The feds are changing the way telecoms pay to use wireless spectrum—the invisible airwaves that power your cellphone.
Innovation, Science and Economic Development Canada (ISED) announced a new fee structure on March 7. The updated system, the first in over 20 years, will kick in for the 2026–27 financial year and is designed to shake up how spectrum fees are collected across the industry.
The main goal is to make things fairer. Under the new rules, companies will pay using a tiered system, similar to how tax brackets work. Smaller amounts of spectrum will be charged at a lower rate, with higher fees kicking in only as a company owns more. This setup is meant to lighten the load on smaller regional carriers while pushing large telecoms like Rogers, Bell, and Telus to pay more.
According to estimates from Rogers, total industry payments under the new system will rise from $228 million to around $265 million in the first year, and could nearly double to $500 million by 2035. Rogers alone expects to pay $126.5 million in 2026, a 15 percent jump, reports the Globe and Mail.
Bell, Xplore, Cogeco, and Terrestar also anticipate paying more. Meanwhile, regional providers like Eastlink, Tbaytel, and Videotron’s Freedom Mobile will see costs drop. Telus will see costs decline.
Quebecor, which owns Videotron and Freedom, said it expects to pay just $430,000 starting in 2026.
Smaller and rural-focused telecoms like the new fee rules because lower costs will help them grow and compete. Big telcos, however, say the higher fees could slow down their network upgrades and lead to higher prices for customers (here comes the fear factor).
Bell warned that rising fees could mean reducing their network spending elsewhere, while Telus said the new structure may hurt future infrastructure investment. Rogers and Eastlink echoed concerns that the costs will eventually be passed on to consumers.
Consumer advocates don’t quite buy that argument. Geoff White from the Public Interest Advocacy Centre said that claims of higher prices are “a common incumbent threat” and that telecoms can afford to absorb the fees without making customers pay more (we know any costs incurred will likely hit consumers).
It cost ISED $148 million to manage spectrum in 2023–24, but Rogers estimates the department could collect $263 million in fees by 2026–27—far more than what’s needed to cover expenses.
Unlike in the U.S., where the Federal Communications Commission only charges enough to cover costs, ISED says its fees reflect the market value of spectrum. The money goes into Canada’s general revenue fund to help pay for government services.
Now, ISED recently has had a shake up under newly appointed Prime Minister Mark Carney. Anita Anand took over ISED from François-Philippe Champagne. Before this, she served as Minister of Transport and was previously Minister of National Defence. Champagne is now Minister of Finance (talk about musical chairs…).
The new fee system is supposed to push telecom companies to make better use of spectrum and give smaller players a fairer shot against giants like Rogers, Bell, and Telus. But will any of this actually lead to lower cellphone bills for you?
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Great with a recession looming over let's go ahead and increase prices so the government of Canada can do whatever undisclosed things with that money!
Its for your own good! Safe and effective!
If prices rise from the big 3 you simply switch providers
(unless you're one of "those" people who signed a contract for a phone you couldn't afford,i'll let you know a secret, the only phone I've ever purchased brand new was the Nexus 4 back in early 2013 for $199. I had that phone for a few years and when i cracked the screen i moved laterally to the LG Optimus G e970 which was essentially a nexus 4 with a sd card slot….anyway you know all those trade in deals your phone company offers? They resell all those phones, there is a plethora of subsidiary companies ie; Surplus by Design, 2nd turn Canada that resell used electronics that are actually the companies Staples and Best Buy those are just two off the top of my head)
Smartphones immediately lose value the second you purchase them, in 2022 i purchased a preowned motorola edge 2021, then i immediately went back to my LG G8X thinq from 2019 because of the audio DAC and microsd slot, I'm still using that 5 year old phone today.
liberate yourself…..bring your own device (heck you can go prepaid and sign up under an Alias like me 'Hugh Morris')
There is literally a budget disclosed every year as well as multiple audits to ensure that money is spent well. Just because you're not taking the time to look into things, it doesn't mean it's undisclosed.
$62B deficit without discussion and the unaccounted for money in the "Green Slush Fund".They didn't want to provide unreacted court ordered documents.
No need to ask because they prorogued government to stop the questions and, to ultimately close down any further investigations.
Is this the "budget disclosed" you speak of?
Another Liberal tax…
We know that they don't spend on improving their infrastructure or equipment, they simply keep on diminishing the service level as they have for decades while collecting hefty government funding to improve. Trouble is the rate of improvement has been pathetic.
What do you mean? 2 of the 3 just spent billions on purchasing and improving infrastructure in ontario alone, did you know for a 400ft underground cable replacement it costs roughly 80k in the winter and in summer it's about 60k and they replace thousands of underground and aerial cables yearly, they spend millions on headed equipment across the country aswell to better infrastructure and give you the best experience as possible with faster speeds etc. As much as you don't do the job so you don't know is showing when a cable company replaces an amp that amp is typically upward of 1000.00 cad depending on the type of amp used, they also employ together over 43000 Canadians across the country, I'm constantly upgrading infrastructure andnhave been fornthe past 7 years so don't act like your some big shot who knows what's happening behind the scenes
Could the government pi$$ off and stay out of our wallets? Globalist, diabolical, pos.
Does it really matter that their costs rise? They just pass it on to the consumer. rogersshaw, bell, telus (yes no caps no respect) have been ripping Canadians off for decades but the big fear is Trump right? WAKE UP PEOPLE WAKE UP Since 1968 the CRTC has been working to favor the big telecom companies, not the consumer like it was intended to do. The CRTC is a joke. all smoke and mirrors. And people wonder why Canada has some of the highest cellular service fees in the world. Thank the government-appointed CRTC.
Yep not only the extra cost will be passed to customers but they will also add a profit margin on top of it.
I pay $35 a month for service with LD, vmail etc and 100gb of 5G data that I come nowhere close to using. Feels cheap to me! It's certainly cheaper than the landline I paid for in the 90s lol. But I shop around rather than complain about the CRTC.
If you travel the world you might see Canada has the worst cellphone plans going but that’s ok if you’re fine with that. The CRTC is in bed with the big 3 and competition will never be allowed in.
I have no sympathy for the parasites we know as the big 3
Who will pass that bill onto us.
This is just another Federal Government tax on Telecom services that will ultimately be passed on to the consumer. With the cancellation of the Carbon tax the Liberals need to find other ways to fund their ambitious spending plans.
This will indeed lead to higher price. 100% of this amount plus an extra profit margin on top will be put in clients bill.
We don't live in a democracy when it comes to telcos. The Big 3 are an oligopoly that has 90 percent share in Canada. The CRTC is corrupted and refuses to let other providers from the US or other countries compete in Canada. What is the CRTC afraid of. Canadians pay some of the highest prices in the world when it comes to internet and cell phones. We are being shafted. Bell Rogers and Telus constantly raise their rates and the CRTC look the other way. It's like there is no ceiling when it comes to ripping off Canadians. All you can do in Canada to pay less is to go to a reseller like Teksavvy which is what I have done. Until things change that is my advice to Canadians.