The Death of System Access Fees?

In Canada’s wireless oligopoly, one of the most controversial issues is the system access fee. It’s a monthly charge of between $6.95 to $8.95/month, which generates about $800-million a year in revenue for wireless carriers.

Many consumers believe the system access fee is something the wireless carriers have to charge to comply with federal rules involving spectrum licenses but that’s not the case all. In fact, it’s just another revenue source the carriers don’t include in their pricing packages. It’s a lot like the airlines, which advertise low prices before you discover all the additional fees and taxes.

Despite consumer complaints and a class-action lawsuit, the carriers have been loathe to get rid of a golden goose. This, however, could change as two of Canada’s new wireless players have stated they do not plan to charge a system access fee.

Faced with the new reality, Rogers has relaunched its Fido brand and discontinued the $6.95/month “system access fee” for new subscribers, or existing customer who switched their plans. Bell has also waived the $6.95 fee for its Solo brand as part of holiday sales promotions.

There is no indication Rogers, Bell or Telus are going to stop charging the system access fee for all of its customers but it may not have a choice if consumers start to realize they’re being charged an addition fee that has nothing to do with anything other a cash grab.

In an ideal world, system access fees would be rolled into the cost of pricing packages so consumers knew the exact price of what they were being charged. The moves and Rogers and Bell could be a crack in the armor, and an indication that this revenue tool is going to disappear.

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