This report tackles questions around how consumer’s purchase home internet and interact with home internet service providers (ISPs) and bundled services in Canada in 2024. Explored throughout the Report, consumer preferences around internet speed, price, spending habits and bundling will be elucidated, with a particular focus on various demographics such as ethnicity and age. Specific consumer engagement and retention strategies from brands like Bell, Rogers and TELUS, such as flexible pricing models and customizable bundles are also reviewed.
The Report also dives into consumer attitudes towards customer service automation – such as AI chat or phone bots – and misleading advertising around speeds… Finally, the Report also delves into social media trends, which ISPs are leveraging for marketing, and offers an outlook on future market trends based on current economic challenges and demographic shifts.
Moving into 2025, ISPs must focus on affordability, reliability and inclusivity, while harnessing innovative technologies to enhance customer experiences, thereby bridging the digital divide and fostering a more equitable digital landscape for all Canadians.
Michael Lloy, Research Analyst
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- What you need to know
- Market predictions
- What consumers want and why
- Opportunities
- Expansion of flexible pricing models
- Investment in Network Infrastructure
- Development of Inclusive Digital Solutions
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Consumer Insights
- Type of internet connection
- Canadians show a clear preference for cable and FTTP connections
- Graph 1: type of internet service used at home, 2024
- DSL, Satellite, Dial-up and hotspot usage remain niche options
- Rogers positioned, via authorized dealers, affordable 5G home internet as a an answer for rural internet access
- Nearly half of Canadians pay over $75 per month for home internet
- Enhancing service quality: how Bell and Rogers are strengthening customer trust through improved support and communication
- Oxio promoted its high-quality customer service on TikTok
- Exploring flexible pricing models for ISPs: pay-as-you-go, tiered plans, and loyalty rewards
- Young consumers are significantly more likely to use wireless-based services
- Graph 2: type of internet service used at home, by age, 2024
- Younger consumers are more likely to spend less money on internet
- Graph 3: amount paid for internet services each month, by age, 2024
- Brands that showcase a fight for affordability can garner goodwill among young consumers and students
- Brands can promote 5G network options to lower income consumers
- Graph 4: type of internet service used at home (select), by household income, 2024
- Black and South Asian consumers will be more interested in affordably priced plans
- Graph 5: amount paid for internet services each month, Black and South Asian consumers vs overall, 2024
- Black, South Asian and First Nations Canadians are significantly more likely to utilize 5G hotspots
- Graph 6: type of internet service used at home (select), by race, 2024
- Tailoring internet services: how Canadian ISPs can meet the diverse needs of communities
- Service bundling
- One-in-five consumers who switched providers cited better bundling
- Sometimes value can be intangible – Bell makes bundling easier
- The vast majority of Canadians bundle their home internet services
- Graph 7: services bundled with home internet, 2024
- For bundlers, bills commonly exceed $100
- Graph 8: amount spent on internet services and bundling, 2024
- While cable is typically bundled by older consumers, newer forms of television have been adopted by younger ISP users
- Graph 9: type of TV service bundled, by age, 2024
- Older consumers are significantly more likely to bundle home phone, while younger consumers bundle mobile service
- Graph 10: home and mobile service bundling, by age, 2024
- In fact, younger consumers are likely to refuse a landline even if offered for free
- Graph 11: “I wouldn’t accept a telephone landline even if it was offered for free”, by age, 2024
- There are clear opportunities to promote home security to older consumers
- Graph 12: security service bundling, by age, 2024
- Brands have clear opportunities to expand services to younger consumers
- Graph 13: amount spent on internet services and bundling, by age, 2024
- Better bundling discounts and deals could entice younger consumers to open their wallets
- Graph 14: “I try to avoid bundling extra services because I want the lowest price”, by age, 2024
- Different ethnic groups have distinct bundling habits
- Graph 15: services bundled with home internet (select), Black and South Asian consumers vs overall, 2024
- Bundling spend for Black and South Asian Canadians mirrors their basic internet spend
- Graph 16: amount spent on internet services and bundling, by race, 2024
- Chinese Canadians may be more open to bundling deals that save money
- Graph 17: “I try to avoid bundling extra services because I want the lowest price” (% any agree), by race, 2024
- Black and South Asian consumers are significantly more likely to avoid bundling landlines than other demographics
- Graph 18: “I wouldn’t accept a telephone landline even if it was offered for free” (% any agree), by race, 2024
- Loyalty and retention
- Around half of consumers are long-term customers of their ISP
- One-fifth of customers switch services due to dissatisfaction
- Graph 19: cause for switching internet service providers, 2024
- Automated chat bots and phone systems are a pain point for customers
- Graph 20: “I find internet providers’ automated chat bots and phone systems frustrating to use” (% any agree), by age, 2024
- Despite only 20% of consumers dissatisfied with their current service, over double that percentage keeps an eye out for better offers
- Graph 21: “I pay attention to ads from home internet providers when I see/hear them” (% any agree), by age, 2024
- A large barrier to switching for some consumers seems to be a perception of lack of options
- Graph 22: “I feel that I have multiple options when choosing an internet service provider” (% any agree), by gender, 2024
- Younger consumers have less tenure with their ISPs
- Graph 23: length of time with internet service provider, by age, 2024
- Newer Canadians are likely to switch at least once in their first 10 years living in Canada
- Graph 24: length of time with internet service provider, by time spent living in Canada, 2024
- Black and South Asian consumers are more likely to switch, while Chinese and First Nations consumers show high brand loyalty
- Graph 25: length of time with internet service provider, by race, 2024
- South Asian consumers are significantly more likely to pay attention to ISP ads than consumers overall
- Graph 26: “I pay attention to ads from home internet providers when I see/hear them” (% any agree), by race, 2024
- Deep dive: the importance of price
- Over half of consumers switched for a price-related reason
- Graph 27: price-related reasons for switching, 2024
- Virgin Plus eschews “catchy” jingles in its ads, focusing primarily on price
- Price is a primary driver for many consumer ISP behaviours
- Graph 28: attitudes and behaviours towards price (% any agree), by age, 2024
- South Asian consumers present an excellent opportunity for brands to approach with new customer offers.
- Graph 29: “It is worth regularly changing internet providers for the new customer rates” (% any agree), South Asian consumers vs overall, 2024
- Newer Canadians are particularly price-conscious when it comes to ISP selection
- Graph 30: attitudes towards internet speed (% any agree), newer Canadians (<5 years) vs overall, 2024
- Interestingly, older consumers seem to be more value conscious
- Graph 31: price-related reasons for switching, by age, 2024
- Deep dive: the importance of speed
- Almost two-thirds of consumers agree that the first thing they look for when choosing a home internet service is the speed
- Graph 32: the first thing I look for when shopping for home internet is the speed of the service (% any agree), by age, 2024
- Almost a third of consumers that have switched providers did so for better speeds
- Bell touted its high internet speed when inviting customers to switch
- Men are more likely to know the speed of their home internet
- Graph 33: “I know how fast my home internet is” (% any agree), by age and gender, 2024
- Younger consumers are significantly more likely to pay for premium internet speeds
- Graph 34: “I would consider paying extra for a faster, multi-gig plan” (% any agree), by age and gender, 2024
- Canada’s ethnic minorities are significantly more likely to show interest in faster, multi-gig plans
- Graph 35: “I would consider paying extra for a faster, multi-gig plan” (% any agree), by race, 2024
- Many consumers feel that ISPs are lying to them about speed
- Graph 36: advertised internet speeds are deceptive (% any agree), by gender, 2024
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Competitive strategies
- Launch activity and innovation
- Bell expands fibre optic network across Canada to bridge digital divide and enhance connectivity
- Rogers launches enhanced 5G home internet plans with speeds up to 1 Gbps
- TELUS leads the way in sustainability among ISPs with eco-friendly innovations and community engagement
- Netgear’s smart mesh Wi-Fi 7: seamless connectivity for Canadian homes
- Bell Canada launches AI-powered platform to revolutionize customer service in 2024
- Marketing and advertising
- Facebook, Instagram and YouTube are the most widely utilized platforms on a daily basis
- Graph 37: daily social media usage, by age, 2024
- Bandwidth and download speed are common marketing points in ISP promotions
- ISP brands attempted to connect with gamers via strategic ads and gaming-related social media challenges
- ISP brands are finding high engagement on TikTok
- ISPs are building relationships with women
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The Market
- Market context
- Economic challenges drive a demand for more affordable internet
- Market drivers
- Costs remain elevated for Canadians
- Graph 38: Consumer Price Index, 2020-24
- Rising gasoline prices put pressure on Canadians
- Inflation continues to be a primary concern for Canadians across all age groups, but it is particularly troubling for older Canadians
- Graph 39: top three concerns over the next six months, 2024
- Canadians’ higher savings rates persist post pandemic amid inflation and economic uncertainty
- Graph 40: household savings rate, 2019-2024
- Canada’s demographic shift: the growing importance of genuine diversity in marketing and media
- Graph 41: proportion of visible minority in Canada, 1981-2036 (projected)
- Canada’s aging population: brands must adapt engagement strategies for growing elderly demographic
- Graph 42: population aged 0-14 and 65+, 2000-40*
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Appendix
- Consumer research questions
- Consumer research methodology
- Generations
- Abbreviations and terms
- Abbreviations and terms (cont’d)
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