Bell Canada CEO and president Mirko Bibic gives remarks at the BCE annual general meeting in Montreal on Thursday.Christopher Katsarov/The Canadian Press
The country’s telecom regulator has warned that BCE Inc.’s BCE-T Bell Canada’s device-handling fee, introduced in recent days, may not be allowed under its new policy, which bans telecoms from charging fees related to switching and activation.
In recent days, Bell has started charging a one-time $40 device-handling fee for customers buying mobile devices, according to its website. In a statement, Bell said it introduced the charge to cover fulfillment costs, and that it applies only to the “optional” purchase of a device, not when customers bring their own phone.
However, this fee “may be considered to be an activation fee that is prohibited” under the Canadian Radio-television and Telecommunications Commission’s new regulatory policy, vice-president Scott Hutton told Bell in a letter sent to the company Thursday.
The policy, which was introduced in mid-March and comes into effect on June 12, bans telecom companies from charging fees that would discourage customers from switching between providers, including activation fees, which had risen in some cases to $80.
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That regulatory policy recognized that some fees related to optional services or products agreed to by customers “warranted an exemption from the prohibition because there were direct costs association with their provision.”
This means telecoms are allowed to charge fees for “additional equipment that is not required for the delivery of the telecommunications service to the customer’s premises,” according to the letter.
However, Mr. Hutton said it “would not appear” that its new device-handling charge falls under the exemption, given that a phone is a device that is “required for the delivery of the wireless service customers are purchasing.”
“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,” Mr. Hutton wrote.
Bell spokesperson Luc Levasseur said the company is reviewing the CRTC’s letter.