CRTC wireless code gets a second look
Three-year-old rules may see tweaks, but nothing ‘earth-shattering’ likely
Canada’s telecommunications regulator has launched a review of its three-year-old wireless code, the set of rules that effectively killed three-year cellphone contracts and put an end to exorbitant roaming fees.
The Canadian Radio-television and Telecommunications Commission announced Thursday 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 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.
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.
Open Media, 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 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,” Open Media spokeswoman Katy Anderson said in a statement.