TORONTO — A new study by market research firm Leger, conducted on behalf of Distributel Communications, found the majority of customers of large telecom companies in Canada feel dissatisfied and frustrated to be paying some of the highest prices in the world for home Internet. A significant number also reported feeling trapped by their current Internet service provider.
These and other survey findings were released by Distributel in a news release on Tuesday, to coincide with a Distributel presentation at the annual Canadian ISP Summit, being held in downtown Toronto this week. The national survey, entitled Broken Connection: Canadian Consumers’ Views on Large Telecommunications Providers, provides insight into Canadians’ perception of the affordability, service, value and respect they receive from large telecom providers. The online survey of 1,535 Canadians was conducted between October 18-21, 2019, using Leger’s online panel.
“Achieving a truly competitive telecommunications marketplace is the best way to ensure that Canadians across the country have access to the benefits of consumer choice,” said Matt Stein, CEO of Distributel, in the news release. “However, the results of this survey paint a picture of Canadians who are frustrated that the large incumbent Internet service providers rely on the lack of competition and choice to maintain the status quo.”
The following is an overview of select survey findings:
- While almost all Canadians surveyed have Internet access in their home, the majority are customers of the big telecom companies: Nearly all (97%) of Canadians surveyed have Internet service in their home. Almost eight-in-ten (79%) are customers of one of the big telecom providers, while only 3% are customers of smaller independent companies.
- Canadians reported feeling trapped by their current provider, with more than half in Atlantic Canada saying they felt trapped: 40% would like to change companies but said they feel trapped by their current Internet service provider. Just over half (53%) of Atlantic Canadians are more likely to say they would like to change Internet providers but feel trapped.
- Customers of the large telecom firms said they feel they have limited choice when it comes to changing companies: 65% of Canadians who have home Internet from a large telecom company said they feel there is no point in changing telecommunications companies as they are all pretty much the same.
- Lack of competition has led Canadians to falsely believe there are no alternatives to the big telecom firms: Nearly half (45%) believe there are no alternatives to the large Internet service providers, according to the survey.
- An anti-consumer environment has been nurtured and is thriving across Canada: Almost half (49%) of Canadians surveyed said they feel that it is too difficult to change Internet service providers.
- Canadians are frustrated they are paying some of the highest prices in the world for home Internet: Nearly all (90%) Canadians who have home Internet said they are frustrated they are paying much higher Internet fees than consumers in other countries. Rural Canadians (96%) are significantly more likely to be frustrated with paying more than other countries compared to urban and suburban residents, the survey found.
- Customers of the large telecom firms have experienced price increases over the last 24 months — almost half without notification: Just over two-thirds (67%) of Canadians surveyed who have home Internet from a large telecom company say their Internet service provider has increased the price of their home Internet in the past 24 months. Among those who saw a price increase, 41% say the price increased without any notification.
- Despite recent price increases, Canadians said they are experiencing an unacceptably low increase in value: Only 12% of Canadians with home Internet say they are getting more value in their products and services after a price increase. While still low, urban Canadians (16%) are more likely to say they got better service after a price increase, compared to suburban Canadians (8%) and rural Canadians (10%).
In August, the CRTC lowered wholesale Internet rates, which Distributel says opened the door for the industry to invest, innovate and offer enhanced services at fair prices. However, in September, after six of Canada’s largest Internet service providers asked for leave to appeal the CRTC’s decision to lower wholesale broadband rates, the Federal Court of Appeal granted a temporary stay of the CRTC decision, which Distributel now says further delays the intended benefits to Canadian consumers.
“Canadians have clearly voiced their concern about the status quo created by the large telecommunications firms,” Stein said in the news release. “The limits they have deliberately placed on consumer choice, fairness, affordability and competition have led to unacceptable levels of dissatisfaction. And when 40 percent of their customers say they want to change companies but feel trapped by their current provider, that’s a clear sign that the status quo is not serving Canadians.”
