To what extent will the new code of conduct affect our wireless plans?
Sparking immense controversy in the Canadian telecommunications market, the CRTC passed a new policy which required cell phone providers to follow a strict set of rules when providing service for customers. All cellphone service providers must now ensure that wireless contracts are limited to two years and have price caps placed on how much a customer can be charged for fees additional to the user’s existing plan. Since the creation of this proposal, major telecommunications companies have challenged this ruling, which was recently approved in court. (See article here.)
From the perspective of a cell service provider in Canada, this code greatly hinders the operations of the business. By necessitating that all contracts must end by June 3, 2015, without requiring customers to be charge any additional fees, the company loses a large part of revenue that would have been acquired from either the payments from early cancellation fees or the monthly fees that would have been incurred by the customers. Moreover, by capping the amount that can be charged on added fees allows the customer to take advantage of the provider and overuse roaming and data charges knowing that the cost will be fixed. However, from the perspective of a consumer, this new policy helps lower the cost of owning a cellphone, and makes having a phone more practical and affordable. This policy can be debated from both sides of the argument, but ultimately, it’s up to the court to decide who wins this battle.