The CRTC has sought to balance reasonable cost recovery by operators with its legislative direction to address the fees discouraging consumers from changing provider
The CRTC has prohibited the use of switching fees for consumers changing their broadband or mobile plans
On 12 March 2026, the Canadian Radio-television and Telecommunications Commission (CRTC) announced its decision to eliminate switching fees that it considers have acted as a barrier to consumers changing or cancelling their broadband or mobile contracts. On 30 October 2025, the Canadian Government amended the country’s Telecommunications Act, in doing so requiring the CRTC to establish new consumer protection measures. The regulator subsequently consulted on proposed interventions as a part of its Consumer Protections Action Plan, with feedback from individuals, consumer groups and operators helping it to better understand how fees can prevent Canadians from switching. The CRTC’s decision to eliminate extra fees to activate, change or cancel a plan will come into effect on 12 June 2026, having already been reflected in the regulator’s Wireless Code and Internet Code, and are intended to provide consumers with greater flexibility to manage their plans and to take advantage of better offers without worrying about unexpected costs.
Optional or hardware installation fees have been excluded from the regulator’s decision
In the amended Telecommunications Act, section 27.04 prohibits operators from charging a fee for the activation or modification of a service plan, or any other fee meant to discourage consumers from modifying or cancelling their plans. The CRTC was tasked with determining which fees fall under the scope of this section, particularly in relation to those that may be imposed to discourage switching. In its analysis, the CRTC recognised that prohibiting some fees, such as for the installation of new broadband equipment at a customer’s premises, could negatively affect future network deployment because those services represent “actual, necessary and sometimes significant costs” for operators. It also cautioned against the need for additional, optional fees (e.g. for additional equipment or Wi-Fi configuration) to be prohibited due to their optional nature. The CRTC has therefore amended its codes to reflect the exemption of these types of fees.
Early cancellation fees have been targeted for how they discourage switching
The CRTC’s analysis identified early cancellation fees as the primary vehicle for operators to impose fees on customers that discourage them from switching. The Wireless Code previously allowed operators to charge early cancellation fees of either C$50 (£27.25) or 10% of the contract’s remaining monthly charges, whichever was higher. If a customer’s contract included a device subsidy, the charge would be based on its value. The CRTC has decided that early cancellation fees for plans that do not include a device subsidy should be prohibited. These changes were reflected in the Wireless Code, although the regulator plans to combine its two codes into one, to better simplify compliance while reducing red tape. Over the coming months, the CRTC stated that it will also make it easier for consumers to shop for, compare and choose the plans that best suit their needs, further supporting efforts to give Canadians more control over their telecoms services.
