Monday, September 25, 2006
I hate system access fees
I hate the term 'system access fee'. It sounds so official. The cellular industry wants consumers to think that it is a government mandated charge. 'System access fee' sounds better than 'profit fee' or 'our way to increase prices even though you have a 3-year contract fee'. But that is all it is.
I say, if you want to raise prices - do it. It's your business. Hiding behind an add-on like 'system access fees' is just plain misleading. It's unfair and inappropriate to raise prices on consumers who have a contract.
The ability to raise the 'system access fee' from $6.95 to $8.95 is more evidence of what the investment industry calls 'rational competition' in Canada - the avoidance of a price war. Good for investors, lousy for consumers.
It isn't clear that wireless number portability (coming in March 2007) is going to bring pricing benefits to consumers. The signals being sent from the carriers seems to trending prices upwards. One carrier is raising domestic long distance rates to an astounding 30 cents per minute plus air time (we note that their cost is around a penny). Now this other carrier is signalling higher system access fees.
If a carrier raises the system access fee for people under contract, what was the value for the consumer of the agreement itself?
Postscript: [8:20am]
A month ago, the CRTC issued its Consumer Bill of Rights decision. That Decision doesn't help in the case of System Access Fees for two reasons: first, wireless carriers are not covered - the Bill of Rights applies to ILECs only; second, there is nothing that prohibits such add-on charges.
Perhaps another reason why the Telecom Policy Review Panel called for the establishment of a body with a greater focus on consumer issues.
Technorati Tags:
Bell Mobility, Rogers, TELUS, system access fees, WNP, wireless number portability, Mark Goldberg
I say, if you want to raise prices - do it. It's your business. Hiding behind an add-on like 'system access fees' is just plain misleading. It's unfair and inappropriate to raise prices on consumers who have a contract.
The ability to raise the 'system access fee' from $6.95 to $8.95 is more evidence of what the investment industry calls 'rational competition' in Canada - the avoidance of a price war. Good for investors, lousy for consumers.
It isn't clear that wireless number portability (coming in March 2007) is going to bring pricing benefits to consumers. The signals being sent from the carriers seems to trending prices upwards. One carrier is raising domestic long distance rates to an astounding 30 cents per minute plus air time (we note that their cost is around a penny). Now this other carrier is signalling higher system access fees.
If a carrier raises the system access fee for people under contract, what was the value for the consumer of the agreement itself?
Postscript: [8:20am]
A month ago, the CRTC issued its Consumer Bill of Rights decision. That Decision doesn't help in the case of System Access Fees for two reasons: first, wireless carriers are not covered - the Bill of Rights applies to ILECs only; second, there is nothing that prohibits such add-on charges.
Perhaps another reason why the Telecom Policy Review Panel called for the establishment of a body with a greater focus on consumer issues.
Technorati Tags:
Bell Mobility, Rogers, TELUS, system access fees, WNP, wireless number portability, Mark Goldberg
Posted by Mark Goldberg @ 9/25/2006 06:54:00 AM 
Comments:
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I agree, Canadian cellular providers mislead us as if we were unaware of the American cellular system.
Canada fights for the right to be economically and commercially equivalent yet we look like complete morons every time we open a cellular bill.
It would be more simple to include the price in the plan. Of course that would make the provider look expensive, but it's honest.
Canada fights for the right to be economically and commercially equivalent yet we look like complete morons every time we open a cellular bill.
It would be more simple to include the price in the plan. Of course that would make the provider look expensive, but it's honest.
Posted by 
: 3:06 PM, November 22, 2006
: 3:06 PM, November 22, 2006
I agree, Canadian cellular providers mislead us as if we were unaware of the American cellular system.
Canada fights for the right to be economically and commercially equivalent yet we look like complete morons every time we open a cellular bill.
It would be more simple to include the price in the plan. Of course that would make the provider look expensive, but it's honest.
Canada fights for the right to be economically and commercially equivalent yet we look like complete morons every time we open a cellular bill.
It would be more simple to include the price in the plan. Of course that would make the provider look expensive, but it's honest.
Posted by : 3:07 PM, November 22, 2006
: 3:07 PM, November 22, 2006
The system access fee is not only on the cell phone bill, it is also on the residential line.
Posted by : 2:49 PM, December 12, 2006
: 2:49 PM, December 12, 2006
The system access fee on your residential bill is not mandatory. All you need to do is find a LD carrier that doesn't charge one. And the current SAFs are probably going up, so you should find a better way soon.
Posted by : 3:23 PM, December 12, 2006
: 3:23 PM, December 12, 2006
How do cellular companies try to mislead their consumers on System Access Fees? Lets take a look at Telus. They are very clear and upfront about where the money from the SAF goes and post the information right on their site http://www.telusmobility.com/about/public_affairs/system_licensing.shtml. Consumers need to understand that carriers themselves pay the SAF on all their inactive numbers on their network. If you dont understand the SAF I would suggest that you speak to rep at your carrier's local dealer.
Posted by : 2:35 PM, March 13, 2007
: 2:35 PM, March 13, 2007
Huh? The carriers don't pay SAF. It isn't a government fee. It is a carrier surcharge. So they don't pay SAF on inactive numbers. They just don't collect it.
Posted by 
Mark Goldberg : 2:39 PM, March 13, 2007
Mark Goldberg : 2:39 PM, March 13, 2007
Totally agree with you. I am an international student in Canada and going to sign a contract with Fido for a student plan. The system access fees just make a big raise for the price. I hate it! Really! Really!
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Posted by : 12:52 PM, August 04, 2007
: 12:52 PM, August 04, 2007 << Home
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