Longer Contracts Mean Higher Bills for Canada's Mobile Users - eMarketer
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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

May 22, 2014 | Mobile

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.

Average Monthly Wireless Bill Among Mobile Phone Users in Canada, 2012-2014 (in C$)

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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