System access fee

The System Access Fee is a highly controversial non-governmental surcharge imposed by most Canadian telephone companies on their customers' monthly bills [http://www.cbc.ca/consumers/market/files/services/cellphones/accessfee.html CBC Marketplace: Cellphone Secrets ] ] . Although it is normally charged for wireless services, Rogers Communications also charges its home phone customers a System Access Fee.

It normally amounts to $6.95/month (although Bell Mobility charges a System Access Fee of $8.95/month [http://www.bell.ca/shopping/PrsShpWls_RtpDetails.page?wlcs_catalog_category_id=AllInOneRatePlans Rate plans- bell.ca ] ] and the System Access Fee on Rogers Home Phone Services is $5.95/month [http://www.thestar.com/Business/article/296938 TheStar.com | Business | Rogers bumps up phone fees ] ] ). For example, if a wireless plan has been advertised at $20/month, the customer subscribing to it would actually be paying an unadvertised rate of at least $26.95/month, excluding other fees and government taxes.

Criticism

The Canadian Government has required Canadian cellular carriers to make it clear that the SAF is not required for any regulatory or government purpose. As a result the carriers claim that the system access fee covers network operation and maintenance costs. Some critics have argued that the SAF results in much price gouging and should simply be added to the advertised monthly fee instead of being a separate entity; However, in doing so, more customers may avoid going for the 3 year contracts.

Class Action Lawsuit

In 2006 a class action lawsuit was brought against the major carriers with respect to the System Access Fee. After an initial rejection, it was certified as class action on September 7th 2007 in the province of Saskatchewan. Lawsuits in other provinces, such as British Columbia are also pending [http://www.merchantlaw.com/cellular.html Cellular Class Action ] ] .

References