Further to my post yesterday about whether wireless bills have gone down… I got an email from Geoff White, counsel for the Public Interest Advocacy Centre, that hit the nail more closely on the head than the new report from J.D. Power has.
While that survey suggests that consumers are suffering from mass delusion, some simple reality checking shows that’s hardly the case. Here is PIAC’s comparison of basic smartphone plans from one of the big carriers from August 2012 and March 2014:
It’s true that subscribers are now getting more voice minutes, a faster network and a shorter amortization period on their subsidized phone (two years rather than three), but is that worth the big hike when the matching rise in the consumer price index over the same time was only 1.24 per cent?
As PIAC puts it: “In just two years the basic entry point into smartphone ownership (and with a bare minimum of data) has increased 46 per cent. This and similar price increases cannot be seen as positive for anyone except the service providers themselves.”
Unfortunately, that’s far closer to the reality consumers are experiencing than J.D. Power’s findings.
*PIAC’s data appears to have had an error in the overage calculation. The original chart above listed the pricing as “same” but has since been amended to indicate overage cost more in 2014.