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Rogers Wireless ends system access charge
The country's biggest wireless company, Rogers Communications Inc., has finally decided to kill off its controversial $6.95 system access fee, but subscribers shouldn't hold their breath waiting for a cheaper monthly bill.
As of Oct. 5, plans offered to new Rogers Wireless subscribers will replace the fee with a new government regulatory recovery fee that ranges from $2.46 to $3.46 per month, depending on the province.
At the same time, Rogers will raise the base price of its plans by $5 and throw in three freecalling features, which the company claims is an $11 value.
Liz Hamilton, a spokeswoman for Rogers, said the new billing structure is an attempt to offer subscribers more clarity on their monthly bills.
"What we will be breaking out is what you'll be paying for your wireless services and what you pay for government charges, which will vary by province."
Hamilton said the carrier will spell out the new fee breakdown on its website and clarify that it's not a fee Rogers is mandated to collect on the government's behalf.
Rogers' move comes as several new wireless companies Wind Mobile, Public Mobile and DAVE Wireless prepare to enter the market in the coming months with promises of cheaper rates and better customer service.
In apparent preparation for the competitive onslaught, Rogers ditched the system access fee at its discount Fido brand last year. Similarly, the discount brands of Bell and Telus Solo and Koodo, respectively don't charge their customers system access fees.
However, the carriers have so far been reluctant to dump the fees for their main brands. Telus currently charges customers $6.95 per month while Bell charges between $6.95 and $8.95.
Such fees are the subject of a classaction lawsuit that was certified by a Saskatchewan court last year. The suit argues that the charge was erroneously presented to subscribers as a government tax, which hasn't been the case for decades.
Carmi Levy, an independent technology analyst,[url=http://www.holisteroutlet.cc]http://www.holisteroutlet.cc[/url], said Rogers' decision to replace an opaque fee with a more specific one is likely based on the notion that it will be easier for subscribers to swallow.
"The more clear you can make it to customers what goes into a monthly fee, the greater the chance they will accept the fee," he said, noting that gas stations and airlines have broken out government charges in their pricing for years.