The CRTC has again sent formal warning letters to both Bell and Telus on the same day its ban on activation and switching fees took effect (back on Friday, June 12), demanding answers about new charges the regulator believes may violate the new rules.
CRTC Director of Social and Consumer Policy Nanao Kachi sent the letters to Bell’s Assistant General Counsel Philippe Gauvin and Telus Vice-President of Telecom Policy Stephen Schmidt on June 12, giving both companies until June 17 to respond (this Wednesday).
After removing $80 connection fees to follow the CRTC’s directive, both Telus and Bell introduced new fees instead. Now, the CRTC says those fees need to be removed as well, according to the letters shared with iPhone in Canada by the regulator.
Bell’s Device Handling Charge
The CRTC flagged Bell’s new $40 device handling fee, which the regulator says doesn’t appear to qualify under the exemption for optional services and products under the new policy. The issue isn’t new, as CRTC Vice-President Scott Hutton had already written to Bell on May 6 warning the company the fee would likely be offside. Bell pushed back on June 10, arguing the charge is fully compliant with the Telecommunications Act and the Wireless Code.
Kachi’s letter on June 12 to Gauvin is direct: “I’m requesting that you confirm whether Bell has nonetheless ceased its practice of charging a device handling charge to customers opting to purchase a device along with their wireless service plan.”
The CRTC wants a clear answer from Bell by June 17. “Commission staff will consider all available compliance options to ensure that fees that are a barrier to switching cellphone and Internet plans are prohibited as intended by the Act,” Kachi wrote.
Telus’ SIM and eSIM Purchase Fee
Telus is facing a similar challenge over its new $15 SIM purchase fee, which also applies to eSIMs. Hutton had written to Telus on June 9 flagging the same concern, just three days before the ban took effect.
Kachi’s letter to Schmidt asks Telus to either confirm it has dropped the fee or explain itself. “I’m requesting that you confirm whether Telus has ceased its new practice of charging its customers a SIM purchase fee. If Telus has not ceased this practice, explain why and provide supporting rationale as to why Telus considers this practice to be in compliance with the exemption for optional services and products set out in the above-noted policy, or in compliance with the policy more generally.”
The CRTC says both both Telus and Bell need to reply by June 17, or face formal regulatory action over the new fees.
Time to sit back and grab some popcorn folks, as we watch this regulatory fight play out over wireless fees.
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