Hey,
Canada just did something it should have done years ago. Then Bell, Rogers and Telus reminded us why it took this long.
@deanbrownca Rogers Bell and Telus Just Got Caught Inventing New Fees the Day Old Ones Got Banned #telecom #canada #crtc #greenscreen
On June 12th the CRTC officially banned activation fees, switching fees, and cancellation fees. Junk fees Canadians have been paying for decades with no justification other than the fact that the big three could charge them.
The ban wasn't 24 hours old before the workarounds appeared.
Bell launched a $40 "device handling charge." Telus introduced a $15 "SIM purchase fee." Rogers rolled out a $40 "device setup charge." All of them landing the same week the ban took effect. Their argument is that these aren't administrative fees, they're product purchases and therefore technically exempt from the ban.
The CRTC sent warning letters to Bell and Telus the same day the ban kicked in. The deadline for both companies to comply or explain themselves is tomorrow, June 17th. Rogers is under review but hasn't received a letter yet. OpenMedia's Matt Hatfield called it exactly what it is, "shady used car salesman behaviour."
If you're activating a new phone or switching carriers right now, check your bill carefully. These charges may already be on there.
Canada already pays some of the highest wireless bills in the world. This ban was supposed to be a small win. Instead the big three had replacement fees ready before the regulation was even in effect. This is not a mistake. Three separate companies launching three separate new fees the same week a fee ban takes effect is a coordinated middle finger to Canadian consumers.
The CRTC has threatened regulatory action but that process historically takes years. Until the penalties actually hurt a company making billions every quarter nothing changes. The fine has to be bigger than the revenue from the fee. Right now it isn't.
The CRTC deadline for Bell and Telus is tomorrow June 17th. Follow The Canadian Take for updates as this develops.
Canada ranks among the most expensive countries in the world for wireless service, consistently near the top alongside the US and UK.
The ban also covers contract cancellation fees, meaning if you try to leave one of these carriers today, they legally cannot charge you an exit fee. Though given this week, check your bill anyway.
Until next time,
Dean.
P.S. Have you already seen one of these new charges on your bill? Hit reply. If enough people are getting hit I'll make it a follow-up next week.