Bell, Rogers and Telus aren’t backing down on a handful of new cellphone fees, even after Canada’s telecom regulator warned the charges might be illegal, according to a report from The Globe and Mail, summarizing the latest replies from carriers.
In letters filed with the CRTC on Wednesday, all three carriers confirmed they plan to keep collecting the fees. Bell and Rogers have introduced $40 device handling charges, while Telus has rolled out a $15 SIM card fee.
The dispute goes back to a new policy that took effect last Friday, banning telecoms from charging fees that discourage customers from switching providers. The carriers argue their charges fall under an exemption for optional services, but the CRTC has already said the fees “do not appear” to qualify, and has asked each company to justify them or risk compliance action.
Bell’s assistant general counsel Philippe Gauvin defended the $40 device fee, saying it “is distinct from the activation or modification of a wireless service plan, recovers legitimate device fulfillment costs, and does not discourage customers from switching or modifying plans.”
Telus chief regulatory legal counsel Stephen Schmidt argued the company’s $15 SIM charge isn’t a fee at all. “The purpose of the amendments to the act is to prohibit junk fees, not to prohibit carriers from charging for goods and services. The commission’s definition ought to be read in this context,” he said.
Rogers vice-president of regulatory affairs Howard Slawner made a similar case for the company’s $40 device setup charge, saying “the charge is clearly related to the optional device purchase and not a consequence of an activation or modification of a telecommunications service.” Rogers also said two other fees flagged by the CRTC, a $25 shipping charge and an unspecified SIM fee, aren’t new and aren’t tied to activation.
The CRTC didn’t say what its next move will be, but with all three carriers holding firm, it’s setting up a real test of how far the new switching rules actually go, and how far the regulator will go to actually send a message to telecoms.
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If the “fees” are REQUIRED, why doesn’t the Apple Store charge a device handling fee? Also new iPhones don’t even have SIM cards?