Cost of Basic Mobile Phone Plans on the Rise

price of cellphone planWhen the Canadian Radio-television and Telecommunications Commission (CRTC) released its national wireless code of conduct last year, the intent was to protect consumers. While that may be happening, new reports indicate it has spurred another less desirable effect – increased cost.

The code included provisions allowing consumers to cancel a wireless contract after just two years when three-year contracts were the industry norm. This has led wireless providers to hike the cost of their basic plans, with the average plan increasing to $36 from $31 in the last year.

However, on the flip side, heavy users are enjoying a substantial discount, with plans dropping to $80 from $94.

“The reduction of contract terms placed upward pressure on service plan prices given there is now a shorter period available to recover the handset subsidies,” states the recently released Wall Report, which was commission by the government.

The Canadian government is pushing for the introduction of new companies into the market in an effort to increase competition and drive down rates for consumers.

*Source: Toronto Sun