Rogers, Bell, and Telus are under investigation by Canada’s telecom regulator for implementing wireless charges that may violate recent federal regulations. The Canadian Radio-television and Telecommunications Commission (CRTC) implemented new rules prohibiting telecom companies from imposing additional fees for activating, changing, or canceling cellphone plans. These banned charges include early termination fees and the previously common activation fee for phone plans. The aim of these regulations is to facilitate Canadians in switching wireless and internet plans to access better deals. However, the CRTC is concerned that the three largest telecom providers in Canada are not complying with the rules.
Telus, Bell, and Rogers have been issued formal warnings by the regulator regarding specific fees introduced by each company. 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 are all flagged by the CRTC as potential violations of the regulations. Matt Hatfield, the executive director of OpenMedia, a non-profit advocacy group, suggests that these fees are a way for the telecom giants to bypass the new rules and make up for lost revenue.
Despite the CRTC’s concerns, Bell, Telus, and Rogers assert that their fees are in compliance with the regulations. The particular issue with Bell and Rogers revolves around device-related charges. Bell was contacted by the CRTC in May after introducing a $40 device handling charge. Bell argues that this fee covers fulfillment costs for customers who purchase a device with their wireless plan. However, the CRTC has challenged Bell’s position, stating that the device handling charge does not fall under the allowable exemptions. Bell is currently reviewing the CRTC’s request to confirm whether they have ceased charging this fee.
Rogers also faced scrutiny after initiating a $40 device setup fee. Following an inquiry from CBC News to the CRTC, Rogers was notified that the fee, along with an additional $25 shipping charge and SIM card fee, may not be exempt from the regulations. Rogers has until June 18 to confirm if the fees have been removed and provide an explanation if they persist.
In a similar vein, Telus is in disagreement with the CRTC over its $15 SIM card fee introduced on June 11. The CRTC has raised concerns about this fee and has given Telus a deadline to confirm whether it has been discontinued.
The CRTC has warned all three telecom companies of potential regulatory actions if the issues are not resolved promptly. The regulator is focused on urging the companies to eliminate the fees to avoid prolonged enforcement processes. The CRTC’s investigation into these matters is ongoing.
