When I lived in USA I paid $30 a month with T-Mobile for Unlimited 5G Data which came in handy streaming Sports and uploading large video files to edit remotely. In an era when "unlimited data" is standard in many countries, Canada remains an outlier. Despite its reputation for progressive policies and high standards of living, the country has yet to embrace true unlimited data plans. Here's why:
1. Market Structure and Limited Competition
Canada’s telecom industry is dominated by three major players: Bell, Rogers, and Telus. This oligopoly restricts competition, allowing these companies to maintain high prices and restrictive data policies. Smaller providers often rely on networks owned by these giants, limiting their ability to offer competitive alternatives.
2. Geographic Challenges
Canada's vast size and relatively sparse population create significant logistical hurdles for network infrastructure. Building and maintaining cell towers across remote areas is costly, and these expenses are passed on to consumers. Telecom companies argue that these costs make truly unlimited plans economically unfeasible.
3. Data Usage Caps and Throttling
Most Canadian "unlimited" plans include data caps—usually between 20GB to 50GB—after which speeds are throttled significantly. This throttling makes activities like streaming or online gaming impractical, effectively ending the "unlimited" experience for most users.
4. Government Regulation
Canada’s regulatory environment has not enforced lower prices or greater competition in the telecom sector. While there have been steps to encourage more affordable options, these measures have not resulted in true unlimited plans. Countries like the U.S. benefit from regulatory frameworks that foster competition, leading to more consumer-friendly options.
5. Consumer Advocacy and Pressure
Despite growing public frustration over high mobile costs, progress has been slow. Advocates argue that stronger government intervention is needed to break up the oligopoly and create an environment where unlimited plans become viable.
6. Radio Spectrum
You can only move so much data through the available wireless spectrum. If you give everyone unlimited and they try to use it you max the capacity on your network/use all the spectrum and service starts to drop off/get very slow.
Conclusion
Canada’s lack of true unlimited phone data plans stems from a combination of limited competition, geographic challenges, and regulatory gaps. Until these factors change, Canadians may continue to pay more for less.
UPDATE: I was recently informed by a friend who is with Telus who as a loyalty customer pays $55 ($75 for new customers) for 200GB 5G Data followed by unlimited 4G Data. So maybe Canada is closer to getting to USA prices. So I stand corrected.
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Source: Dan Lalonde
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