4 Reasons Why the Internet is Expensive in Canada

The internet has become a major part of our daily lives in the past few decades. There are many ways we use the internet today in modern society.

It has become the communication channel for entertainment, business, education, and work. In Canada, internet prices are still very high and expensive.

This article will discuss why the internet is expensive in Canada, which factors affect internet prices in Canada, and how we can create a solution to end the hardships of using the internet.

4 Reasons Why the Internet is Expensive in Canada

Internet prices are high because of many separate factors. This section will discuss the four basic reasons why the internet is so expensive in Canada.

1. Canadian Taxes and Fees

Many taxes and fees affect internet costs in Canada, and there is no perfect solution to solve those issues. Still, we can combine different solutions to reduce the cost of using the internet for a common citizen.

2. Internet Taxes

In Canada, the internet is not exempted from the existing sales taxes. In most provinces, like Quebec and Alberta, there are different internet taxes. The first type of tax is a telecommunications tax which only applies to residential services.

This tax ranges from 7%-9% of the monthly cost. The second type of tax is on the retail ISP service, which ranges from 8%-13% of the monthly cost.

3. Federal and Provincial Fees

In Canada, some federal and provincial fees apply to certain internet services. Some services are exempt from those fees, and others vary from province to province.

The federal government applies a GSA General Services Agency fee to any internet service provided as a telecommunications service.

4. Competition

In most countries, there are a lot of small companies or startup companies that provide internet services to the local citizens. But in Canada, those small businesses don’t compete with the big players that offer similar products.

That is why internet service providers increase the prices. If there are more small and startup companies, the competition would be high, making prices lower for the citizens of Canada.

Factors that Affect the Price of the Internet in Canada

Many factors affect the price of the internet in Canada. The list that I have given below is an overview of those factors and how they affect the cost of the internet in Canada.

1. The Cost of Services

When you check the internet price, the most common factor that affects the price is the cost of services. In Canada, it can range from 5 cents to 7.9 percent per month, depending on the internet service provider.

2. Government Policy

Another factor that affects the price is government policy in how they set their internet prices. For example, there are different ways for internet service providers to overcharge their users in Canada. They are usage-based billing(UBB), open access, net neutrality, and zero-rating.

3. Technology

There is also a factor called technology plays in the price of internet services. For example, if we compare the price of cable internet with DSL internet service, the cable is faster and more efficient than DSL. But the price of cable internet is much higher, making the consumers use DSL service instead.

4. The Cost of Infrastructure

Another factor is the infrastructure cost in the local area where you get internet. Some cities in Canada, like Toronto, have a high infrastructure cost to support internet services. As a result, it makes the price is higher than other cities with low infrastructure costs.

5. Government Regulation

One other factor is government regulation which means how much government control over what internet service providers do with their business. For example, there are new policies such as open access and net neutrality in Canada.

Solutions to Fix Internet Prices in Canada

We can create a solution to fix internet prices in Canada. Firstly, I will discuss how we can reduce the cost of internet services in Canada.

1. Making Open Access Better for Every Canadian Citizen

In most countries, like the US and UK, there are various internet service providers such as Cable TV companies who offer internet services to their customers. The most common type of cable internet is cable modem service, also called Paced DSL, or you may also refer to as ADSL or VDSL service.

2. Make Usage Based Billing Better for Every Canadian Citizen

Usage-based billing is a method used by ISP companies to charge their customers. The most common usage-based billing method is Prompt Pay, which means that you will be charged every month depending on how much data you use or the amount of time you spend online.

3. Net Neutrality in Canada

Net neutrality is a policy that aims to keep ISP companies from having control over the internet, which gives them the power to control how much data people can access on their internet.

4. Zero Rating in Canada

Zero-rating is a method that ISP companies use to offer free data plans to their customers. However, there are many rules and regulations in this method that need to be studied before implementing it.

5. Make Internet Service Providers Compete With Each Other in Canada

In most countries, like US and UK, many ISPs compete by offering cheap internet packages. It creates competition between them, making the internet price low for the general public.

How Would the Customers Benefit from These Solutions

The customers would benefit a lot if they used our solutions.

Firstly, it would help the customers save their money by using our solution. It will let them pay less by using our services which are faster, reliable and easy to use.

Secondly, you can use them at home and in the office because it instantly connects to your internet connection. It means that the users can use it anywhere they want.

Finally, we have made our app user-friendly that anybody can use it without any issues. It will help the customers to save their time from searching internet packages from different providers.

Conclusion

In Canada, we need to reduce the cost of the internet so that people can spend less on using internet services. We have given some solutions to make it happen in this article, and those solutions are effective and easy to implement.