New CRTC Investigation Could Stop Extra Phone Fees in Canada

Canadians have long paid some of the highest cellphone prices in the developed world, and many customers are used to paying extra fees when signing up for a new phone plan.

Now, Canada’s telecom regulator is taking a closer look at whether some of the country’s largest phone providers are charging fees that are supposed to be banned.

The Canadian Radio-television and Telecommunications Commission (CRTC) has launched a new public consultation into certain fees charged by Bell, Rogers, and TELUS after new consumer protection rules came into effect in June. If the CRTC ultimately finds that these charges violate the law, Canadians could end up paying less when activating a new cellphone plan or switching providers.

Why Are Canada’s Largest Phone Companies Under Scrutiny?

Canada’s phone market is dominated by the “Big Three” national providers: Bell, Rogers, and TELUS. Together, these companies serve the vast majority of mobile phone customers across the country. They also own many of the smaller brands you might recognize, including Fido, Virgin, Koodo, Public, Chatr, and Lucky.

(You can learn all about the different phone providers in Canada in our guide.)

It’s true that Canadians have more providers to choose from than they did a decade ago, particularly as regional carriers like Freedom Mobile and SaskTel have expanded. But – the Big Three continue to hold most of the market. Consumer advocates have argued for years that a lack of competition has contributed to Canada’s high cellphone prices compared to other countries.

The CRTC’s latest consultation focuses on fees charged by Bell, Rogers, and TELUS because the regulator believes some of these charges may not comply with new laws regarding phone activation fees.

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Why Does This Matter for Newcomers?

Choosing a cellphone provider is one of the first practical tasks many newcomers complete after arriving in Canada. A Canadian phone number is often needed to apply for jobs, open bank accounts, communicate with landlords, and register for provincial healthcare coverage.

Newcomers are also among the consumers most likely to pay activation and setup fees because they are typically opening new wireless accounts rather than renewing existing ones.

If the CRTC decides to stop some of the fees currently under review, it could reduce the upfront cost of getting connected in Canada. While the consultation would not affect monthly plan prices directly, it could make it less expensive for newcomers to sign up for their first Canadian cellphone plan or switch providers later if they find a better deal.

Why Is the CRTC Investigating the Issue?

Earlier this year, the CRTC introduced new rules designed to make it easier and less expensive for Canadians to switch Internet and cellphone providers.

As of June 12, telecommunications companies are no longer allowed to charge activation fees, modification fees, or other charges whose main purpose is to discourage customers from changing or cancelling their service plans. The CRTC said these fees created unnecessary barriers that made it harder for Canadians to shop around for better deals.

However, shortly after those rules took effect, the CRTC said it became aware that Bell, Rogers, and TELUS had introduced or continued charging certain fees that may still fall under the prohibited category. Though, these fees were disguised as other types of costs.

The CRTC has now ordered the three companies to explain why the identified charges should not be considered violations of the new laws surrounding phone activation fees.

Which Phone Fees Are Being Reviewed?

According to the consultation documents, the CRTC is examining several different types of possible “activation” charges, including:

• Bell’s $40 device handling fee for customers purchasing a cellphone with a wireless plan.
• TELUS’ $15 fee for physical SIM cards and eSIMs.
• Rogers’ $40 device setup fee, shipping charges for some online device purchases, and certain SIM-related fees.

Each company argues that these charges relate to optional products or services rather than activating a customer’s cellphone plan, but the CRTC has stated that it is unconvinced. The CRTC documents suggest that some of these fees appear to be connected to activating phone services and may therefore be illegal under the new rules.

If the CRTC ultimately determines that the companies have violated the law, it could order them to stop charging the fees. The consultation also raises the possibility of administrative monetary penalties of up to $10 million per company, depending on the outcome of the proceeding.

Why Does This Matter for the Canadian Phone Market?

While Canadian phone prices have become more competitive in recent years, particularly as regional providers have expanded and competition has increased, Canadians still often pay more for phone service than customers in many other countries. Extra charges for activating a plan can make switching providers even more expensive.

The CRTC’s latest consultation is aimed at reducing those costs. If the regulator decides these fees are illegal, consumers will no longer have to pay for those extra charges when signing up for a new phone plan or moving to a different provider.

Can Newcomers Participate in the CRTC Investigation?

Yes, the CRTC is inviting members of the public to submit comments as part of the consultation. Interested individuals can file an intervention until July 30, 2026, by following the instructions on the CRTC website.

The CRTC will review submissions from consumers before deciding whether any of the disputed fees violate Canada’s consumer protection rules.