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Canada ranks last in survey of global mobile data plan prices

Canadians have among the most expensive mobile data plans in the world
Customers check a new iPhone 7 exhibited at Puerta del Sol Apple Store the day the company launches their iPhone 7 and 7 Plus on September 16, 2016 in Madrid, Spain. (Photo by Gonzalo Arroyo Moreno/Getty Images)

Data plans in Canada are among the most expensive in the world, and it’s leading to low usage rates, according to a new survey.

The data comes from a report by Swedish telecom competitiveness specialist Tefficient which was released last week.

The survey analyzed mobile data usage in 32 countries and found that Canadians will likely be envious of their counterparts in other countries who are seeing lower bills and thus using their cellphones less to check their social media, watch videos, post photos and perform other tasks that require data while on the go.

“The most expensive mobile data countries are Canada, Belgium, Germany, Czech Republic and the Netherlands and – as a consequence – mobile users in these countries are using very little mobile data,” Tefficient said in the report.

Canadians have among the most expensive mobile data plans in the world
(Tefficient)

Canadian cellphone providers are earning about $60 per gigabyte for each mobile subscriber, which was the highest among all surveyed countries.

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In comparison, telecoms south of the border are generating about $21 a month.

In turn, Canadians are using about half as much data as their U.S. neighbours.

“Bigger data buckets lead to lower revenue per gigabyte, which increases usage,” said Tefficient.

“At least when customers can use those big buckets also on data-only devices.”

The report said that cellphone plan providers might be tempted to keep prices up and data plans small in order achieve good profit margins.

However, Tefficient said these companies risk alienating their customers who, in turn, realize that they can rely on Wi-Fi instead.

“One could expect that the fastest growth – relative to the usage level – would be seen in low-usage countries,” the telecom consultancy said.

“On the contrary, our analysis finds that growth is faster in higher-usage countries where operators have introduced unlimited, or very generous, mobile data propositions.”

This isn’t the first time that Canadian cellphone plan providers have faced criticism for pricey offerings.

A CRTC report from earlier this year found that the average monthly household bill for mobile services has jumped from $79 in 2013 to $83 in 2013.

Canadians are also paying the third-highest rates for mobile data in three different price tiers among G7 countries and Australia.