Family wireless plans in CRTC spotlight
Every family with a shared wireless plan must negotiate when one person uses the lion’s share of the allotted data before the period ends, but there is no rule governing how wireless providers notify these users of impending data overage fees.
The Canadian Radio- television and Telecommunications Commission questioned the merits of introducing such a rule Monday as part of the wireless code review, which is being debated at a four- day public hearing in Gatineau this week. The CRTC is tweaking the threeyear old code for an era of skyrocketing data usage.
One of the top issues is the explosion of shared plans since the code was introduced. Complaints arise when, for example, a teenager blows the data limit and accepts extra charges without the knowledge of the account holder, typically a parent. Some providers also charge up to $50 in data overage fees per device instead of per account, which consumer groups argue is against the spirit of the code.
Chairman Jean- Pierre Blais, who kicked off the hearing by noting that 22 million Canadians now have data plans compared to 13 million in 2011, questioned whether children should be allowed to consent to data overage fees and whether the account holder or the device holder should be notified when data limits are blown.
Consumer groups including the Public Interest Advocacy Centre advocated for a rule that gives account holders the sole power to authorize extra data usage unless they specifically grant that power to other device holders on their accounts.
“The person who pays the bill should have control,” the PIAC’s John Lawford said.
The PIAC argued that wireless providers should notify people when they hit 50 per cent of their monthly data limit so consumers can change their behaviour and avoid extra fees.
But the wireless providers that presented Monday – Telus Corp. and Bragg Communications Inc., a regional provider that operates as Eastlink – contend that consumers have choices under the existing regime. They argued that competition has spurred providers to create data management tools.
“The code has worked and it’s working well… we’re going to see more pressure in the markets through competition,” said Natalie Macdonald, Eastlink’s vice-president of regulatory. “We wouldn’t necessarily see the need for major changes to the code.”
Eastlink’s default position is that only the account holder can authorize additional usage unless they change that through an online portal. It notifies the account holder and device holder when they’ve used 75 per cent of data so they have time to adjust their usage.
Eastlink sees this as a “major differentiator” between it and the competition, and believes it will help it acquire customers.
Telus allows any device holder to consent to additional data as a default, but the account holder must specifically initial that term as part of their contract. It gives account holders the ability to take that consent away and gives them the ability to receive email notifications if any device adds additional data.
Commissioners also questioned the parties about phone subsidies, device unlocking fees, voice roaming charges and the simplicity ( or lack thereof ) of wireless contracts.
The public hearing continues Tuesday.