GATINEAU – On Tuesday, the CRTC sent a letter to all parties to its ongoing review of the wireless industry asking what they think of newly announced device financing plans.
Over the past two weeks, both Rogers and Telus have decided to separate the cost of the device from the costs of the service on their bills, to consumers who want that, allowing them to pay for new handsets separately. While Telus has limited such contracts to 24 months, Rogers is now letting customers pay for devices over 36 months, if they like.
“The Wireless Code (the Code) is a mandatory code of conduct for providers of retail mobile wireless voice and data services to individual and small business customers in Canada,” reads the letter.
“Commission staff is aware of a recent practice whereby some wireless service providers (WSPs) are now offering device financing plans to customers separate from the provision of wireless services. Commission staff is seeking information to better understand these device financing plans and how they are offered to customers.”
The 2013 CRTC Wireless Code of Conduct effectively limits contracts wireless companies may offer to customers to two years since the Code says carriers can charge no penalty for cancelling a contract after 24 months. However Rogers, which is allowing the device to be paid for over three years, believes it is on side with the code because it is not charging a cancellation fee, but instead requiring a customer pay in full only for the device (for which no interest is charged) if they choose leave the company before the payment plan ends.
Bell, which has not come to market with a device offer like Telus or Rogers (but has extended its $75/10GB, no data overage charges offer indefinitely) is likely to be on side with the Rogers plans since its opening submission to the wireless review appealed to the CRTC to get rid of the two-year limit.
The letter says the CRTC wants to know (from companies offering device financing or those planning to make that offer), for example:
- What are the various terms offered to customers on the financing plans you offer?
- Can a customer change the terms of their financing plan? If so, explain the conditions under which a customer may do so.
- Can a customer make advance payments on their financing plan? If so, explain the effect that any advance payment can have on the customer’s financing plan, including the duration of the plan and monthly payments.
- Can a customer cancel their financing plan? If so, explain,
- the conditions under which a customer may cancel a financing plan,
- any consequences a customer may face when the financing plan is cancelled, and
- in particular, can a customer avail themselves to a competitive offer from a different WSP before their financing plan concludes? What consequences does that have on the financing plan?
- How are customers informed of the conditions and consequences related to the situations presented in a) through d).
Comments are due July 30th.
