Canada’s Cell Phone Laws

It is important for business owners to be aware of Canada’s current cell phone laws and how they can help you save money. This is because, over the last 20 years, cell phone use in businesses has gone from a luxury to a necessity. The Canadian Radio-Television And Telecommunications Commission (CRCT)’s Wireless Code has strict guidelines pertaining to wireless contracts and what service providers can and cannot do. In this post, we will take a closer look at the regulations that can impact businesses the most and what benefits they can provide. We will look at the following 6 regulations:

• After 2 Years,  No Cancellation Fees
• Limits On Roaming Charges
• Unlocking Your Cellphone
• Trial Period
• Limit On Data Overage Charges
• Contract Extensions

Although many people use their cell phones when they are away from the office, most businesses still need a reliable telephone system onsite. If you are looking to upgrade your telephone system equipment, purchase a new telephone system, or need technical support on your existing telephone equipment, contact the experts at Network Telecom.

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The Canadian Radio-Television And Telecommunications Commission (CRCT)’s Cell Phone Laws (Wireless Code)

The following is a summary of consumer rights under the CRCT’s cell phone laws and regulations. As a business owner, knowing your rights could save you hundreds of dollars on cancellation fees, especially if you provide a large number of cellphones to your employees.

1. After 2 Years,  No Cancellation Fees

• Cellphone Law: If you have purchased a non-subsidized device as part of your contract,  a service provider cannot charge you a cancellation fee once 24 months have passed.  Even if you have signed a contract for a longer term than 2 years, you can cancel it with at no charge. If you have a fixed-term contract, and you wish to cancel before 2 years have passed, then the fee must not exceed the lesser of $50 or 10% of the minimum monthly charge for the remaining months up to the 2 years. If you have an indeterminate contract, then your service provider cannot charge you an early cancellation fee.
• Benefit To Business Owner: If you have signed a contract for a longer term than 2 years, you can cancel it at no charge. You won’t be stuck in a long-term contract that isn’t providing the service or the rates that you need. Because you are no longer tied to 3-year contracts, service providers are offering discounted services and cheaper initial pricing to win your loyalty and keep your business.

2. Limits On Roaming Charges

• Cellphone Law:  There is a cap placed on national and international roaming charges. Once national and international data roaming charges reach $100 for any single month, your service provider must suspend them. The customer does have the option to opt out of this cap but they must expressly consent to pay the additional charges. The service provider is also required to clearly notify the customer that their device is roaming in another country. This notification must clearly explain the roaming rates for data services, voice, and text messaging.
• Benefit To Business Owner: If you have employees who need to travel abroad, the savings could be significant depending on the number of employees and how often they travel. This will help you with monthly bill management. Employees will be notified that their phone is roaming and can turn it off accordingly. This cap is also required to be provided at no charge.

3. Unlocking Your Cellphone

• Cellphone Law:  According to the CRTC, if you purchase a locked device as part of your contract, you can get it unlocked after only 90 days from the contract start date or immediately if you paid for it in full at the rate specified by the service provider.
• Benefit To Business Owner: Once your cellphone is unlocked, you are free to look for the best rate for your monthly plan. You are able to switch cellphone companies freely.

4. Trial Period

• Cellphone Law: If your cellphone contract includes an early cancellation fee, you must be offered a trial period of at least 15 calendar days.  The service provider is required to give the customer a reasonable amount of voice, text, and data services to use for the trial period. During the trial, a customer can cancel their service as long as they haven’t exceeded the allotted amounts of usage and return the device in near-new condition with its original packaging.
• Benefit To Business Owner: This trial period can allow you to see whether or not this service meets the needs of your business.
  

  

5. Limit On Data Overage Charges

• Cellphone Law: According to CRTC regulations, extra data charges are to be capped in order to prevent an unexpectedly high bill. Your service provider is required by law to suspend data overage charges once they amount to $50 in a month. If they customer consents to pay additional charges, then the provider can allow for overages exceeding $50.
• Benefit To Business Owner: This will help you to budget your cellphone monthly costs. Employees will not be able to go over either inadvertently or knowingly the maximum amount of $50 per month. The cap must be provided at no charge.

6. Contract Extensions

• Cellphone Law: A service provider may extend a contract with the same conditions and rates on a month-to-month basis when the contract is ending. A customer must be notified at least 90 days before the end of their commitment period as to whether their contract will be automatically extended or not.
• Benefit To Business Owner: This will ensure that you are not unexpectedly disconnected at the end of your commitment period, thus disrupting your own business.

Have a Complaint?

If you have a complaint or you think that your service provider has not followed this code in any area, you can contact the CCTS . They will handle your complaint. You can access their Guide to Making a Complaint here.

For more information on the benefits of the CRTC’s wireless code, visit www.crtc.gc.ca/wirelesscode

Why Choose Network Telecom?

Network Telecom has over 35 years of experience providing a wide range of telephone systems, including market leading brands like Avaya, Nortel, and Panasonic solutions. We proudly provide our customers in Kitchener, Waterloo, Cambridge, and the surrounding areas with the highest quality telecommunication products and services possible. If you are looking to upgrade your office system, contact us today.

Sources
New cellphone contract rules: What you need to know
Your Consumer Rights for Mobile Phones (The Wireless Code of Conduct)
The Advantages of Cellular Phones in Business