Prepared for Canadian Radio-television and Telecommunications Commission
Supplier name: Kantar
Contract number: 82082-200074/001/CY
Contract value: $114,337.12
Award date: November 18, 2019
Delivery date: February 21, 2020
Registration number: POR 034-19
For more information on this report, please contact the CRTC at: communications@crtc.gc.ca
Ce rapport est aussi disponible en français.
The Wireless Code, which was established in 2013 by the CRTC, is a mandatory code of conduct for wireless service providers and applies to all retail mobile wireless voice and data services provided to individual and small business consumers in Canada. The Wireless Code applied to all wireless contracts as of June 3, 2015.
The CRTC committed to evaluating the effectiveness of the Wireless Code and the first review was completed in 2017 to assess whether the Wireless Code meets and continues to meet its objectives, which included ensuring that consumers are empowered to make informed decisions about wireless services. On June 15, 2017, the CRTC announced multiple changes to the Wireless Code, which came into effect on December 1, 2017.
The information collected in the 2020 Wireless Code public opinion research (POR) will help the CRTC assess whether Canadians are satisfied with the changes and whether further changes are required to ensure the objectives of the Wireless Code continue to be met. The 2020 research further explores a variety of topics such as wireless complaints, data usage, bill shock, and ease of switching service providers. This research also explores Canadians perceptions of the CRTC as well as issues related to the TV Service Provider Code.
The methodology was designed to ensure consistency with previous iterations of Wireless Code research conducted from 2014-2019.
This research was designed to address the following objectives:
The majority of Canadians continue to select plans that include data (83%), with a small but increasing number now opting for unlimited data plans (13% vs. 8% in 2019). Among those with data plans, virtually all (97%) take steps to manage their data so as not to incur additional costs.
Those with data plans continue to feel confident in their ability to manage their data, with the majority reporting they find it easy (81%). This is translating into fewer Canadians reporting overage fees than in previous years (41% vs. 48-49% in 2018 and 2019).
However, despite fewer Canadians paying overage fees overall, one-in-five (22%) Canadians continue to experience bill shock, consistent with previous years. This disconnect suggests that while Canadians are having greater success managing their data, many may not fully understand their contracts or how to manage other fees and services in a way that prevents bill shock.
Data overage fees continue to be the predominant source of bill shock but have decreased over the past year (50% vs. 56%), while unexpected set-up fees or service charges appear to be on the rise (7% in 2020 vs. 2% in 2019). Further, while most Canadians continue to report they find roaming fees clear and easy to understand (51%); international travel accounts for a greater proportion of bill shock versus last year (17% vs. 12%).
The Wireless Code mandates that providers must suspend data overage charges once they exceed $50 unless an authorized user consents to paying additional fees. Despite this, two-thirds (66%) of those who experienced bill shock continue to report they have had charges in excess of $50 during the past year, with most of these falling in the $50 to $100 range (55%).
Little has changed compared to 2019 with regard to Canadians’ understanding of their wireless contracts. The majority (57%) continue to find their wireless contract clear and easy to understand, and close to half (49%) of Canadians continue to find the explanation of cancellation fees clear and easy to understand, consistent with 2019.
However, after being in place for two years, many Canadians continue to find the explanation of the trial period somewhat unclear (41%). This may signal that general confusion continues to exist among some Canadians related to the trial period.
The number of Canadians who have changed their service provider is slowly increasing (up 4% since 2017). Overall, one-in-five Canadians report having changed their service provider in the past two years (20%). Being offered a better deal is the most commonly stated incentive to switch providers (58%), and few (14%) found the process of switching providers difficult.
The number of complaints Canadians report making has remained stable since Fall 2016, suggesting the Wireless Code is having a positive impact for wireless consumers. Levels of complaints have decreased nine percent overall from 2014 (17% vs. 26%).
The causes of complaints have undergone a shift in the past year, likely reflecting the decrease in data overage charges noted earlier. Incorrect charges are now the leading cause of complaints (35% vs. 26% in 2019). Other causes continue to include data charges (27%) and inadequate quality of service (22%). Compared to 2019, more Canadians now cite misleading information about contract terms as a cause for complaint (19% vs. 8%).
The Commission for Complaints for Telecom-television Services (CCTS) responds to complaints from consumers if the consumer believes the complaint remains unresolved by the service provider. Consumers continue to primarily complain to their service providers (93%) with few of these complaints also going to the CCTS (5%).
Little has changed over the past year regarding the type of plans Canadians purchase. Most continue to purchase post-paid services in 2020 (89%), with few purchasing pre-paid services (10%). Similar to the past two years, many also continue to use an individual plan (65%), with one-third (33%) opting for a family plan.
A number of additional demographic analyses were also undertaken, including age, gender, education, income and language. Compared to previous years, regional differences have dissipated. Demographic differences were noted in the following areas:
Canadians aged 18-54 continue to differ than their older counterparts (55+) in a number of ways:
Canadians in the youngest age cohort (18-34) differ from those 35+ in the following areas:
An in-depth analysis of older Canadians (55+) was undertaken to identify any significant differences between those 55-64, 65-74, and 75+ and their younger counterparts (18-54). The analysis found that while there is some variation between the 55-64, 65-74, and 75+ age groups, overall, those 55-64, 65-74, and 75+ consistently vary in the same manner (i.e., all three age groups are higher or lower than those 18-54). Thus, to ease reader burden and ensure clarity, the older cohort in this report has been grouped as 55+.
A few notable differences exist among Canadian’s whose primary spoken language is not an official language:
Despite having been introduced more than two years ago, awareness of the Television Service Provider (TVSP) remains low and has declined from previous years. In 2020, fewer (13% vs 17%) can recall the TV service provider code while more do not recall it at all (60% vs 56%). This may be a function of the reduced media attention on the Code as time goes on.
Only half of TV subscribers (50%) believe they have been informed of the basic service package, despite the requirement that all customers should have been informed. Given that this has remained steady over time, it may signal issues with the way in which the information is being disseminated to Canadians.
At an overall level, most Canadians continue to find their TV contracts clear and easy to understand (55%) and few (14%) have experienced difficulties related to TV service calls. Most Canadians continue to say they have not experienced an uninformed price change to their channels or package (76%).
The number of Canadians who have made a complaint about their TV services in the past 12 months has remained steady since 2019 (23% for both) but remains lower than in 2018 (27%). The nature of these complaints varies, but most continue to centre around incorrect charges (32%), inadequate quality of service (22%), or price (18%).
Canadians’ understanding of the mandate and role of the CRTC has remained stable compared to 2019 and is approaching 2014 levels. Thirty-six per cent now consider themselves very well/well informed about the CRTC, compared to 38 per cent in 2014.
Canadians’ impressions of the CRTC are similar to 2019 and remain more positive than in Fall 2016 (33% vs. 29%). This may be reflecting the increase in Canadians who feel well informed about the role of the CRTC over the past two years. However, it is worth noting that 62% of Canadians say they are not well informed about the role of the CRTC, which implies that many consumers’ impressions of the CRTC are based on little to no knowledge.
The results of this research provide evidence that suggests the Wireless Code continues to have positive impacts on Canadians. It also provides information to be considered for future updates of the Wireless Code and/or the Television Service Provider Code.
The methodology was designed to ensure consistency with previous waves of Wireless Code surveys conducted from 2014-2019. The sample was split into two distinct segments: Canadians who currently have a personal (or retail) wireless plan covering services such as voice, text and data and Canadians who do not currently have a personal (or retail) wireless plan. A telephone survey was conducted among 1,510 Canadians aged 18 years and older; 1,322 with those who have their own wireless plan and 188 with those who do not have a wireless plan. Included in this sample were Canadians who reside in cell phone only households (n=502). This sample also included Canadians that are under contract with TV service providers (n=1,060).
Interviews were conducted using a combination of random digit dialling (RDD) for the landline sample frame and pre-screened cell-phone only (CPO) sample. The RDD approach ensures that all telephone numbers are given an equal probability of being selected thereby minimizing sampling bias for this portion of the sample. Random sampling for CPO households is cost prohibitive and as such pre-screened CPO sample was used for the CPO household subsample.
A pre-test consisting of 10 completed English interviews and 10 completed French interviews was undertaken on January 10th, 2020. No changes were made after the pre-test and as such the data were included in the final data set. The survey was in field from January 16th – January 30th, 2020.
Due to the inclusion of pre-screened cell phone only sample, the sample is a non-probability sample and as such margin of error does not apply.
The total contract value for the project was $114,337.12 including applicable taxes.
I hereby certify as a representative of Kantar that the deliverables fully comply with the Government of Canada political neutrality requirements outlined in the Communications Policy of the Government of Canada and Procedures for Planning and Contracting Public Opinion Research. Specifically, the deliverables do not include information on electoral voting intentions, political party preferences, standings with the electorate or ratings of the performance of a political party or its leaders.
Tanya Whitehead
Kantar
Senior Director, Public Practice Leader