Rogers, TELUS and Bell, along with SaskTel and MTS joined together back in the summer of 2013 to challenge parts of the freshly announced CRTC Wireless Code.
Basically, customers that signed three year contracts back in 2013 prior to the Code being implemented (later that year) would be able to leave their contracts after two years, which also meant not paying any remaining hardware subsidies (or cancellation fees), thusly leaving carriers to foot the bill. The document filed in court at the time read:
“The application of the Wireless Code to those contracts that terminate after 3 June 2015 is uncertain. This uncertainty has led and will lead to confusion in the marketplace, which will only be resolved once this motion is determined and, if leave to appeal is granted, the appeal is heard and a decision is rendered,”
These customers on three year contracts, as of June 3, 2015, will be able to walk away from their terms and not pay any remaining hardware subsidies or cancellation fees. This group, coupled with customers coming off fresh two-year contracts are being dubbed the ‘double cohort’ by the wireless industry, as companies will be fighting hard to sign up these new ‘free agents’.
The Globe and Mail reports tonight the Federal Court of Appeal ruled in favour of the CRTC today and dropped the challenge put forth by carriers.
Justice Denis Pelletier, writing for the unanimous three-member panel, found the code did apply retroactively to contractual rights already entered into before the code came into effect.
However, he found the CRTC’s decision to interpret its governing legislation in such a way that gave it the right to make the code retroactively effective was reasonable.
“It is reasonable to have all customers on the same footing as soon as possible,” Justice Pelletier wrote.
OpenMedia campaigns manager Josh Tabish, which worked with legal teams from the Canadian Internet Policy and Public Interest Clinic (CIPPIC) to oppose the carriers’ challenge, called this a huge win for Canadians:
“This is a great win for Canadians, and sets a strong precedent for the CRTC’s ability to stand up for great choice and affordability in Canada’s telecom market,” said in a statement.
Rogers and TELUS were not available for comment on the ruling, but BCE spokesman Mark Langton stated “the ruling is clear and we’ll comply.” If this is the case, then it’s most likely Rogers, TELUS, SaskTel and MTS will similarly comply as well.
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Double cohort is what they want. If you want a new device with a subsidy you have to have one of their new plans where you pay more for less. This is the Big Three Idiots dream.
BIG THANK YOU TO OPEN MEDIA,USA might not know you but ,you guys made this possible to happen.
Just to clarify – any 3-year contract that still exists can be broken on June 3rd? (my wife is waiting impatiently with a 4S for her 3 year Telus contract to expire in Jan ’16 and would love to gtfo beforehand)
When did she sign her three year contract? January 2013? It’s only for those signed before the Code was implemented in late 2013.
If that’s the case, as of June 3, she should be able to walk away, according to the Wireless Code.
Yup – January 2013. We’ve been watching her telus contract-o-meter count down her amount owing for months.
My Feb 2013 contract contains a device balance amortized over 36 months. The new code seems to require that the device be amortized over no more than 24 months. So in theory, on Jun 3, I will be able to walk away from a device balance of $148.27; if I am willing to give up my plan – which I am not.
So I suppose that Jun 3 I will have some leverage to negotiate for an early upgrade, with the existing device balance waived. Hopefully others will share their experiences in this regard, so that I can go in forearmed with whatever knowledge is req’d.
I’m starting to believe in Justice!
I am sooo jumping ship from Telus after June 3rd! This is a huge WIN (for once)
I called Rogers a couple of weeks ago since I plan to leave them on June 3rd. The CSR was adamant that while I could leave I’d have to pay the balance of the hardware subsidy (about $60 balance). I advised the CSR that, as per the wireless code, that’s not what was written. He then backtracked and said that I was right and the decision on the hardware subsidy was still pending. I can’t wait to hear the consumer stories that come out now that it is actually written in stone. Hopefully we can expect to see some great deals next month as wireless providers fight over new customers.