Ottawa cracks down on wireless providers over roaming charges

Keeping a promise during Speech from the Throne Last October, the Harper government announced plans to tighten regulations on domestic roaming rates to make Canadian wireless services more consumer-friendly.

“The roaming rates that Canada’s largest wireless companies charge other domestic providers can be more than 10 times higher than what they charge their own customers. For too long, Canadian wireless consumers have been the victims of these high roaming costs,” said Industry Minister James Moore in the statement“Canadians have made it clear they want their government to take action in the wireless sector to deliver more choice, lower prices and better service. With domestic roaming rates on capped networks, Canadian consumers will benefit from more competition in the wireless market.”

Moore confirmed plans to change Telecommunications Act to limit the fees that incumbent wireless carriers can charge smaller, regional players when their customers are forced to roam outside their own networks. Under the proposed rules, domestic carriers will no longer be able to charge other companies more than they charge their own customers for voice, data and text messaging services on mobile devices. The announcement follows a decision by the government announcement last week that it is launching an investigation into the way national operators charge smaller players for wholesale roaming access, and a 2012 ruling that forced national network-owning operators to allow everyone to access wholesale roaming.

These changes prepare the ground for a final, permanent solution imposed by Canadian Radio-television and Telecommunications CommissionThe federal regulator is currently investigating the issue of national roaming charges and is expected to make a final decision in 2014. The government has repeatedly argued that high national or wholesale roaming charges limit competition by driving smaller operators into a corner.

Ottawa will also amend the Telecommunications Act and Radiocommunications Act give the CRTC the power to impose fines on carriers that violate regulations Wireless code – introduced earlier this month – and related regulations governing spectrum deployment, tower sharing and rural services. The Telecommunications Act will be updated to allow for so-called administrative monetary penalties, or AMPs, in cases where operators violate regulatory decisions, including those related to the Wireless Code. The Radio Communications Act will be similarly amended to allow AMPs for licensing and certification violations.

“Our government is committed to ensuring that companies play by the rules for the good of all consumers. Canadian families deserve nothing less,” Moore said. “These new enforcement measures will protect the interests of consumers in the wireless sector.”

Carmi Levy is an independent technology analyst and journalist based in London, Ont. The opinions expressed are his own. [email protected]