CRTC allows Canadian carriers to lock phones again, with a catch

The Canadian Radio-television and Communications Commission (CRTC) is changing its rules preventing the sale of locked phones in Canada after complaints from Bell and Telus.

Essentially, the CRTC has temporarily suspended the ruling that mandates devices be sold unlocked. Now, any Canadian wireless provider can sell a device in a locked state. However, it must be automatically unlocked within two business days. Further, customers must also be able to request that the device be immediately unlocked. The two-business day lock will remain in place until the CRTC reaches a full decision.

The change comes after Bell and Telus separately sought changes to the device locking rules, claiming that selling unlocked phones increased incidents of theft and fraud. Phone locking refers to the practice of binding a phone to a specific carrier’s network, preventing it from being used on other networks. The CRTC banned this practice in 2017 and eliminated unlocking fees, removing hurdles that prevented Canadians from easily switching providers. However, even back then, the Big Three were complaining about the impact the move would have on theft and fraud.

Bell has been leading the charge on this issue since as far back as 2018, when it started locking phones it stored at retail locations. At the time, the carrier would unlock devices at the time of purchase. Last year, Bell started locking phones for 60 days after purchase as well, which the CRTC said was a violation of the wireless code. Despite the CRTC ordering Bell to stop the practice, it continued selling locked phones.

In May, Telus filed an application with the CRTC asking it to implement a new 60-day device locking period to address fraud and theft issues, and even said it would implement the change on July 30, 2026.

In its application, Telus claimed that the unlocking rules “inadvertently transformed smartphones into a highly liquid currency that drive violent robberies.” The telecom giant also added that “bad actors use stolen identities to open new wireless accounts, damaging the credit scores of victims.” Perhaps most interestingly, Telus claimed that Bell’s 60-day device locking policy led to increased incidents of theft and fraud for itself.

Along with the temporary rule change, the CRTC initiated a proceeding that requires Bell to show cause for why its locked device policy doesn’t violate the Wireless Code’s rules. Specifically, the rules are laid out in the code’s Section F1 i and ii, which state:

“i. Any device provided by a service provider to the customer for the purpose of providing wireless services must be provided unlocked.
“ii. If a device is, or becomes, locked to a service provider’s network, that service provider must unlock the device, or give the customer the means to unlock the device, upon request, at no charge.”

If the CRTC does find Bell in violation, the Commission says it will also consider enforcement measures. Under the Telecommunications Act, a corporation can face a fine of up to $10 million for a violation, with additional potential liability for directors.

The CRTC notes that Telus’ separate application for permission to introduce the 60-day lock has not been approved. The CRTC is instead asking Telus to confirm by August 21 whether it wants to continue with that application in light of the new proceeding.

Public Interventions in the ruling are due by September 14, with replies due September 24. Those interested in participating can do so by completing an online form, via mail sent to CRTC, Gatineau, Quebec K1A 0N2, or by fax sent to 819-994-0218.

Source: CRTC Via PlanHub on Reddit