Statistics Canada is making changes to how it estimates the cellular price index, as announced on its Consumer Price Index (CPI) website in June 2024. The upcoming enhancements will involve a new approach to estimating cellular services’ price index, with a technical paper describing the new method set to be available on August 20.

In June 2024, CPI data showed a smaller decline in cellular services prices compared to the previous month (-12.8% in June versus -19.4% in May), according to StatsCan.

While the telecom industry highlights the declining CPI data for cellular services, it’s essential to consider if this translates into lower prices for consumers. The CPI data is based on tracking data bucket prices and cost per gigabyte, rather than average monthly bills. Wireless carriers often offer significant amounts of free data bonuses, which can impact the data analysis.

Major players in the telecom sector, such as Bell, Rogers, and Telus, understand how Statscan calculates its results and are mindful of government initiatives to lower telecom prices. This awareness may influence how they advertise their prices to reflect statistically lower figures without substantial changes in what consumers actually pay.

Despite fluctuations in CPI data, average revenue per user (ARPU) metrics – reflecting what consumers are willing to pay for their monthly bills – have remained stable. It will be interesting to see how StatsCan presents its cellular prices index in the upcoming months.

Stay tuned for more updates on telecommunications trends and pricing adjustments!