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Longer Contracts Mean Higher Bills for Canada's Mobile Users

But the average mobile user is paying less for monthly phone service

The average amount mobile users in Canada are spending on wireless subscriptions is going down, according to research from J.D. Power and Associates—but users with long-term contracts are still paying more.

Last year, J.D. Power found that, on average, mobile users were paying C$77 ($74.76) for their monthly service, an increase of about 13% over 2012 rates. But spending on mobile bills dipped this year, according to the annual study, down to C$70 ($67.96).

But that's how much the average mobile user is spending, and bills among those with two- or three-year contracts tend to be higher, likely because these contracts involve more data plans and other add-on services than prepaid mobile services typically involve.

Meanwhile, the majority of mobile users in the country have these longer-term plans—with an outright majority of mobile phone users signing on for three-year contracts, despite their having the highest average monthly bills.

eMarketer estimates that overall, 27.7 million people in Canada will own and use a mobile phone at least monthly this year, including 17.1 million who will own and use smartphones.

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