Telus sacks system access fee
Last Updated: Tuesday, October 27, 2009 | 4:04 PM ET
By Peter Nowak, CBC News
Telus was the first to sack the system access fee on its discount brand when it launched Koodo in 2008. (Adrian Wyld/Canadian Press)Telus has become the first of the big three Canadian wireless companies to drop the hated system access fee — and not replace it with a new charge.
The company announced Tuesday that it was discontinuing its $6.95 system access fee, which it said went toward maintaining and upgrading its network, as well as the 75-cent 911 charge.
Telus's rival Rogers dropped its system access charge in September, but replaced it with a "regulatory recovery fee" ranging between $2.46 and $3.46 depending on region, which the company said will help pay for the cost of complying with various government regulations.
"Nobody likes surprises. We are listening to Canadians, who have told us wireless pricing can be confusing," said Telus chief executive Darren Entwistle said in a statement. "With Telus's Clear Choice plans, the price you see is the price you pay."
Telus subscribers won't see a huge savings though, as the company is also increasing the price of its monthly service plans by $5 to make up for the revenue shortfall. Telus is, however, including its Voicemail 3 service — which lets customers save up to three voice mail messages — with the plans. Rogers also boosted the price of its plans when it dropped the system access fee.
A spokesperson for Rogers said the company did not comment on competitors' offerings.
Existing Telus customers will be able to stay on their existing plans and continue paying the extra fees, or they can switch onto the new offerings.
Competitors about to enter market
Telus's move leaves Bell as the last of the big three national carriers to charge the fee. Bell officials did not return requests for comment.
The system access fee is the subject of an ongoing class-action lawsuit by Regina-based lawyer Tony Merchant. He says Canada's cellphone carriers for years misrepresented the fee as a government or regulatory charge, and is seeking the return of billions of dollars to consumers. The carriers have denied the accusation and the matter is still before the courts.
Telus was also the first of the big three to sack the system access fee in the discount wireless market with the launch of Koodo in early 2008. Rogers and Bell followed suit by discontinuing the fee on their respective discount brands, Fido and Solo.
The moves by Rogers and Telus to simplify fees on their core brands come as new cellphone companies are about to enter the Canadian market. Globalive and Public Mobile are planning to launch services in several cities by the end of the year, followed by DAVE Wireless and Videotron early next year.
None of the new entrants are expected to charge system access or 911 fees.
Globalive's ownership is being reviewed by the Canadian Radio-television and Telecommunications Commission. The regulator will on Thursday rule whether changes are needed to the company's structure before it can launch.
Share Tools
Top News Headlines
- Everest victim's husband says family not seeking government help
- The husband of a Toronto woman who died trying to climb Mt. Everest on Saturday says his family is not seeking government help to cover the cost of bringing his wife's body home. more »
- B.C. premier unhappy with disgraced Mountie's transfer
- B.C. Premier Christy Clark says she is not happy with the RCMP decision to transfer a disgraced Alberta Mountie to the West Coast. more »
- Henrique's OT goal sends Devils into Stanley Cup final
- The New Jersey Devils will vie for a potential fourth Stanley Cup in franchise history after defeating the New York Rangers in six games in the Eastern final, courtesy of rookie Adam Henrique's goal early in overtime. more »
- Employment Insurance review boards to be scrapped
- The federal government is scrapping two review boards used by people appealing decisions made about their employment insurance. more »
Latest Technology & Science News Headlines
- Unloading of docked SpaceX capsule to start Saturday
- The privately bankrolled SpaceX Dragon capsule made a historic arrival at the International Space Station on Friday, and astronauts will begin unloading some of the 544 kilograms of food, water, clothing and other supplies its carrying starting Saturday.
more »
- South Africa, Australia to share world's largest telescope
- South Africa and Australia will jointly host the Square Kilometre Array, which promises to be the world's largest telescope, the international consortium in charge of the project said Friday. more »
- Bonavista, N.L., 'coyote' was really wolf, tests confirm
- Wolves have not been seen in Newfoundland since around 1930 and were believed to have been hunted to extinction on the island, but genetic tests have confirmed that an 82-pound animal shot on the Bonavista Peninsula in March was, in fact, a wolf. more »
- Once-rare argus butterfly thriving thanks to climate change
- Global warming is threatening the existence of many species, such as the giant polar bear, but in the case of Britain's brown argus butterfly, it took a species in trouble and made it thrive. more »
- Yahoo scraps digital magazine designed for iPad
- Yahoo has killed Livestand, a tablet magazine, just six months after its debut on the iPad. more »
Bob McDonald's Blog
Government to shut down unique fresh water research area May. 25, 2012 12:31 PM The Experimental Lakes Area research facility in Northern Ontario is being closed down after 44 years of providing invaluable data to scientists in Canada and internationally, a decision that has stunned researchers and environmental groups.
Quirks & Quarks
- May 26: Before the Lights Go Out May. 25, 2012 4:15 PM A new book, "Before the Lights Go Out: Conquering the Energy Crisis Before It Conquers Us", suggests that the unpredictable, unplanned, ad-hoc way our energy use developed in the past will shape our energy future.
Latest Features
- Aylmer triple stabbing leads to first-degree murder charges
- Everest victim's husband says family not seeking government help
- Reclaiming the dead on Mt. Everest
- Employment Insurance review boards to be scrapped
- Teens share bullying tales in confession booth
- Canada ending 'Buffalo shuffle' for visas, closing consulate
- Brave cat makes epic leap of faith
- What a Greek euro exit could mean for Canada
- Double-lung recipient dances on Ellen show

