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PROBLEM 

Canada pays the highest cellphone bills in the developed world, and has the lowest cellphone adoption rate. 

• Heavy cellphone users in Canada pay 56% more than heavy users in the US, average users pay 33% more than their counterparts in the US.

• There is no purpose for a ‘system access fee’ except to confuse consumers.

• Confusing terms of service and sky-high rates have a direct impact on our usage rates.

• Today in Canada, the cellphone adoption rate is 58 cell phones per 100 residents. In the US, 84/100 (and the US is the next lowest country among G7 nations).

SOLUTION 

Bill C-555 makes three substantial changes.

It: 

1. Eliminates the System Access Fee and other misleading charges by making it a term of licensing that cell phone service providers roll all ‘fees’ into their monthly plan rate; 

2. Mandates a ‘fact sheet’ for every cell phone contract that sets out each service being provided and its associated cost; and, 

3. Launches a CRTC inquiry into competition, consumer protection, and choice in telecommunications in Canada. 

Clear pricing encourages price competition between service providers and benefits both the consumer and the industry.  Increased competition means better services are provided more efficiently and reduces barriers to competitiveness, productivity, innovation and growth for SMEs in Canada.