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June 04, 2013

New Canadian Wireless Regs Could Mean Higher Prices for Smartphones, Consumer-Friendly Changes Coming

A new wireless code of conduct goes into effect on Dec. 2 in Canada – thanks to the work of the Canadian Radio-television and Telecommunications Commission (CRTC).

On one level it may mean consumer-friendly changes on cell phones for new or extended contracts. But it could also mean higher prices for smartphones.

Among the changes in mobile wireless voice and data services are caps on roaming and data charges, and it may mean an end to three-year contracts.

No three-year contracts could lead to higher prices. CBC gives the example of how one provider, Fido, is offering the Samsung Galaxy S4 for $450 on a two-year contract. Rogers is providing the same phone for $199 as part of a three-year contract.

Also, now a consumer who wants to break a contract before it ends typically pays an additional fee. “The new code will require providers to clearly spell out in writing how much of a subsidy is being given, and how much will be deducted from the amount owing for each month of the contract,” the CBC reported.

With contracts becoming similar to other nations, Canadians will be able to better compare themselves to what is offered to consumers in other countries.

Some other changes Canadians will see, according to a report on MobilityTechzone, include: global data roaming fees will be capped at $100 a month. Also, data overages will be capped at $50. Consumer contracts will be in clear language, and consumers will get 15 days to try out a new service. If they don’t like it, there are no penalties when they return the device.

“The new rules should do much to rein in some of the industry's worst excesses, although they won't do much to fix the underlying competitive issues,” the CBC reported. “That problem now falls to the federal government.”

In addition, the Wireless Code “will make it easier for individual and small business customers to obtain and understand the information in their wireless service contracts; establish consumer-friendly business practices for the wireless service industry where necessary; and contribute to a more dynamic wireless market,” the commission said in a statement which introduces the code.




Edited by Rory J. Thompson


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