Rogers, Bell, and Telus are under investigation by Canada’s telecom regulator for implementing wireless charges that may breach recently enacted federal regulations. The Canadian Radio-television and Telecommunications Commission (CRTC) introduced new rules prohibiting telecom companies from imposing additional fees for activating, modifying, or terminating cellphone and internet plans. These fees, including early cancellation charges and traditional activation fees for phone plans, are now prohibited.
The aim 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 adhering to the rules. Telus, Bell, and Rogers have received official notices from the regulator regarding their new fees, 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, all of which are deemed potential violations of the regulations.
Matt Hatfield, the executive director of OpenMedia, a non-profit advocacy group, suggests that these fees are an attempt by the major telecom companies to circumvent the new rules and recover lost revenue. He criticized these actions, likening them to questionable practices akin to activation fees under different names.
Despite the regulator’s concerns, Bell, Telus, and Rogers maintain that their fees are compliant with the CRTC regulations. The CRTC initiated the dispute with Bell in May when the company introduced the $40 device handling charge. Bell argued that the fee is exempt as customers are not obligated to purchase a phone when signing up for a new plan. However, the CRTC disagreed, stating that the device handling charge does not fall under the exemption.
In a similar vein, the CRTC also raised issues with Rogers over its $40 device setup fee. Rogers was given a deadline to confirm whether it has ceased charging the fees and to provide a rationale if not. Telus faced a dispute over its $15 SIM card fee, with the regulator questioning its qualification for exemption under the new rules.
The CRTC warned all three companies of potential regulatory action if the issues remain unresolved. Hatfield commended the CRTC’s efforts to prompt the telecom companies to cease the fees promptly to avoid prolonged enforcement processes. The CRTC confirmed that its investigation into each matter is ongoing.
