Telecom CEOs told federal committee prices are dropping but failed to paint clear picture why Canadians aren’t seeing decrease

Three months after Rogers and Bell notified some customers of price hikes on their mobile plans, the CEOs of the companies, along with the CEO of Telus, appeared before the House of Commons industry committee in an attempt to explain their actions.

MP Francesco Sorbara called Rogers increases, which were up to $9/month for some, “tone-deaf.”

Rogers CEO Tony Staffieri told MPs that part of the reason why the company implemented price changes earlier this year was to give customers on legacy plans without contracts an opportunity for “choice.”

“The customers could…get onto a plan that was in market and give them the best value for money for their circumstance,” Staffieri said. “That was really the important part to us.”

The CEO defended the hike, saying the increase only impacted a “small percentage” of customers, with the average increase being $5.

Bell CEO Mirko Bibic didn’t answer a question if customers will see similar price hikes, and Telus CEO Darren Entwistle said he wouldn’t speak about the specifics with competitors.

What the CEOs of Bell and Telus didn’t mention was both companies implemented their own versions of price hikes. Some Bell customers saw an increase of $6/month. Telus recently hiked the price of a plan its flanker brand Koodo introduced during the holiday season by $6/month.

The three CEOs swore prices for mobile services have decreased. During the questioning, they repeatedly pointed to data from Statistics Canada showing wireless prices dropped 50 percent over the past five years.

Many of the MPs who spoke during the meeting wanted to know why Canadians aren’t seeing this decrease in their own bills, a question the witnesses skillfully avoiding answering.

The most robust explanation came from Entwistle, who said the industry hasn’t successfully communicated with Canadians the “value” and “cost of services” it provides.

Other factors for the discrepancy in pricing include a higher usage of user data and the type of devices people use. While Entwistle didn’t point to the specifics, he said the industry doesn’t control the economics of devices. “We are price takers, not price makers on that front.

Another factor MPs touched on was the availability of the companies offering 5G connectivity on their flanker brands.

Rogers-owned Fido doesn’t offer 5G services. While Bell-owned Virgin Plus and Telus-owned Koodo do, the plans are limited.

MP Ryan Williams wanted to know what was keeping Fido from offering 5G services; was it a lack of competiton? Staffieri didn’t directly answer the question, stating Canada has “very robust and healthy competition.”

Update 04/01/2024 1:45pm ET: In the interest of accuracy, the word “summoned” has been changed to “appeared.”