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Shaw is planning to hike Internet rates in the New Year

Shaw is now responding to a story News1130 brought you over the weekend about price increases to Internet service coming in the New Year.

While Shaw declined an opportunity to speak on air, a spokesperson for the company did say customers were notified about the rate adjustment on their bills starting November 1st 2014.

One of the reasons given for the rate increase is to provide “the best Internet experience possible,” adding “packages are designed to provide value for our customers. We have service tiers to meet the needs of a wide variety of customers’ budgets and internet users.”

 

Original story:

VANCOUVER (NEWS1130) –¬†Happy New Year, for some of you. Internet service is about to cost you way more money.

Starting January 1st, if you’re a Shaw customer you will see an addition four to ten dollars tacked onto your bill, depending on the tier of service you’re signed up for.

SFU marketing professor Lindsay Meredith says being the first telecommunications company to make the move is a risky one.

“Clearly Shaw must be sweating a little bit here to make a move of this sort because it would be considered a relatively dangerous move. That says to me they are taking a hit on their cable delivery business,” he explains. “I expect the rest of the guys to jack their prices too. I think what consumers are going to find annoying is these rate hikes look like they are well in excess of standard levels of inflation. So the bottom line becomes why do you guys have to push the inflationary envelope here.”

Meredith notes telecommunications costs in Canada are some of the highest in the world.