CRTC launches review of wireless code

Canada’s telecommunications regulator has launched a review of its three-year-old wireless code, the set of rules that effectively killed threeyear cellphone contracts and put an end to exorbitant roaming fees.

The Canadian Radio-television and Telecommunications Commission announced Thursday that it will evaluate the code and asked for input from Canadians. The review will culminate with a public hearing in February.

The first wireless code, which came into effect in December 2013, allowed customers to ditch their providers after two years without cancellation fees, required providers to unlock smartphones and put a cap on charges for data overage and roaming at $50 and $100 in any bill cycle. The rules have been credited for largely eliminating eyebrow-raising cellphone bills for customers who used data on vacation or whose kids streamed way more video than allotted.

Major providers including BCE Inc., Telus Corp. and Rogers Communications Inc. fought the timing of the rules in federal court, arguing that customers who signed three-year contracts before the code came into effect shouldn’t have been allowed to walk away without fees. They lost.

The CRTC created the code to create clarity around contracts, set industry standards and limit the risk of bill shock. At the time, it promised to review the rules within three years, spokeswoman Patricia Valladao said.

“We want to reflect the evolution of the wireless market,” she said. “We’re evaluating how effective it is. If need be, we can make changes.”

Both consumer groups and representatives from the Big Three providers said they look forward to participating in the review, with Telus and Rogers adding they’ve supported the code since the beginning.

But consumers should expect a fine-tuning rather than massive change, as the wireless code is largely working, Public Interest Advocacy Centre executive director John Lawford said.

“It won’t be as earth-shaking as the first time around,” he said.

Lawford anticipates the process will focus on data, as many of the complaints the centre receives relate to data overage charges of more than $50 when one person blows the limit on shared plans. Other frequent complaints he hears surrounding pricing and privacy are beyond the scope of the hearing. Wholesale pricing and differential pricing are also off the table.

OpenMedia, an Internet advocacy group, also welcomed the review. It too cited data charges on family plans as a top consumer frustration, along with unilateral changes to contracts and protections for prepaid customers. It lauded the code as a step forward for consumer rights, but called for policies to encourage more competition from independent providers.

“Sadly, improved customer protections will only go so far — what we really need is action to tackle the high prices and lack of choice in our broken telecom market,” OpenMedia spokeswoman Katy Anderson said in a statement.

The proportion of wireless complaints compared to Internet and telephone complaints dropped for the first time in 2015, the year the code fully applied to all consumers, according to a report by the Commissioner for Complaints for Telecommunications Services. Still, the commissioner reported an increase in violations against the code, mostly related to contracts and related documents. Wind Mobile, now owned by Shaw Communications Inc., had the highest number of breaches by far.

The CRTC has issued six clarifications to the code since its inception, including a decision requiring providers to make prorated refunds available to consumers who cancel their plans in the middle of the month. Telus has asked for guidance on this decision, which it says will cost it tens of millions of dollars annually.

The public can submit comments to the CRTC until Sept. 26. The CRTC will also hold online discussion forums in September and February.