Canada’s ban on activation and plan-change fees came into effect on June 12, 2026. Now, the CRTC has opened a formal proceeding asking Bell, Telus and Rogers to explain why some new or existing fees should not be considered prohibited.
The CRTC is taking a closer look at new telecom fees introduced or maintained by Bell, Telus and Rogers after Canada’s ban on activation and modification fees came into effect.
In a notice published on June 30, 2026, the CRTC opened a show-cause proceeding and is asking the three companies to justify why certain fees do not violate the Telecommunications Act, Telecom Regulatory Policy 2026-43, the Wireless Code and the Internet Code. The regulator is also inviting public interventions before making a final decision.
That means the fees have not yet been ruled illegal. But the CRTC is clearly concerned.
What changed on June 12?
Earlier this year, the CRTC adopted new consumer protections designed to make it easier for Canadians to change or cancel cellphone and Internet plans without being blocked by extra fees.
Under the new definition, an activation or modification fee is any fee charged as a result of activating a new retail telecom plan or modifying an existing one, except for reasonable physical installation fees or fees for additional products or services the customer explicitly chooses to buy. These protections came into effect on June 12, 2026.
In plain English: providers can no longer charge customers simply for activating a plan or changing a plan. But they may still charge for certain optional products, services or physical installations.
That grey zone is now the centre of the fight.
The fees under review
The CRTC says it recently became aware that Bell Canada, Telus Communications and Rogers Communications Canada introduced fees that could violate the new ban. The regulator is now asking the companies to justify why those fees should be allowed.
Bell: $40 device handling fee
According to the CRTC notice, Bell introduced a $40 device handling fee for customers who buy a device with their wireless service.
Bell argues that buying a device is optional, that customers can buy a phone elsewhere, and that the fee is tied to legitimate costs related to providing the device. Bell also confirmed it would continue applying the fee after the new rules came into effect.
Telus: $15 SIM and eSIM fee
Telus is being questioned over a $15 SIM/eSIM fee.
They argues that SIM and eSIM fees are not necessarily activation fees because customers may need a SIM or eSIM for other reasons, such as replacing a damaged SIM or getting one for travel. The company says the fee is meant to recover costs, not discourage customers from changing plans or cancelling service.
Rogers: device setup, shipping and SIM fees
And Rogers is being asked about several fees, including a $40 device setup fee, a $25 shipping fee for devices ordered online, and certain SIM card fees.
Rogers argues that the device setup fee is tied to an optional device purchase through assisted channels such as retail or customer service, and that it does not apply to devices purchased through self-serve channels. Rogers also says its shipping and SIM fees are not activation or modification fees.
Why this matters
The issue is bigger than a $15, $25 or $40 charge.
The real question is whether an activation fee ban can be weakened by renaming fees as device handling, setup, shipping or SIM fees.
If a customer has to pay a fee when activating a new plan, changing a plan, upgrading a device or switching providers, the practical effect can still be the same: the first bill becomes more expensive, and switching becomes less attractive.
The CRTC says it is concerned that the companies may be imposing fees that appear to be prohibited under section 27.04 of the Telecommunications Act and may be contrary to the Wireless Code and Internet Code.
That is why this proceeding matters. It is the first major test of whether the new ban has teeth or whether telecom fees simply return wearing a different costume.
Could Bell, Telus or Rogers face penalties?
Yes, if the CRTC finds that violations occurred.
The notice says companies could face administrative monetary penalties of up to $10 million, or up to $15 million for a repeat violation. Individuals could face penalties of up to $25,000, or up to $50,000 for a repeat violation.
The CRTC also says that, if violations are found, it could order the companies to stop charging prohibited fees within 60 days of the order.
For now, though, this is still a proceeding, not a final decision.
Canadians can submit comments
The CRTC is inviting public interventions from interested parties. Anyone who wants to become part of the proceeding can file an intervention.
The deadline to submit an intervention is July 30, 2026. The companies will then have until August 10, 2026 to reply to the interventions received.
The CRTC also says interested parties can collect and organize comments from others into a single submission, known as a joint supporting intervention.
For consumers, that means real examples matter. Bills, screenshots, chat transcripts and fee names can help show how these charges work in practice.
What should customers watch for?
If you are activating a new mobile or Internet plan, changing your plan, upgrading your device or switching providers, check the full cost before confirming.
Pay close attention to:
- activation fees;
- setup fees;
- device handling fees;
- SIM or eSIM fees;
- shipping fees;
- plan-change fees;
- first-bill charges that were not clearly explained.
It is also useful to note the provider, brand, province, exact fee name, amount, date, sales channel and whether the fee was mandatory or avoidable.
For example, a fee may appear during an online order, in store, through customer service or when upgrading a phone. Those details matter because the companies argue that some of these fees are optional or tied to products rather than telecom service activation.
Be careful with personal information
Before submitting anything to the CRTC, customers should remove sensitive personal information.
The CRTC states that documents filed in a proceeding become part of the public record and are posted as received, including any personal information they contain. That can include names, email addresses, mailing addresses, phone numbers and other details.
Do not submit account numbers, private addresses, full bills or screenshots containing sensitive details unless you are comfortable with that information becoming public.
What this means for consumers
For now, customers should not assume these fees are cancelled or refundable. The CRTC has not made a final ruling yet.
But the proceeding is still important because it shows that the regulator is watching how providers respond to the new ban.
For Canadians, the lesson is simple: the monthly price is not always the full price. One-time fees can change the real cost of a mobile or Internet plan, especially when activating a service, upgrading a device or switching providers.
Before choosing a plan, compare not only the monthly rate, but also the first-bill charges and extra fees that may appear at checkout.
PlanHub helps Canadians compare mobile and Internet plans across providers, provinces and budgets. In a market where fees can shift from one label to another, comparing the full cost matters more than ever.
Bottom line
The CRTC banned activation and plan-change fees to make it easier for Canadians to switch or modify their mobile and Internet services.
Now, only weeks after the ban came into effect, the regulator is asking Bell, Telus and Rogers to explain why certain device, SIM, eSIM, setup and shipping fees should not be considered prohibited.
The final decision has not been made. But the file is now public, official and open to interventions.
If the fee ban can be replaced by renamed charges, consumers need to know. And the CRTC now has a chance to draw the line.
