Canadian wireless industry offers more value and lower prices, new report finds
Survey reveals that consumers receive on average $ 948 per month in excess of consumers of their mobile wireless services
OTTAWA, ON, October 6, 2021 / CNW / – Canadians continue to derive increasing value from their mobile wireless services, according to a new report from PwC Canada commissioned by the Canadian Wireless Telecommunications Association. This value is largely attributable to the billions of dollars that Canadian wireless network providers invest each year in advanced wireless networks. These continued investments have resulted in increased network performance, lower prices per GB of data, and increased functionality of connected devices that replace the need to purchase separate products and services.
Main conclusions of the report:
Data consumption and price evolution:
- From 2015 to 2019, Canadians nearly tripled their average data use, with a compound annual growth rate (CAGR) of 27%. This trend is expected to accelerate due to the widespread launch of unlimited data plans in 2019.
- Despite this growth in consumption, the average revenue per user (ARPU) remained relatively stable for wireless service providers, increasing only 1.9% CAGR compared to $ 64 To $ 69 between 2015 and 2019.
- The average cost to consumers per 1 GB of mobile data has fallen from almost 28 $ To $ 10, a decrease of 64%, from 2015 to 2019. In particular, consumers can now purchase plans with unlimited data for less than $ 3 per GB of high-speed data.
Consumer surplus – “Willingness to accept survey”:
To determine the value, or consumer surplus, that Canadians attribute to their mobile wireless services, Canadian participants were surveyed using a “willingness to accept” approach. With this method, respondents were asked to indicate what monthly monetary amount they would be willing to accept in exchange for giving up their smartphone for a year. This was on top of what they would save if they didn’t have a monthly plan bill. The main findings of the survey include:
- The average amount required to give up your smartphone was $ 948 per month, or $ 11,376 per year.
- 17% of respondents would not accept less than $ 2,500 per month, or $ 30,000 per year.
- 59% of respondents said they would accept at least $ 150 per month, or $ 1,800 per year, to abandon their smartphone.
- The average consumer surplus of $ 948 per month is 158 times the industry surplus (free cash flow) of $ 6 per month per wireless subscriber.
Increased functionality of wireless services and devices saves money through reduced spending on goods and services (including landlines, photos, video, audio and print) that can be replaced by wireless services and devices:
- As Canadians increase their consumption of mobile wireless services, any increase in spending on wireless services is largely offset by a decrease in spending on surrogate wireless categories; and
- Spending on wireless and substituted wireless categories as a percentage of income fell 2.2% of the CAGR, effectively increasing the discretionary income of Canadians to save or spend on other household expenses.
“For most Canadians, ssmartphones and wireless services are now an integral part of their daily lives. With this report, we are now able to quantify the value that Canadians place on their mobile wireless services compared to what they pay for such services ”, noted Robert ghiz, President and CEO and Canadian Wireless Telecommunications Association. “This report also shows how critical continued investment in wireless networks is to delivering increasing value at lower prices. “
This report also assesses the benefits that Canadian wireless consumers will receive by Canada transitions to 5G networks. Previous studies commissioned by ACTS determined that 5G wireless networks will contribute as much as 40 billion dollars annually at from Canada economy by 2026, while creating 250,000 jobs. Much of this will be through the adoption of use cases in the digital economy, mainly technological innovation through automation, artificial intelligence, Internet of Things (IoT) platforms, smart sensors and Moreover.
“With 5G networks enabling increased adoption of the digital economy, Canadians can expect to receive significant economic, social and environmental benefits, ” noted Chris Mar, partner at PwC Canada. “These benefits go beyond the calculated consumer surplus. For example, advances in remote health care will create social benefits by providing better quality services to people living in rural communities. 5G networks are maturing and inspiring new innovations for the digital economy. “
A copy of the report entitled “Understanding the Growing Value of Wireless Services to Canadians” can be found here.
The Canadian Wireless Telecommunications Association (CASW) is the authority on wireless issues, developments and trends Canada. He represents companies that provide services and products in the wireless sector. ACTS and its members are committed to maintaining from Canada leadership in wireless communications and ensuring that all Canadians can enjoy the benefits of advanced wireless connectivity. ACTS administers a number of initiatives on behalf of its members, including corporate social responsibility programs and the National Common Short Codes program.
SOURCE Canadian Wireless Telecommunications Association
For further information: Media information: CWTA, Guy Gallant, 613-617-3025, [email protected]