Rogers, Bell, and Telus are under review by Canada’s telecommunications regulator for implementing wireless charges that may violate new federal regulations. The Canadian Radio-television and Telecommunications Commission (CRTC) recently enforced rules prohibiting telecom companies from imposing additional fees for activating, modifying, or terminating cellphone and internet plans. These banned charges include early termination fees and activation fees for phone plans.
The objective of these regulations is to facilitate Canadians in switching wireless and internet plans to access better offers. However, the CRTC has expressed concerns that the three largest telecom providers in Canada are not complying with the rules. Telus, Bell, and Rogers have each received cautionary letters from the regulator, indicating that certain fees introduced by them, such as Telus’s $15 SIM card fee, Bell’s $40 device handling charge, and Rogers’ $40 device setup charge, $25 device shipping fee, and an unspecified SIM fee, may contravene the regulations.
According to Matt Hatfield, executive director of the advocacy group OpenMedia, these fees could be an attempt by the major telecom companies to circumvent the new regulations and recover lost revenue. Hatfield criticized these practices as reminiscent of activation fees under a different guise, suggesting that they exhibit questionable corporate conduct.
Despite the regulator’s scrutiny, Bell, Telus, and Rogers assert that their fees are compliant with the CRTC regulations. The CRTC initially engaged with Bell in May following the introduction of its $40 device handling charge. Bell contends that this fee covers fulfillment costs for customers who purchase a phone or device alongside their wireless plan. While the new regulations permit telecom companies to levy charges for optional products and services, the CRTC has indicated that Bell’s device handling charge does not fall within the exemption.
In response to the CRTC’s concerns, Bell argued that the fee is exempt since customers are not obligated to buy a phone when subscribing to a new plan. However, the CRTC remained unconvinced and requested Bell to confirm by June 17 whether the contentious fee has been discontinued.
Similarly, the CRTC raised issues with Rogers regarding its $40 device setup fee, $25 shipping charge, and SIM card fee. The regulator notified Rogers to address these fees by June 18 and provide an explanation, as they appear to not be exempt from the regulations. Rogers clarified that the shipping and SIM card fees are not new, with the SIM charge applicable only for lost or damaged cards. The company argues that its device setup fee is exempt under the new regulations since the purchase of a device with a plan is optional.
Regarding Telus, the CRTC is in a dispute over its $15 SIM card fee introduced for physical and digital SIM cards. The regulator informed Telus that the fee may not qualify for an exemption under the new rules. Telus defended its SIM charge, stating that it is a product for purchase rather than an administrative fee.
The CRTC has warned Telus, Bell, and Rogers of potential regulatory action if the issues are not resolved. The regulator aims to prompt the telecom companies to eliminate the fees promptly to avoid prolonged enforcement procedures. The CRTC confirmed that the review process is ongoing.