OTTAWA – Calling the wireless contracts from Rogers, Bell and Telus “anti-consumer”, Mobilicity has launched a national push for new laws that would make some of the contract terms offered by wireless carriers illegal.
Such a law already limiting wireless contracts exists in Quebec (although it’s really a larger consumer protection law that doesn’t target cell phones) and a private members’ bill on the same topic is now before the Ontario legislature.
In letters to Industry Minister Tony Clement as well as to the B.C., Alberta and Ontario provincial governments – the other provinces where Mobilicity has spectrum (consumer affairs are a provincial responsibility in Canada) – the new carrier says the established Canadian wireless companies offer both some of the longest such contracts in the world as well as too-high early termination fees.
The company also accuses the big three (Rogers, Bell and Telus) of automatically renewing contracts without telling customers, re-setting contracts when plan changes are made and adding new fees with little notice.
“In our opinion, these anti-consumer tactics do not constitute competition and are certainly not the type of healthy competition that Industry Canada had in mind when it initiated the AWS Spectrum Auction,” reads the Mobilicity letter from its CEO, David Dobbin.
“Mobilicity strongly supports the protection of consumers and would encourage the government to explore the introduction of consumer protective legislation similar to that enforced by the province of Quebec or recently introduced in the province of Ontario. Mobilicity believes that complaints over wireless contracts can be greatly reduced if there are stricter disclosure requirements on costs such as termination penalties; if consumers’ contracts are not automatically renewed; and if carriers cannot unilaterally change the material terms of the contract to the detriment of consumers.”
Unsurprisingly, the incumbents object to the way their business practices and the wireless market has been characterized by Mobilicity.
"Customers are at the centre of our business and we’re continually enhancing our efforts on a number of fronts including our recently introduced Ombudsman’s Office, our handset protection guarantee, data usage alerts and the choice of contract or no-contract options on our mobile phones,” said Rogers Communications president and CEO Nadir Mohamed in an e-mail response to Cartt.ca.
“After spending $4 billion to create a different and competitive environment, it would be very productive if we actually allowed the competitive forces that have been unleashed to work themselves out,” urged Telus’ SVP regulatory and government affairs, Michael Hennessy.
The newcomers, with this and other complaints, are looking for “just a rehash of the kinds of protections that resellers and others looked for in the local exchange business or the long distance business,” he added.
“It’s incumbent on them to create viable business strategies and differentiate themselves in the market rather than hope they can survive under some regulatory umbrella.”
– Greg O’Brien
