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CRTC Unveils New Wireless Code To Protect Canadian Customers

FuzzNugget writes "The CRTC has unveiled a code of conduct that brings many positive changes for Canadian wireless customers, most notably:
1.) Carriers must provide the option to unlock a cell phone after 3 months for subsidized phones within the contract period, or immediately if the device was purchased outright.
2.) Contracts are now capped at two years, and cancellation fees are limited to the amount of the subsidy.
3.) Carriers can no longer charge outrageous data overage and international roaming charges. Without explicit consent from the a customer, such charges are capped at $50 and $100 per month, respectively."

45 of 230 comments (clear)

  1. A nice lead... by Pyrotech7 · · Score: 5, Insightful

    I hope the U.S. follows.

    1. Re:A nice lead... by h4rr4r · · Score: 4, Interesting

      I doubt that.

      I just wish VZW had some idea of what country I am in. When I go to the US Falls I have to turn off the phone or put it in airplane mode as it assumes I am in Canada. I get it, it is close and it might connect to the wrong tower. As a customer I do not care. I paid for nationwide Data and I wish I could use it. Niagara Falls State Park is in the USA and I should not have to pay extra for data in it.

    2. Re:A nice lead... by cob666 · · Score: 2

      Unfortunately, because VZW is CDMA all the roaming information is in the PRL data, both voice AND data. So, if you disable data roaming you will ONLY get data in your home area. I've had similar issues in Maine where I was billed for data roaming in Canada even though I was in the US and my phone clearly indicated that it was on the Verizon network. Every time this has happened I called customer support, explained the situation and they removed the charges.

      --
      Do what thou wilt shall be the whole of the Law - Aleister Crowley
    3. Re:A nice lead... by bondsbw · · Score: 2

      I think I would like the changes overall, but any regulation has trickle-down effects. For instance, capping the price of certain services may be realized by capping the ability to use the service, or removing the service altogether if it is no longer profitable.

      And of course, FTA:

      There's a good chance, however, that Canadians could see the price they pay for their cellphones up front rise as a consequence of their newly won long-term freedom.

      --
      All my liberal friends think I'm a conservative, all my conservative friends think I'm a liberal.
    4. Re:A nice lead... by TemporalBeing · · Score: 2

      I think I would like the changes overall, but any regulation has trickle-down effects. For instance, capping the price of certain services may be realized by capping the ability to use the service, or removing the service altogether if it is no longer profitable.

      That depends on whether it is something work keeping. If it isn't, then it wasn't worth it at the old price either. Honestly, data plans are being charged at way too high an amount, and can be very unsuspecting so yes - something needs to be done in terms of regulation, USA included.

      And of course, FTA:

      There's a good chance, however, that Canadians could see the price they pay for their cellphones up front rise as a consequence of their newly won long-term freedom.

      That wouldn't be a bad thing really. People have too low a value on their phones, so they don't treat them well, then wonder why they're breaking - which in turn drives up the cost for the carriers. Make people realize the real value of the device.

      Honestly, I wouldn't mind if carriers were prohibited from subsidizing devices entirely, but that won't happen. This is certainly one area where Europe has a little better model than the USA/Canada, at least in this one respect.

      --
      Truth is like the sun. You can shut it out for a time, but it ain't goin' away. - Elvis Presley (source: imdb.com)
    5. Re:A nice lead... by tlhIngan · · Score: 2

      I hope the U.S. follows.

      In the US, it seems to be happening automatically.

      After all, you don't have 3-year contracts In the US for a long time - it's always been two years.

      And lately even ETF fees have been going down across the board - I think it was Verizon who wanted to charge it all the way and they got smacked back rather badly, so now everyone uses a pro-rated system.

      Cellphone unlocking - OK that's relatively new, but the ones where it matters seem to be coming around to doing it willingly as well.

      It mostly came about because us Canadians got sick and jealous of you guys in the US with your freer plans.

    6. Re:A nice lead... by losfromla · · Score: 2

      really? Which part? The part where the less fortunate are also able to get reasonable health care? The part where they don't squander huge amounts of their resources on an unwinnable and moronic war on drugs? etc... Just curious as to what you meant exactly with such an ambiguous statement.

      --
      Only I can judge you.
    7. Re:A nice lead... by rueger · · Score: 4, Informative

      But it can do nothing to force a business to support or continue an unprofitable venture.

      Trust me, These piddly little changes will still allow Telus, Bell, and Rogers to charge overly high prices, buy up or stifle competition, and generally make obscenely large profits. There never has been, and likely never will be, an unprofitable business in Canadian telecoms, as long as you belong to the Big Three monopolists.

    8. Re:A nice lead... by losfromla · · Score: 2

      90% hidden job market

      Yeah, I was watching an article where 1/100 houses in certain provinces of Canada are grow-ops. Pays quite well.

      100% networking - Do you think the fall of RIM and Nortel is a coincidence???

      You say this like its a bad thing

      Racism - Oh, not open, not so obvious, but it is there, hidden in their "communities"...

      hmm, what are the incarceration rates for blacks and other minorities in the USA when compared to those for whites? No, it's not because they commit more crimes, it's because they are incarcerated at higher rates. In a sense it's not racism, it's more classism as poor whites suffer almost as much as minorities. However, minorities are poor due to long-standing socioeconomic disadvantages.

      Health Care? Really? Man, even Zimbabwe's health care is better and less expensive. Unless you happen to have a nice government job, paid with tax money, and covering EVERYTHING (something impossible to have in any private company), once you have anything more serious than flu, you will see the differences.

      Utter bullshit. I've seen documentaries and sincere testimonials from people including here on slashdot noting how much better on average Canadian health care is than that in the US. The only ones better off in the US are those of us able to be sponsored into luxurious health care due to being wage slaves to a large corporate entity which needs degreed workers. The ones who complain about Canada's health care system are probably shills for the US health care industry, or the semi-rich in Canada who can't believe they have to stand in line behind the unwashed masses.

      Public services? Again, don't make me laugh, do you know the only one big city in North America that DOES NOT have train/subway connection between its main airport and the downtown? (let me help you, Toronto)

      You picked on the wrong person to come at with your fibs pal, you didn't read my nick? losfromla, LA, Los Angeles, get it stupid? Does LAX ring a bell with you Mr World Traveler?

      Garbage collectors.....Do you know of any other country of the world where you need to be at least a senator or relative in order to land a garbage collector job!!!
      perhaps their garbage collector jobs are like our Teamster jobs? $120K per year for a high school dropout with some 20 years experience at Teamster (ass scratching being the main skill developed).

      Taxes......with one single stroke Canada manage to increase the inflation with 5%, by charging all the goods from 8 to 13%. Amazing. I just wonder why the interest did not jump with 5% too....

      That's nothing and also amateurish. Our masters simply create more money, thus devaluing our existing and future earned dollars with most of us apparently not caring since it's nothing so obvious as a 50% increase in the tax rate. Too obvious, they need a "Federal Reserve" so they can do fancy stuff like our government.

      Taxes....again.....if you happen to earn more than 70k the big axe will cut at least two legs or arms. In US it is about 250k. Wow, amazing, ain't so?

      The only thing wrong with our tax rates in the US is that they don't take increasingly larger chunks of higher earning corporations and executives. My feeling is that anyone making over a million in wages, stock options, benefits, etc should be taxed at a 90% tax rate, maybe up to 95%. The problem you see is that we have a strong wealth redistribution system with our "capitalistic" economy, wealth redistribution from the poor to the rich.

      --
      Only I can judge you.
  2. Devistating blow by EmperorOfCanada · · Score: 2

    I am going to predict that this is going to be a devastating blow to their profits. Back when BlockBuster instituted "No Late Fees" I knew they were doomed. Basically they were profiting on bad luck and stupidity of which people are never short. So then BB had to profit from providing a quality service. Doomed!

    How many people are suckered into overpaying in all kinds of creative ways. The locked phone for instance must keep many people from switching carriers. So I don't see the big three going bankrupt but I do see their profits taking a bigger hit than even they see coming in that they have probably fooled themselves into thinking that they are making profits in ways other than taking advantage of bad luck and stupidity.

    1. Re:Devistating blow by MarioMax · · Score: 2

      Funny thing with BB late fees, you actually had until 2PM, not Noon, to get your movie checked in. I know this because I used to work for BB from 2001-2002; the 2PM deadline was to allow the clerks time to get the movies checked in, and even then the late fee could be overridden by the clerk.

      Then again, considering that it was a minimum wage job, most clerks didn't care (I was one of the few who actually gave a rats ass). Its hard to give quality service when the majority of your staff works minimum wage. As the saying goes, you get what you pay for, and employees who care is no exception.

      There are other reasons why BB is doomed; profits from late fees is only one facet of a much larger problem.

    2. Re:Devistating blow by MrEricSir · · Score: 2

      Back when BlockBuster instituted "No Late Fees" I knew they were doomed. Basically they were profiting on bad luck and stupidity of which people are never short. So then BB had to profit from providing a quality service. Doomed!

      That move was a hail mary for Blockbuster, they'd already lost to Netflix & Friends at that point. Besides, it wasn't really a "no late fee" policy so much as a "we'll eventually charge the full cost of the movie to your card if you don't return it" policy. Not the same thing.

      --
      There's no -1 for "I don't get it."
  3. Re:About Time by Anonymous Coward · · Score: 3, Funny

    Or Aboot Time (?)

  4. Reduced Expectations by Sponge+Bath · · Score: 4, Informative

    Rampant corporate misbehavior has so desensitized the public that weak half measures are applauded. The chance your carrier will break into your house, light your dog on fire and crap on your carpet has been somewhat reduced. Rejoice!

    1. Re:Reduced Expectations by ductonius · · Score: 4, Insightful

      Perfect is the enemy of good. If you burn "good" in the pursuit of "perfect" not only will you never have "perfect", you'll never have "good".

      Also, baby steps, my friend. Baby steps.

  5. Re:2 year contract by camperdave · · Score: 2

    My Handspring Visor PDA lasted just shy of ten years. I expect my Android phone/PDA to do the same.

    --
    When our name is on the back of your car, we're behind you all the way!
  6. Re:Point 3 will be fiercely faught. by beefoot · · Score: 2

    Currently though the telco in Brazil is likely charging Rogers/Bell/Telus $1.50 for the $50G of data and Rogers/Bell/Telus turns around to charge the customer $50,000. Joking aside, the code does not say the telco couldn't cut you off after you incur so much roaming fees.

  7. Get a Canadian phone! by erroneus · · Score: 2

    With the way things are now in the US, it might be a good idea to buy Canadian phone service and "roam" in the US.

    Actually, with the actions of T-Mobile lately, it's almost as if they were anticipating this. There are no cancellation fees... no more contracts. If you decide to stop being a T-Mobile customer, you just have to pay for the phone you bought through them if you haven't already.

    The roaming and overage charge caps are new though.

    1. Re:Get a Canadian phone! by Solandri · · Score: 2

      With the way things are now in the US, it might be a good idea to buy Canadian phone service and "roam" in the US.

      I worked in Canada from 2007-2010. It was actually cheaper for me to add Canada roaming to my U.S. plan and pay $3/mo + 20 cents/min roaming, than to get a Canadian cell phone exclusively for use in Canada (i.e. no U.S. roaming). I would've had to have gotten a 1000 min/mo plan for the per-minute rate on the Canadian plan to be cheaper. Their wireless service was ridiculously expensive. No idea if it's improved in the last 3 years.

  8. Re:2 year contract by Nos. · · Score: 2

    I don't expect providers to hope that I'll stay with them long enough to pay for a subsidized device. Instead, offer me a discount for staying with you after I've paid for the device, or if I bring my own. Otherwise, why not just get a new device every 2-3 years.

  9. Re:Point 3 will be fiercely faught. by petermgreen · · Score: 3, Insightful

    If "brazil telecom" charges exhorbitant roaming fees to the canadian carriers and provides no mechanism to cut users off when they reach their roaming limit then the canadian carriers need to either negotiate a better roaming deal with "brazil telecom", or stop enabling roaming to "brazil telecom" by default.

    --
    note: i'm known as plugwash most places but i screwd up registering that here somehow in the past and now can't register
  10. Re:Point 3 will be fiercely faught. by Nos. · · Score: 2

    They'll just shut off your data roaming once you hit the cap.

  11. Unlocked phone? by Sandman1971 · · Score: 3, Interesting

    This may sound like a stupid question to some...

    When going to Europe, I would get a burner phone as it was cheaper than paying roaming/data fees. Since they must now unlock the phone (in my case, an iPhone), does that mean that when I now go to Europe all I need to do is buy a SIM card/service from a local cell provider and stick it in my iPhone and it will work?

    --
    It's better to burn out than to fade away
    1. Re:Unlocked phone? by chriscappuccio · · Score: 3, Informative

      yes as long as the phone covers the frequencies on the network you wish to roam on, which is why "QUAD BAND GSM" used to be popular, although there are more bands now with 4G LTE and so on

  12. Re:Point 3 will be fiercely faught. by Jorkapp · · Score: 2

    According to TFA on this point:

    2. Cap on data roaming charges
    i. A service provider must suspend national and international data roaming charges once they reach $100 within a single monthly billing cycle, unless the customer expressly consents to pay additional charges.
    ii. A service provider must provide this cap at no charge.

    I would hazard a guess that in this case, most telco's would suspend service once you've reached $100 in charges. Either that, or your consent to pay more will be found as part of the conditions in your next contract.

    --
    Frink: Nice try floyd, but you were designed for scrubbing, and scrubbing is what you shall do.
  13. Still sucks to own a phone in Canada by dittbub · · Score: 2

    A lot of Americans are complaining about their American telecom service. But aren't American monthly phone and data plans far far better than Canada?!

    1. Re:Still sucks to own a phone in Canada by Capt.DrumkenBum · · Score: 2

      Yes!
      Your options are Bell/Telus or Rogers/Fido
      Or one of the small carriers who might go out of business at any moment.
      Lastly, SaskTel, in some areas, but not where I live.

      --
      If I were God, wouldn't I protect my churches from acts of me?
    2. Re:Still sucks to own a phone in Canada by stymy · · Score: 2

      I get unlimited talk, text and data for $40 per month from Wind. That doesn't include the phone, but you can buy a decent one for $150-300 nowadays. And it's nationwide. Granted, Wind doesn't have coverage outside the main cities, but that's all I need. How much does that cost in the US?

    3. Re:Still sucks to own a phone in Canada by beckett · · Score: 4, Informative

      Yes.

      Until relatively recently, 3 large wireless companies completely dominated the market. there are 3rd party offerings in urban areas that have largely been crippled by regulation favouring the large incumbents. Mobilicity (now telus), Wind, and Public Mobile recently Withdrew from their own lobbying organization claiming they were also in the pocket of the big 3.

      “It has been evident for quite some time that, rather than being a true industry association which represents the views of all players regardless of size, the CWTA has instead largely been an advocate for Rogers, TELUS and Bell, and often directly contrary to the interests of new entrant wireless carriers” said Bob Boron, General Counsel and Senior Vice-President, Legal & Regulatory Affairs for Public Mobile.

      The CEOs of the big 3 mobile companies tell their shareholders proudly that they consistently have the highest revenue per customer in the world. This is not in dispute. However, when pressed to justify such high priced plans, they use the same hackneyed mantras of: sparse geographic distribution, threat of netflix and streaming services, and supposed customer satisfaction, which are largely corporate marketing spin repeated year after year until it's true.

      Recently, all 3 new entrants in the urban wireless market became up for sale, and Telus is intending to buy Mobilicity, and Rogers is attempting to purchase the spectrum originally allocated by the CRTC to new entrants to increase market competition.

      Canadian wireless service has less choice, higher prices, offering fewer services and typically lower bandwidth caps, thanks to collusion from the large telcos. It's a caricature of the US market.

  14. Re:Point 3 will be fiercely faught. by Impy+the+Impiuos+Imp · · Score: 3, Informative

    There is a cap except if you agree to a higher charge. This just stops them from automatically charging you outrageous fees based on fine print rather than explicit consent.

    In your Brazil example, you'd have a teeny cap, then a window would pop up, "From this point on, Brazil charges $700/Gigabyte. Do you accept?"

    Dirty Harry: "Well, do ya...punk?"

    --
    (-1: Post disagrees with my already-settled worldview) is not a valid mod option.
  15. Not retroactive by compro01 · · Score: 2

    The CRTC has opted to not make this retroactive to existing contracts, so if you're currently on a contract, you're still screwed until it ends, and you've got to wait out the entire preexisting term and can't use the new 2 year cutout.

    --
    upon the advice of my lawyer, i have no sig at this time
  16. Re:About Time by Virtucon · · Score: 2

    Or Aboot Time (?)

    -Eh?

    --
    Harrison's Postulate - "For every action there is an equal and opposite criticism"
  17. Re:About Time by Capt.DrumkenBum · · Score: 4, Informative

    Can we please kill this stupid joke?
    I was born and raised in Canada. I am a proud Canadian through and through. I have never heard a Canadian pronounce aboot instead of about. I have travelled coast to coast, and have never heard it. Ever.
    Sorry, just needed to get that off my chest.

    --
    If I were God, wouldn't I protect my churches from acts of me?
  18. Re:If only the USA wasn't bought by corps by aristotle-dude · · Score: 2

    Canada is way more fucked on the telecom regulatory/monopoly end than the US will ever be...

    Fascinating. Perhaps you could expand on that a bit? Verizon had a "special" 700Mhz spectrum LTE that is incompatible with AT&T and Canadian 700Mhz LTE whereas in Canada, the CDMA carriers all switched to HSPA+ back in late 2009 rather than waiting for a CDMA compatible iPhone. So even back in 2009, Canadians could get an iPhone or other HSPA+ smartphone on a choice of several carriers whereas Verizon customers had to have a special CDMA version and then they managed to screw up LTE with compatiblity by having LTE handsets that used CDMA for voice.

    --
    Jesus was a compassionate social conservative who called individuals to sin no more.
  19. Re:2 year contract by wonkey_monkey · · Score: 4, Insightful

    Why do you assume everyone always needs more functionality?

    --
    systemd is Roko's Basilisk.
  20. Re:About Time by PhotoJim · · Score: 2

    To some American ears, our "about" sounds like "aboot" but to my ear, some of their "abouts" sound like "abauwt".

  21. Re:Good aim, misses the target by CCarrot · · Score: 2

    2.) Contracts are now capped at two years, and cancellation fees are limited to the amount of the subsidy.

    Bell, Telus and Rogers announced that you can now get the iPhone 5S and the Galaxy S5 for $300 on two years, or $10000 outright. That's a subsidy of $9700.
    You have the option to cancel anytime, provided that you refund Bell, Telus or Rogers that $9700 subsidy they were so kind to give you in the first place.

    They did cover off this dodge, at least:

    G->2.->ii) When calculating the early cancellation fee,
            a) the value of the device subsidy is the retail price of the device minus the amount that the customer paid for the device when the contract was agreed to; and
            b) the retail price of the device is the lesser of the manufacturer’s suggested retail price or the price set for the device when it is purchased from the service provider without a contract.

    --
    "I love animals! Some are cute, others are tasty, what's not to like?" - Betsy Schroeder, Jeopardy contestant
  22. Re:About Time by PKFC · · Score: 2

    Apparently my "sorry" is where an accent is more apparent for some Americans I know. And it's not just because they don't know the word :P

  23. 'Code of Conduct' != Law... by CCarrot · · Score: 2

    I can't see where it says that the carriers have to comply with this code under penalty of law...am I missing something?

    I can definitely see that being able to claim that your company complies with the Code would be a great advertising feature, but what's to stop them from saying "that's nice" and continuing on with business as usual?

    As per the wikipedia article on the CRTC:

    Regulation of telephone service

    The commission currently has some jurisdiction over the provision of local landline telephone service in Canada. This is largely limited to the major incumbent carriers, such as Bell Canada and Telus, for traditional landline service (but not Voice over Internet Protocol (VoIP)). It has begun the gradual deregulation of such services where, in the commission's opinion, a sufficient level of competition exists.[11]

    The CRTC is sometimes blamed for the current state of the mobile phone industry in Canada, in which there are only three national mobile network operators – Bell Mobility, Telus Mobility, and Rogers Wireless – as well as a handful of MVNOs operating on these networks. In fact, the commission has very little to do with the regulation of mobile phone service, outside of "undue preference" issues (for example, a carrier offering a superior rate or service to some subscribers and not others without a good reason). It does not regulate service rates, service quality, or other business practices, and commission approval is not necessary for wireless provider sales or mergers as in the broadcasting industry.[12] Moreover, it does not deal with the availability of spectrum for mobile phone service, which is part of the Industry Canada mandate, nor the maintenance of competition, which is largely the responsibility of The Competition Bureau.

    So...they're expanding their mandate?

    Hmm...interesting times.

    --
    "I love animals! Some are cute, others are tasty, what's not to like?" - Betsy Schroeder, Jeopardy contestant
    1. Re:'Code of Conduct' != Law... by rueger · · Score: 2

      I can't see where it says that the carriers have to comply with this code under penalty of law...am I missing something?

      Too lazy to actually check, but it may be yet another semi-voluntary thing. At a guess I'd say that this new set of rules was pretty much developed within, and then handed to the CRTC by the Big Three telcos.

      As you noted, the CRTC really doesn't regulate mobile phones. In fact they hardly regulate anything any longer, what with years of neo-liberal Harper government, and a Prime Minister's Office that will happily jump in and force them to change anything that they corporate buddies don't like.

  24. Re:Didn't go far enough with prepaid cards... by vux984 · · Score: 2

    The current situation is better. If you buy a $100 prepaid, the minutes last a year; even if you don't touch the phone. If you are a super light user / emergency user $100 year isn't too bad. Works out to around $8/month. If you aren't using more than $100 in minutes a year you only even have to think about it once a year.

  25. Re:If only the USA wasn't bought by corps by Phrogman · · Score: 3, Insightful

    The Canadian government seems to hold near-monopolies in very high favour. The result is always that the customer gets screwed completely. The Telephone industry here is a great example.

    --
    "The first time I got drunk, I got married. The second time I bought a chimpanzee, after that I stayed sober" Arian Seid
  26. Re:2 year contract by Xeno+man · · Score: 4, Insightful

    HA HA HA HA HA HA HA! "I never said throw it away." You may as well have.

    You mock his outdated hardware, then suggest he give it to someone else? So you can mock them for their outdated hardware? It's not good enough for him but it's good enough for someone else? As long as it does what he needs it to do, why does he need to upgrade?

  27. Re: 2 year contract by ceoyoyo · · Score: 2

    You know Koodoo is the alias Telus set up so people they'd screwed over under the Telus name would still do business with them, right?

  28. Re:About Time by halcyon1234 · · Score: 2

    Can we please kill this stupid joke? I was born and raised in Canada. I am a proud Canadian through and through. I have never heard a Canadian pronounce aboot instead of about. I have travelled coast to coast, and have never heard it. Ever.

    Damn fucking straight! It's time we destroy these stupid stereotypes people have about use Canadians...

    Sorry...

    Goddamn it...