Canadian families spent over $190 each month last year on their communications services as the costs for wireless, TV and Internet services all grew at a rate higher than inflation, according to the 2014 edition of the CRTC’s Communications Monitoring Report.
In 2013, the average Canadian family spent $191 per month on communications services, a 3.2% increase from $185 per month in 2012. Household spending climbed by an average of $1.54 to $53.56 per month for cable and satellite television services, $1.91 to $69.33 per month for wireless services and $4.42 to $35.37 per month for Internet services. Spending on home telephone service went down by $2.01 to $32.85 per month.
Higher spending on wireless and Internet services can be attributed, in part, to the fact that Canadians are using more wireless data and subscribing to higher broadband Internet speeds. The prices of telephone, television and Internet services rose between 1.6% and 3.7% in 2013, while inflation was 0.9%.
Cable and satellite companies reported a profit margin on earnings before interest, taxes depreciation and amortization (EBITDA) of 42.2% for their television, Internet, telephone and wireless services. This was an improvement over a profit margin of 41.1% in 2012. Similarly, wireless companies reported an EBITDA profit margin of 43.2%, compared to 40.7% the previous year. The profit margin for wireline companies decreased from 41.1% in 2012 to 40% in 2013.
Total revenues for the Canadian communication industry reached $61.9 billion in 2013, a 1.9% increase from $60.8 billion in 2012.
I WISH I was only spending $190 per month – that`d be a deal!!!