Rogers, Bell, and Telus are under investigation by Canada’s telecom regulator for introducing wireless charges that may violate recently implemented federal regulations. The Canadian Radio-television and Telecommunications Commission (CRTC) issued new rules prohibiting telecom companies from imposing extra fees for activating, changing, or canceling cellphone plans. The banned charges include early termination fees and activation fees 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 has expressed concerns that the three major telecom companies in Canada are not adhering to the rules. The regulator has sent strong-worded letters to Telus, Bell, and Rogers, expressing that Telus’s $15 SIM card fee, Bell’s $40 device handling charge, and Rogers’ $40 device setup charge, $25 device shipping fee, and an undisclosed SIM fee all seem to contravene the regulations.
Matt Hatfield, the executive director of the advocacy group OpenMedia, believes these fees are an attempt by the telecom giants to bypass the new rules and make up for lost revenue. He criticized the companies, likening their actions to dubious practices often seen at used-car dealerships.
Despite the scrutiny, Bell, Telus, and Rogers assert that their fees are in compliance with the CRTC regulations. The CRTC first contacted Bell in May after the company introduced the $40 device handling charge. Bell argued that the fee covers fulfillment costs for customers purchasing a phone or device with their wireless plan. The CRTC, however, disputed this claim, stating that the fee does not fall under the permissible exemptions.
In a similar vein, the CRTC raised concerns with Rogers for its newly introduced $40 device setup fee, $25 shipping charge, and SIM card fee. The regulator gave Rogers a deadline to confirm the removal of these charges or provide a rationale for their continuation. Rogers defended its fees, stating that the shipping and SIM card charges are not new and that the device setup fee is exempt as device purchase with a plan is optional.
The CRTC is also in a dispute with Telus over its $15 SIM card fee introduced in June. The regulator contends that this fee does not qualify for an exemption under the new rules. Telus maintains that the SIM charge is exempt as it is a product for purchase rather than an administrative fee.
The CRTC has warned all three companies of potential regulatory action if the issues are not resolved. The regulator is urging them to eliminate the fees promptly to avoid prolonged enforcement proceedings. The CRTC’s review of these matters is ongoing.