Source: https://crtc.gc.ca/eng

Dear Philippe Gauvin,

Thank you for the letter from Bell Canada and its flanker brand Virgin Plus (collectively, Bell) dated 22 April 2025 informing the Canadian Radio-television and Telecommunications Commission (the Commission) of Bell’s intention to start selling locked cellphones. According to Bell, this practice is in response to an increase in crime at its points of sale.

The Commission acknowledges the importance of ensuring the safety and security of customers and employees at retail outlets. 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. Specifically, Bell has 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.

To address these concerns and help protect consumers, this letter sets out the Commission’s determinations on Bell’s practice of locking cellphones for up to 60 days after purchase.

Background

As you know, the Code’s rules on device unlocking require service providers to provide cellphones to customers unlocked at or before the time of sale. This rule was created to contribute to a more dynamic marketplace to the benefit of Canadians, by making it easier for consumers to take advantage of competitive offers.

After the Commission was informed of Bell’s practice, Commission staff asked Bell, in a letter dated 9 May 2025, to provide additional information and to explain how Bell would ensure that it remained in compliance with the Code.

In response, Bell stated that the practice of providing locked cellphones complies with the Code, because the Code does not indicate a specific moment at which they must be unlocked. 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. Should the Commission disagree with that position, Bell requested that the Commission issue a decision to temporarily allow Bell and other providers to maintain this practice and launch a proceeding on an expedited basis to consider changes to the Code.

Commission’s decision…..

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