The Canadian Radio-television and Telecommunications Commission (CRTC) says Bell’s new device handling fee might violate its rules prohibiting activation fees and other charges.
In a letter to Bell, the commission took aim at the carrier’s $40 device handling charge. Bell added the new fee earlier this week, replacing its $80 connection fee ahead of new rules prohibiting those kinds of charges. The device handling fee only applies to customers who purchase smartphones from Bell, unlike the old connection fee that applied to all new customers (with some exceptions, such as the fee commonly being waived for online orders).
The new rules, which come into effect on June 12, prohibit certain types of fees that present a barrier to switching cellphone and internet plans. However, the CRTC also makes exemptions for “reasonable fees,” such as charging for installing new internet equipment at a customer’s home. It also exempts fees related to optional services or products that are “not required for the delivery of the telecommunications service.”
That last part is where the CRTC is stepping in, with the commission saying phones are required for the delivery of telecom services, and thus the device handling fee may violate the rules. Here’s how the CRTC put it in the letter to Bell:
“A phone is a device that is required for the delivery of the wireless service customers are purchasing. It would not appear that the device handling charge falls under the exemption considered by the Commission for optional services and products. A fee associated with providing a phone may be considered to be an activation fee that is prohibited under s. 27.04 of the Act.”
Moreover, the commission suggested that Bell should resolve the situation before the CRTC needs to start a formal regulatory action:
“It is my hope that this situation can be resolved at this stage and will not require more formal regulatory action on the part of the Commission once the prohibition comes into effect.”
Bell, for its part, thinks the device handling fee is fine. The carrier told MobileSyrup this week that its fee “fully complies with all CRTC rules.”
Source: CRTC
