CRTC Cracks Down on Bell’s Locked Phones, but Grants Industry Temporary Pass

Canada’s telecom regulator has ordered Bell to explain why it broke national rules by selling locked phones for nearly a year and a half, putting penalties of up to $10 million on the line.

When you buy a phone from a carrier, it is supposed to be unlocked and work on other networks right away. The Wireless Code has explicitly stated since 2017 that “Any device provided by a service provider to the customer for the purpose of providing wireless services must be provided unlocked.”

The CRTC noted on August 14 that unlocked devices “offer consumers more choice and convenience, provide options to consumers travelling abroad, and eliminate a significant barrier to switching plans by improving device portability.”

However, Bell began locking phones for 60 days in April 2025 to curb store theft and fraud, which is said last week has basically ended robberies and fraud. When questioned about the practice, Bell claimed it was following regulations because legitimate customers receive an unlocked device automatically after 60 days at no cost. The company told the Commission that protections do not apply to “bad actors.”

The CRTC rejected the argument and explained that Bell’s approach was “effectively preventing any real opportunity to properly evaluate and test Bell Canada’s claims openly in a public proceeding prior to implementation.”

The regulator formally warned Bell in November 2025 to stop the practice. Bell questioned whether that direction was binding and asked for it to be withdrawn, but the CRTC recently confirmed it was binding and launched a formal proceeding against the carrier.

Bell now faces potential fines of up to $10 million for a first offence covering the entire period from April 23, 2025 to August 14, 2026. Company directors and officers could also face personal penalties up to $25,000 each.

While pursuing the case against Bell, the regulator agreed to temporarily pause the unlocking rule across the entire country. The Commission noted that it “questions the proportionality of this practice and its effect on such a large base of customers when compared to the relatively small number of persons who may be committing fraud or conducting other criminal activities.” However, it determined the security concerns were serious enough that “the balance of convenience tilt slightly in favour of a stay.”

Under the new temporary rules, Canadian carriers may sell locked phones, but only under strict conditions. Phones must unlock automatically within two business days rather than 60 days, carriers must unlock them upon request, and companies must clearly inform customers about the temporary lock.

Bell and other interested parties have until September 14 to file submissions for the proceeding.

Carriers using the temporary two-day locking allowance must submit fraud and sales data to the CRTC by October 30. Meanwhile, Telus has been given until August 21 to decide whether it will pursue its own separate application to lock phones for 60 days, which it says will start in October.

This sounds like some wishy-washy decision making by the CRTC. Now all carriers can sell locked phones, but only for two days? Meanwhile, Bell and Telus can continue to do 60 days without any penalty?