On Tuesday, Telus announced that it will implement a $15 SIM fee that would replace the $80 connection fee on June 11. However, that SIM fee may also violate the CRTC’s upcoming rules that prohibit various types of activation fees.
Scott Hutton, vice president of consumer, analytics and strategy of the CRTC, wrote a letter to Stephen Schmidt, vice president of telecom, policy and chief regulatory legal counsel at Telus, encouraging the company to reconsider the SIM fee, as charging customers for a SIM card or eSIM might be considered an activation fee because it’s a necessary part of delivering telecom services.
The new fee rules come into effect on June 12 and prohibit fees that are a barrier to switching cellphone and internet plans, such as activation, connection and cancellation fees. The CRTC does make exemptions for “reasonable fees,” such as charging for installing internet equipment; however, Hutton’s letter indicates that Telus’ new fee would not meet such exemptions.
“A SIM card or eSIM is required for the delivery of the wireless service customers are purchasing. It would not appear that the SIM purchase fee falls under the exemption considered by the Commission for optional services and products. A fee associated with providing a SIM card or eSIM may be considered to be an activation fee that is prohibited under s. 27.04 of the Act,” reads the letter from Hutton.
“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,” it continues.
Bell also recently rolled out a new $40 ‘device handling fee’ to replace the connection fee, and received a similar letter from the CRTC suggesting the new fee could also violate the upcoming rules.
Source: CRTC
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