The Canadian Radio-television and Telecommunications Commission (CRTC) has officially abolished activation and cancellation fees for cellular and internet plans. This decision, announced on a Thursday, aims to enhance competition in the telecommunications market by eliminating hidden fees.
Key Details of the Decision
The new regulations will take effect on June 12, 2025, and primarily affect individual customers of major service providers in Canada. Previously, activation and cancellation fees ranged from $30 to $80, which discouraged consumers from switching providers for better deals.
Background of the Decision
The CRTC’s decision follows recent amendments to the Telecommunications Act, finalized on October 30, 2025. The legislative changes stemmed from a public consultation initiated in November 2024, spurred by rising activation fees from Rogers that drew significant public backlash.
Impact and Limitations
- Only individual customers of large telecommunications providers will benefit from this measure.
- Businesses and customers of regional providers are currently excluded from these regulations.
- Customers with subsidized phones will still face penalties for device repayment.
CRTC Chair Vicky Eatrides stated, “Consumers will be able to choose a better plan without incurring extra fees.” Despite these beneficial changes, the CRTC has acknowledged it cannot ensure providers won’t subtly raise monthly rates to offset the eliminated fees.
Future Goals
The CRTC plans to monitor market practices closely and aims to facilitate easier comparisons of service plans. Additionally, the organization intends to consolidate consumer protection codes into a single, comprehensive document.
For further insights on this development, feel free to contact us at El-Balad.
