are cheap – $29, $30 (a month),” she said.
“But if you don’t get the coverage, the reception that you need, then I don’t think it’s worth paying a cheap price for the plan.”
Choosing a new cellphone plan can be difficult for Canadians struggling to decide between plans offered by the major carriers, their discount brands and other independent companies on the market.
Figuring out what perks you need and ensuring you don’t overpay for services that will go to waste is the first step to solving that dilemma, said Mohammed Halabi, director and founder of MyBillsAreHigh.com, a company that helps customers negotiate with providers and save money on telecom expenses.
Halabi said a smaller provider could be a good fit for somebody prioritizing the lowest cost available and who doesn’t need too many bells and whistles.
“Whether it’s your cellphone plan or internet plan, do you really need the highest speed or do you really need 50 gigabytes of data?” he said.
“It does work very well for some people who don’t need, let’s say, 5G and they understand how they use their device.”
Halabi said he often gives customers certain tips that apply no matter their situation in order to save a few bucks on their monthly bill. First, he said the best time to shop for cheap plans is in the final two months of the year, when companies roll out promotions in time for the holiday season.
Providers also typically offer a lot more incentives to new customers than existing ones. That means shopping around or seeing if your current carrier will match a competitors’ offer can be beneficial.
There are also savings to be had for those who bundle their cellphone service with television and internet offerings, said David Soberman, a marketing professor at the University of Toronto’s Rotman School of Management.
That’s much easier to do when you’re with a major telecom company, he said.
Soberman added customers of the big carriers also typically spend less on calling and texting when they travel thanks to more flexible roaming plans.
“If you happen to not be travelling very much and you already have internet where you live, then one of the flanker brands or one of the smaller brands can be very appealing because often their plans are significantly less,” he said.
Barnes said there are more important factors to choosing a carrier than bundling or finding deals. Currently with Telus, Barnes said she takes advantage of a 5G data plan that she needs for frequent travel after previously being with Rogers.
Having also been a customer of Rogers subsidiary Fido and Bell’s Virgin Mobile – two of the discount brands owned by major carriers that are often referred to as flankers – she said she is open to going with a provider outside of the Big 3.
She has been exploring Freedom Mobile, which was purchased last year by Quebecor’s Videotron, for her son. As a condition of Freedom’s sale, the federal government stipulated that the carrier offer plans at least 20 per cent below its competitors over a 10-year period. But despite attractive pricing offers, Barnes said her family has concerns about calls dropping.
“I do have somebody in my household that is already on Freedom, but the coverage is not that great,” she said.
“We’ve been in the basement sometimes (and) I’ll have reception; he won’t.”
Another option she looked into was Telus-owned Public Mobile, but got scared off by the company’s solely online customer service process.
“You can pay for a cheaper plan, but if there’s non-existent customer service and you can’t reach them when you have a problem, why are you paying the cheaper price? You’re not really getting that much,” she said.
“I don’t mind paying a little bit more but getting customer service when you need to get ahold of them.”
Soberman said, overall, prices remain “too high” for telecommunications services in Canada, underscoring why it’s important for customers to shop around and make sure they find the right deal for their circumstances.
The Canadian Telecommunications Association said prices for cellular services have declined by more than 47 per cent over the past five years, according to data compiled from Statistics Canada’s consumer price index reports. Still, Canadians pay an average of more than $5 per gigabyte of data, Soberman noted.
“But the good side is there’s lots of choice and you can probably find a plan that’s best for you, which means you’re going to get the service you need at a reasonable cost, but it takes effort to find that optimal plan for you.”
This report by The Canadian Press was first published Jan. 11, 2024.
Companies in this story: (TSX:RCI.B, TSX:BCE, TSX:T, TSX:QBR.B)
