How to choose a phone plan in Canada

Chapter 3 of 3

It’s important to know that phone plans in Canada rarely include everything you need. You often have to choose between having a reasonable amount of data or having unlimited calls, for example.

Plans that include absolutely everything are usually incredibly expensive, so it’s worth thinking about what’s most important to you, especially if you’re on a budget. Plans are usually flexible and allow you to add options à la carte, so you could always pick a plan with lots of data and add extra minutes or SMS when needed.

Prepaid plans or classic contract plans

There are two types of plans in Canada: prepaid (without commitment) or a classic contract (usually requires some form of long-term commitment).

Prepaid plans

This option is where you prepay for your plan at the beginning of each month. When you are finished with your phone line, your services will end when you stop paying (you are not tied to a contract for any specific number of months).

You can choose an automatic renewal so that you don’t forget to keep your phone line active. Some operators even offer special deals if you subscribe to automatic renewal. This can still be cancelled at any time.

Prepaid plans are a practical option if you don’t know how long you want to stay in Canada. It’s easy to pay for your prepaid plan online with a credit card. If you don’t have a card you can use, you can also visit a store and pay in cash.

Classic contract plans

For this option, you will usually sign up for a contract that lasts a certain amount of time. It will be harder to exit your contract early, so only take this option if you’re sure you plan to stay in Canada for the duration of your contract. Some contracts include a new handset, which is handy if you have a locked phone (a phone locked to your current country/network that won’t work with a Canadian SIM card).

Unlike prepaid plans, where you pay at the start of the month, you will usually pay at the end of the month with a contract. You’ll pay for the same amount of minutes, SMS and data each month, even if you aren’t using your full allowance. This is unlike prepaid plans, where you have the flexibility to change packages to better match your usage.

You’ll find a multitude of packages on offer, some of which can be customisable. It’s difficult to recommend one company over another because prices continually fluctuate and deals come and go. However, expect to pay at least CA$30 per month for a basic plan and upwards of CA$50-CA$60 for a standard plan.

How do I make my decision?

When deciding on the best deal, make sure you shop around and check each company’s offers. Pay particular attention to:

• Coverage: Do they offer provincial coverage only, country-wide coverage, Canada + USA coverage or worldwide coverage? (Even though they are neighbouring countries, it is rare for Canadian phone plans to automatically cover the US as well. If you’ll be making regular trips across the border, be sure to check how much extra this will cost on your Canadian phone plan, or look into a temporary US SIM card).
• SMS: Do they offer unlimited SMS? Watch out for phone plans where texts you receive are free, but texts you send out incur a fee!
• Minutes: Do you have a limited number of minutes for calls, unlimited calls in your local region but charges for calling elsewhere in Canada, or unlimited calls in Canada but charges when calling other countries?
• Data: The more data, the more expensive a phone plan. Watch out for reduced speeds beyond a certain amount of consumption (even with unlimited data plans)!
• Other options: Be aware of hidden charges for things you may be used to getting for free in your home country, e.g. access to voicemail, number display, shareable data, line opening, SIM card, etc.

Remember that different provinces/territories in Canada have different tax rates. It may be cheaper to buy a phone plan in a state with low taxes even if you plan to settle elsewhere (for example, you could buy a phone plan in Alberta for 5% tax and then move to neighbouring B.C., avoiding B.C.’s 12% tax rate).