CRTC eliminates locked phones in Canada by December

As part of a decision on its review of the Wireless Code, the CRTC has eliminated unlocking fees for smartphones and mandated that all newly purchased devices must be provided unlocked as of Dec. 1, 2017. “Based on the record of the current proceeding, it is clear that locked devices still impede the development of a more dynamic marketplace. Unlocked devices offer more consumer choice and convenience, contribute to a decreased risk of bill shock by providing options to consumers while travelling abroad, and reduce a significant barrier to switching by improving device portability,” the commission said in its decision. “Further, while some evidence has been provided on the record of this proceeding regarding a potential link between locking devices or charging to unlock them, and subscription fraud, the Commission considers that it is not persuasive in the circumstances.” Carriers made $37.7 million in revenue by unlocking phones last year. The CRTC’s decision follows a suggestion during the hearing in February by Shaw Communications Inc.’s Freedom Mobile, which asked the CRTC to get rid of locked phones in Canada. Innovation Minister Navdeep Bains brought up the issue in a speech last week, saying unlocking fees are an “irritant” to consumers, and indicating the government would “closely monitor” the CRTC’s decision. "I am pleased that the CRTC has decided to eliminate unlocking fees for cellphones and require that new phones be sold unlocked, starting in December," Bains said in a statement Thursday. "This decision will provide Canadians with more choice and make it easier for them to switch to other wireless service providers. It will also encourage competition among providers, which could lead to lower prices for consumers." The CRTC chose not to unbundle subsidy fees from service charges on bills, writing that it “considers that the proposal to separate the device subsidy charge from the monthly wireless service charge on a customer’s bill would not be appropriate at this time.” That was the issue with the greatest regulatory risk to wireless providers, according to Desjardins Capital Markets analyst Maher Yaghi in a February note. The CRTC said that “there are alternative means to further the objectives of the Code, by providing customers with additional information related to device subsidies, which would allow to retain a greater degree of flexibility,” adding that providers “should do more to inform customers about when they are no longer subject to an and that their contract term has elapsed.” The CRTC also said that wireless plan “key terms” include data caps, something the Commissioner for Complaints for Telecommunications Services (CCTS) argued in favour of during the hearing. CCTS commissioner Howard Maker said at the time that making the data allotment in a customer’s wireless contract a key term would mean that a service provider could not make a unilateral change to that amount without the customer’s consent, with 30 day’s notice. In the decision, the commission added that interpreting “the term in this way limits the risk of bill shock and ensures that customers are not forced to choose between having to accept unforeseen changes that leave them paying more for service or receiving less service on the one hand, or cancelling a contract that no longer meets their needs while potentially being subject to an on the other hand.” The commission also said Thursday that for shared plans, “the account holder must, by default, be the one who consents to data overage and data roaming charges beyond the established caps.” Those two measures apply immediately, it said in the press release. According to a survey commissioned by the Forum for Research and Policy in Communications (FRPC), 85 per cent of Canadians said such approvals should be made by the account holder. In its decision, the CRTC noted that when it first developed the code, “multi-user plans and flex plans were not offered by most . As a result, they were neither discussed extensively on the record of that proceeding nor specifically addressed in the original Wireless Code policy.” It said that the question of how the code applies to multi-user plans “was one of the most contentious issues in this proceeding.” Customers will also be able to cancel their contract after 15 days and return their device in “near-new condition” as long as they used less than half of their monthly limit, a suggestion made by a coalition of consumer groups during the hearing. That measure also applies immediately. In separate statements Thursday, the Public Interest Advocacy Centre (PIAC) and OpenMedia welcomed the decision. The decision “will help Canadian cell phone users avoid unnecessary costs for cellphone unlocking and overage fees incurred by children and teens,” PIAC said in the statement, adding it welcomed the elimination of locked phones, which it said limited competition between cell phone companies. The new unlocking rules, PIAC counsel Alysia Lau said in the release, “should help seniors and other consumers who wish to take their phone with them when shopping for a better plan.” Internet advocacy group OpenMedia said Thursday the changes “will help to clarify for Canadians what is required of cell phone providers, and protect them from abusive behaviour by telecom companies.” Canadians with disabilities will be able to use all of their plans’ voice, data and text buckets during a 30-day extended trial period. During the hearing, the Deaf Wireless Canada consultative committee asked for a minimum of 4 GB of data to be included in a 30-day trial period for new wireless contracts for people with disabilities. In the decision, the CRTC also said that it considers it appropriate to change the code to require carriers to “to communicate with customers in not only plain language, but also in a way that is clear, timely, and accurate.” The decision said that the commission “considers that clear communication continues to be important and that the increasingly information-saturated wireless marketplace can create challenges for customers in navigating information and making informed decisions about their wireless services.” — With reporting by Anja Karadeglija at akarad@thewirereport.ca and editing by Ahmad Hathout at ahathout@thewirereport.ca

CRTC eliminates locked phones in Canada by December

News | June 15, 2017

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CRTC eliminates locked phones in Canada by December

News | June 15, 2017

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