Bell ordered to unlock cellphones after CRTC says practice against Wireless Code

Bell Canada was ordered late last month to unlock all of its customers’ cellphones after the federal communications agency said a change to the company’s policies violated the Wireless Code.

The policy change involved locking phones from competing networks for 60 days to address what Bell said was an increase in crime at the point of sale.

In a letter to Bell’s lawyer Philippe Gauvin made public by the Canadian Radio-television and Telecommunications Commission and dated Nov. 28, secretary general and executive vice-president Marc Morin said the company had “not demonstrated that this practice is effective nor that it has exhausted alternative solutions that comply with the Wireless Code (the code).

“The commission is concerned that Bell has opted to disregard a key consumer protection outlined in the code, which is not in the best interest of consumers.”

Practice not a ‘proportional response?’

The response followed Bell’s letter to the CRTC in April that said the company and its Virgin Plus brand had begun to sell locked cellphones. However, the Wireless Code — in effect since December 2017 — says that phones sold in Canada must be unlocked at the time of a signed contract or before they are sold to customers.

“The commission acknowledges the importance of ensuring the safety and security of customers and employees at retail outlets,” Morin wrote.

“The commission, however, considers that Bell has not demonstrated that the practice of locking cellphones for up to 60 days after purchase is a necessary and proportionate response in this case.”

Bell was asked in May to provide more information about the policy change and how it would continue to comply with the Wireless Code.

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“Bell indicated that locking cellphones is in the best interest of consumers and is necessary to address an increase in crime and financial loss experienced by the wireless industry,” Morin wrote.

The company responded that the code doesn’t explicitly say a specific time when the devices must be unlocked. If the CRTC disagreed with the decision, Bell asked to be temporarily allowed to lock phones for 60 days and sought an agency proceeding to consider changes to the code.

The CRTC said the policy is clear and Bell didn’t consider other measures to remain compliant with the Wireless Code.

“Ultimately, any solution that Bell, or other wireless service providers, implement as a means of addressing potential criminal activity at points of sale, must be in compliance with the Code,” Morin wrote.

Bell told to ‘immediately cease’ locking phones

The commission denied Bell’s request for a decision to temporarily allow it and other wireless providers to lock phones for 60 days and to launch a proceeding to consider changes to the code.

The CRTC said it required Bell to “immediately cease selling locked cellphones” and “unlock, free of charge, any cellphone still locked to its network.”

Bell was given until Jan. 9 to count the number of phones sold since April 22 that were locked, the number of customers who asked for the phones to be unlocked before the 60 days were up, the number of requests granted, how long it took to unlock those phones, the number of complaints about the locked phones and actions taken to resolve them.

“All wireless service providers are responsible for remaining compliant with the code at all times,” Morin wrote.

“In this case, Bell informed the commission just days before putting its new practice into effect as a fait accompli. In the commission’s view, when a company is seeking relief from its regulatory obligations, they should engage the commission sooner.”