The Canadian government is looking to curb nationwide roaming rates for wireless customers, announcing plans to introduce an amendment to the country’s Telecommunications Act designed to cap the amount carriers can charge other operators for accessing their network.
Industry Canada Minister James Moore noted the move follows a recent speech from the Throne committee to reduce mobile costs for consumers and will reduce the cost barrier for new entrants.
“The roaming rates that Canada’s largest wireless companies are charging other domestic providers can be more than 10-times what they charge their own customers,” said Moore. “For too long, Canadian consumers in the wireless sector have been the victims of these high roaming costs. Canadians have been clear that they want their government to take action in the wireless sector to provide more choice, lower prices and better service. With domestic roaming rates on networks capped, Canadian consumers will benefit from more competition in the wireless market.”
Moore added that the move will be in place until the Canadian Radio-television and Television Commission makes a final decision on roaming rates.
In addition to curbing roaming costs, Moore announced that new enforcement measures will be put in place allowing the country’s regulatory bodies to more aggressively fine carriers that violate “established rules such as the Wireless Code and those related to the deployment of spectrum, services to rural areas and tower sharing.”
“The penalties will encourage compliance and allow for more effective remedies should violations occur,” Industry Canada noted. “The Telecommunications Act will also be amended to enhance information sharing between the CRTC and the Competition Bureau so that consumers benefit from greater cooperation.”
Canada’s Wireless Code went into effect earlier this month, stating that all new contract customers will be able to get out of three-year contracts without having to pay a cancellation fee; require carriers to cap data overages at $50 per month and international data roaming charged at $100 per month; allow customers to unlock devices after 90 days of service or immediately if the device has been paid in full; provide a 15-day return window for customers signing up for new service; and receive a contract that “is easy to read and understand.”
The latest moves by Industry Canada come just ahead of plans to auction off 700 MHz spectrum, which the Canadian government is expecting to bring new entrants into the country’s mobile space that is currently dominated by three operators: Rogers, Bell Canada and Telus. Rules have been established for the auction to encourage new entrants by limiting the amount of spectrum established carriers can bid on and requiring current operators to share space on their cell sites with new players. Those rules built on previous policy moves designed to enhance competition across the mobile space. Earlier this month, four of the original 15 companies set to participate in the auction dropped out of the process that is set to begin on Jan. 14.
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