The cellular companies make the same argument you do; rates are high here because it’s such a large country to service. But given Canada’s population is actually concentrated along the U.S. border (90%) I am not convinced this flies. Australia is also a large country and rates are lower there too. If the cellular companies have been the beneficiaries of public largesse in the build out of their networks then they should be willing to face competition with MVNOs etc and/or lower prices. Europe is an interesting counter example, though the gasoline analogy seems a bit of a stretch. If Canadian public transport networks offered a viable alternative to driving as in much of Europe you may find more support for higher prices (I don't mean Vancouver's bike lanes either). As for cost of living generally, Deutsch Bank ranks Canada as the 5th most expensive country in which to live based on global prices. Obviously comparisons with the US vary around the $ but the US is still cheaper.