CRTC Investigating Viability of Three-Year Financing Plans for New Devices
Some Canadian carriers have recently introduced the option to finance phones over the course of 36 months.
According to a new report from CBC, the Canadian Radio-Television and Telecommunications Commission is currently looking into mobile phone plans that allow customers to “spread the cost of new devices over several years to determine if they comply with an industry code of conduct that limits mandatory contract terms.”
A notice distributed by the regulator to various companies says that providers offering this plan must submit responses to over a dozen inquiries by the end of the month.
According to the report, the CRTC wants more information regarding the terms of the financing agreements that are currently in place, the devices that are eligible for financing, and whether financing is available to customers who don’t want to subscribe to a wireless plan.
The notice comes a week after Rogers announced brand-new 36- and 24-month device financing options.
The CRTC‘s wireless code required carriers to limit contracts to 24 months or less, and there have since been questions as to whether carriers can acceptably offer longer-term financing plans.