Telus $15 SIM card fee could be against new CRTC rules
Telus’ SIM and eSIM fees are under scrutiny amid concerns that they may conflict with new rules set by the Canadian Radio-television and Telecommunications Commission (CRTC).
The CRTC’s new rules come into effect on June 12, prohibiting companies like Telus from charging customers fees when activating, modifying, or cancelling phone plans.
The changes to the Consumer Protections Action Plan are intended to make it easier for Canadians to manage their plans and take advantage of better offers without worrying about unexpected costs.
However, according to a Telus internal document dated June 8, the company will charge customers a mandatory one-time $15 fee for a SIM card effective Thursday. The document notes that the charge is not an administrative fee, but instead covers associated costs, such as manufacturing, licensing, packaging, and shipping.
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Telus states that it will charge a mandatory $15 purchase for SIM cards and eSIMs for all new activations except for online purchases. Previously, the SIM card or eSIM fees were bundled into Telus’s $80 connection fee for in-store purchases.
With those fees banned on Friday, the company will instead charge SIM-related costs separately. This will also apply to eSIMs, with the company explaining that the charge will cover the cost of ensuring digital security and providing technical support. For new activations, the charge will appear as an “add-on” on customers’ first bill.
In an email to Daily Hive, Telus reiterates its position, stating that a SIM card or eSIM “has always been a physical or digital product for purchase, rather than an administrative fee.”
“Customers have always been able to purchase a SIM card or eSIM on its own or as part of a plan, and our approach remains unchanged,” states a company representative. “We will comply with the CRTC’s decision and will remove the Connection Fee by the effective date.”
But the CRTC sees the situation differently.
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On Tuesday, Scott Hutton, VP of consumer, analytics and strategy at CRTC, published a letter to Telus addressing the $15 charge, noting that the Telecommunications Act prohibits activation, modification, and cancellation fees that create barriers for consumers looking to switch cellphone or internet plans.
“A SIM card or eSIM is required for the delivery of the wireless service customers are purchasing,” Hutton wrote. “It would not appear that the SIM purchase fee falls under the exemption considered by the Commission for optional services and products.”
He added that a fee associated with providing a SIM card or eSIM “may be considered to be an activation fee” that’s prohibited under the new rules.
“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,” he wrote.
In May, the CRTC also issued a similar warning to Bell after the company eliminated its $80 connection fee, instead charging customers a one-time $40 handling charge when purchasing a new device.