GATINEAU – Freedom Mobile has called on the CRTC to “take the bold step and completely do away with unlocking fees altogether and that unlock codes be provided by carriers free of charge on request.”
The upstart operator owned by Shaw Communications made the recommendation on Wednesday during its opening remarks to the Commission’s three-year review of the Wireless Code of Conduct.
The company added that there is no reason domestic carriers can’t offer unlocked devices at the point of sale. After consulting several large handset suppliers, “they have indicated that they would be happy to sell unlocked phones,” said Bob Boron, senior VP of regulatory at Freedom. In fact, Freedom believes the Commission should direct carriers to stop ordering handsets that are locked.
While the current rules requires wireless operators to clearly disclose the unlocking fee, carriers are free to set the rate. Most charge consumers $50 but unlocking rates are as high as $75. Commissioners have been asking carriers and consumer groups pointed questions about the fees during this week's hearing, wondering why they are necessary and why they are sometimes waived for some customers.
Not only would a ban on unlocking fees allow Canadians to install foreign SIM cards – a way to avoid high roaming charges – consumers would also benefit from more rigorous competition in the market, says the company.
“If the Commission amends the code to prohibit unlocking fees and to mandate that all future devices be sold unlocked, this will enhance market dynamism, foment customer choice, and discipline the market in a very considerable way,” said Boron. “This one amendment will undoubtedly enhance the code’s effectiveness in the short term and in the longer run.”
