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CRTC Warns Bell Over $40 ‘Device Handling’ Charge Ahead of Fee Ban

The warning signals a test of how Canada’s new ban on activation fees will be enforced.

Overview

  • Canada’s telecom regulator told Bell in a letter that the new $40 device handling fee may violate rules that ban activation charges starting June 12.
  • Bell recently dropped an $80 connection fee and introduced the $40 charge for customers who buy a phone through Bell or Virgin Plus.
  • The CRTC argued that a phone is required to deliver wireless service, so a fee tied to providing a device may count as a prohibited activation fee.
  • The commission urged Bell to resolve the issue before the ban takes effect, while Bell says the charge covers fulfillment costs and complies with the rules.
  • For customers, the charge adds cost when purchasing a handset from the carrier, and the outcome could shape what extra fees wireless buyers face under the new policy.