Big telcos set to hit many Canadians with internet price hikes

Canadians' thirst for fast, reliable internetservice has surged in recent years, and so hasthe amount we're paying to stayconnected.

For many customers, the cost of home internet is about to get even more pricey as the big telecom companies hike rates once again.

"Internet is expensive enough," said Rogers customerEric PolsinelliofOshawa, Ont. "There's nothing I see on my end that justifies that extra $8."

On March 12, Rogers will raiseprices for all its current internet plans by $8 a month, with the exception of its cheapest package, which will rise by $4 a month.

On April 1, Bell will increaseinternet prices by $5 a month for customers in Ontario and by $3 a month for Quebecers. In both provinces, charges for exceeding one's internet data limit will also go up by $1to $4 per extra gigabyte.

RivalTelus says it has no current plans to raise internet prices. However,some customers are still feeling the pinch after the company ended its bundle discountin late January, which provided customers who signed up for multiple servicesa monthly discount of $3 per service.

Rogers, Bell and Telusalso hikedprices on some internetplans in 2017.

Living online

News of the latest round of price increases didn't sit well with some customers.

"I would rather not pay more, but what can I do?" said Bell customerLarry McLean ofToronto,who also got hit with the same $5 internet price hike in 2017.

"I'm tired of price gouging," Polsinellitweeted to Rogers after learning his current $70 internet bill is going up by $8 a month.

According to Statistics Canada, Canadian households spent an average of $594on internet services in 2016, a 35.6 per cent increasecompared to2012.

"Just so much of our life is dominated by the web," said Katy Anderson ofconsumer advocacy groupOpenMedia. "People are spending more and more money per month to access the internet."

As a result, revenues are also on the rise.

Arecent report by the industry regulator, theCRTC, found the telcos' internet service revenues climbed to $10.2 billion in 2016 a jumpof 10.2 per cent compared to the previous year, and the biggest increase for any telecom service, including wireless.

Rogers, Bell and Telus all said they needto raise internet prices or in Telus's case, end the bundle discount to generate thefunds requiredtoupgrade their networks and keep up with growing demand for their services.

"We're continually investing to deliver great value and fast, reliable internet for our customers now and in the future as demand continues to grow," Rogers spokespersonMichelle Kelly said in an email.

Telecommunications consultantLawrenceSurteessays telcos do have added costs when theyexpand their networks. However, he's not certain that explains why internetprices have continued to creepup over the past couple of years.

"They budget that, they figure out how much it's going to cost, then they do an increase. I'm not quite sure why they need to do second or third increases," said Surtees, with market intelligence firmIDCCanada.

"I'm a bit skeptical."

Polsinelli says his family uses the internet for everything from their phone service to watching Netflix.

Still, he says he's not prepared to pay more for what he's getting.

"I rely on the internet, but I need to be realistic as a consumer here."

To make his point, PolsinelliinformedRogers on Twitter that he's considering moving to upstart internet service providerTekSavvy.

"If they're not going to at least match the prices I can get somewhere else, I will just abandonship," he said.

Shop around

Vancouver-based OpenMedia recommends unhappy customers consider smaller providers such as TekSavvy and Distributel that offer competitive pricing for internet services.

"They can be good alternatives for Canadians," Anderson said.

OpenMedia also believes the federal government should intervene to help make internet service more affordable.

In 2016, the CRTC declared broadband internet a basic service to whichall Canadians are entitled.

OpenMedia is now calling on the government to implement a national broadband strategy that would include mandating telcosprovidea low-cost, basic high-speed internet package and encouraging more competition in theindustry.

"If we want Canadians to be able to participate in the digital age, we need to ensure there's actual packages there that make sense for Canadians in terms of pricing," Anderson said.

Rogers says it's already helping low-income Canadians by offeringa $9.99per month basicinternetplanto more than 150,000 people living in social housing.

TELUSoffers a similar$9.95dealto more than 33,000single-parent families receiving financial or disability assistance inB.C. and Alberta.

Meanwhile, Polsinelli is still waiting to see if Rogers will offer him a better deal for his internet service.

So far, the companyhasn't budged. But TekSavvy has weighed in, tweeting to Polsinelli, "No price increases from our side."