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Ottawa Presses Telus, BCE to Change Pricing Policy

Reuters
Jul 09, 2008

Industry Minister Jim Prentice called the decision "Ill-thought out." (Wikipedia)


OTTAWA—The Canadian government tried to pre-empt a consumer revolt against two leading phone companies on Wednesday, demanding explanations from the wireless units of BCE Inc and Telus Corp on their new pricing policy for text messages.

Both companies announced this week they would begin charging some customers for incoming text messages, which have been free until now.

"I believe this was an ill-thought-out decision," Industry Minister Jim Prentice said in a statement, adding it is his duty to protect consumer interests.

Prentice sent letters to the chief executives of Bell Mobility, a unit of BCE, and Telus asking them to meet with him before Aug. 8, the date Bell plans to introduce its new charge.

The meeting—a highly unusual move by a Conservative government that has sought to partly deregulate the telecommunications industry—would take place "with a view to finding a solution that provides the best service to consumers at the best price", Prentice said.

Bell and Telus say they will charge 15 Canadian cents per incoming message. Telus will begin charging the fee Aug. 24.

The move has caused an outcry among clients and prompted the New Democratic Party to launch an online petition demanding a reversal of the policy.

Telus defended its decision, saying the volume of text messages has skyrocketed and most U.S. carriers already charge for getting them, according to the Globe and Mail newspaper.

There are more than 20 million wireless phone subscribers in Canada and they send more than 45.3 million text messages a day, an industry group says.

The new charge would not apply to customers who have a monthly fee plan that includes text messages.

Prentice said he was particularly concerned that users could be charged for unsolicited, unwanted or spam messages.

"While I have no desire to interfere with the day-to-day business decisions of two private companies, I do have a duty as minister of industry, when necessary, to protect the interests of the consuming public," he said.

($1=$1.01 Canadian)


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