Study Finds Internet Prices Rose 6% in Canada Last Year, Sparking Concerns About Affordability

Canadian internet prices are on the rise, and many are feeling the pinch. To find out more, we quantified exactly how much prices have increased in the past year and surveyed Canadians like you about their internet plans, concerns about affordability, and more. Here are the results.

Key Findings

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• Canadians are paying $102 per month for their internet on average, with 59% saying their internet plan is overpriced and 31% saying their plan is too slow.

• Over the past year, internet prices have risen 6.42% on average, and 40% of Canadians said they may not be able to afford their monthly internet bill if it rose by just 5%.

• People are ready for a change: 23% reported that they have upgraded their internet plan since the beginning of the pandemic and 23% more plan to upgrade this year.

• Many people are potentially missing out on savings, as only 42% of Canadians reported being aware of reseller ISPs.

Rising Internet Prices Are Concerning Canadians

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Canadian internet prices are notoriously among the most expensive in the world. As the graphic shows, Canadians currently pay an average of $102 per month for their home internet plan. That's well above the $25-85 that the vast majority (73%) report considering reasonable.

It's no wonder that 91% of those surveyed are worried that internet prices will continue to rise in Canada, with 75% saying they're moderately to extremely worried about it.

According to our pricing analysis, prices increased 4.31% on average in the past year for high-speed internet plans, meaning those which meet the CRTC’s target of a minimum download speed of 50Mbps and an upload speed of 10Mbps. While this is less than the average increase of 6.42% for plans overall, it still outpaces inflation. If prices continue to rise above the inflation rate for the next few years as they have over the past year, the outlook isn’t good for internet affordability.

Rising prices mean that many Canadians soon may no longer be able to afford their internet plan.

Out of the 40% who had doubts about whether they could afford a 5% price increase, 19% responded that they either “probably” or “definitely” could not. Over half (54%) of Canadians say they wouldn't be able to afford it if their monthly bill rose by 10%.

Canada’s Current Internet Plans

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Most Canadians already feel that they are paying too much for internet access. More than half of people think their home internet plan is overpriced, a third think their plan is too slow, and many don't know exactly what they're paying for in terms of the maximum download speed and data cap.

Our survey found that 41% of respondents use the same service provider for their internet and mobile service and 26% bundle these services, which means switching would require more effort.

The Struggles of Upgrading and Finding New Internet

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Since the Covid-19 pandemic began, many have felt the need to upgrade their internet, but finding a new plan can be a struggle. 31% of respondents reported having trouble finding internet plans available in their area. And when looking for new internet plans or options, 62% reported feeling frustrated and 55% felt confused.

Uncertainty about the way internet pricing works and is advertised is certainly a contributing factor to these feelings. Nearly a third, 29%, said they weren't aware of the fact that internet providers often advertise introductory prices for many of their plans, meaning that prices will go up after around 1-2 years. Even after learning what introductory prices are, 19% of those surveyed still weren’t sure whether they were currently paying these rates.

A Possible Solution: Reseller ISPs

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Most Canadians aren't aware of them yet, but there are over a dozen reseller ISPs across the country bringing lower rates and more options to choose from. Reseller ISPs, also known as independent ISPs, are third-party internet providers that buy access to the networks of major operators like Bell, Telus, Rogers, and Shaw at wholesale rates, and then pass on savings to customers by offering cheaper plans on those networks.

In our survey, 43% said they either have used or would be open to using a reseller ISP for their internet. The skeptics who said they wouldn't consider it cited switching to a brand they don't know as well (35%) and concerns with slower speeds (29%) as their biggest worries.

If you're unhappy with the internet speed you're getting from your plan or the price you're paying for it, you can check out our picks for the best internet plans in Canada, or use our internet search tool to find available plans in your area, including those from popular independent ISPs like VMedia, Teksavvy, and Distributel.

Conclusion

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The majority of Canadians surveyed feel they are already overpaying for their internet plan each month and prices have risen 6.42% on average in the past year. Of our respondents, 91% are worried about prices continuing to increase, and 40% said they might not be able to afford even 5% higher costs.

These factors no doubt contribute to Canadians' readiness for a change, with 23% having upgraded their internet plan since the pandemic began and a further 23% planning to do so in the next year. With competition between major ISPs and smaller providers, there's a broad range of plans and pricing available, and WhistleOut Canada is here to help you navigate them all.

Methodology

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WhistleOut Canada conducted an anonymous survey of 500 Canadians, asking their opinions about their internet service and prices. We analyzed the survey responses to highlight the most common sentiments in this report.

For our price analysis, we found the average internet price change from 2020-2021 for a total of 90 different internet plans. For current pricing, data was sourced directly from internet service provider websites, including Bell, Telus, Shaw, Rogers, Sasktel, Eastlink, Videotron, Distributel, VMedia, and Ebox. For past pricing, we used the Wayback Machine to check previous versions of internet provider websites, and when data wasn't readily available there, prices were sourced from MobileSyrup reports. Our analysis did not include bundles or promotional pricing. Instead, we used non-promotional pricing or pricing after a contract expired.