OTTAWA – The CRTC cleared up confusion around how the new Wireless Code applies to wireless services with tab billing models (tab contracts) in response to queries from Rogers and Telus.
Under a tab contract, the customer obtains a device at a reduced upfront cost and the amount of the device subsidy goes onto the customer’s “tab.” Thereafter, a percentage of the customer’s monthly bill is used to “pay down” their tab.
In its response, the Commission also provided clarification on how the maximum early cancellation fee may be calculated for tab contracts, and what information must be included in a tab contract to ensure that each customer clearly understands whether they are subject to an early cancellation fee, and if so, how it applies. It also explained how cancellation fees are to be calculated in the case of early device upgrades.
The Wireless Code, which comes into effect on December 2, will apply to all new contracts signed as of that date and all existing contracts that are amended, renewed, or extended on or after that date.
