A new twist on ILEC surcharges

AliantJust when we might have hoped that System Access Fees were as bad as it could get, the marketing folks at Bell Aliant have found a new way to stick it to consumers.

The CRTC approved plans by Bell Aliant to introduce a 30-day notice period when customers cancel certain bundles. I guess they figure that if you can’t charge the people who want your services, charge the people who want to go. That will sure leave them with a great feeling, won’t it?

Among others, the plan will affect students who may consider taking bundles for 8 months before going home for the summer. If they don’t remember to cancel their plans in March, the new fee is the equivalent of a 12% rate hike.

What is the fee for? Because Aliant can charge it. Call it a contribution to the Aliant Income Trust Profitability Relief Fund.

On one hand, I could argue that we should let market forces rule – let companies charge what they want. If consumers don’t like it, find another service provider. But this kind of fee is a ‘back-end load’. Customers are being hit with it when they leave – a set of handcuffs to try to get customers to think twice before switching.

Consumers have market forces to bring to bear as well. How could Bell Aliant customers respond? Maybe they could start by canceling their pre-authorized payment plans as an expression of disapproval. Or start shopping elsewhere – after all, you need to give 30 days notice when you switch.

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1 thought on “A new twist on ILEC surcharges”

  1. This fee is just another thing to prove to Canadians that large company’s usually can do what ever they want to there customers, They have there contracts that lock you in with a company from 1- 3 years, then on top of that when your contract is up you have to pay a 30 day notice fee or wait another 30 days if you didn’t know about this fee or forgot to make the call, to switch to a superior and/or cheaper service provider.

    The CRTC “http://www.crtc.gc.ca” should be ashamed for allowing any company to do this. This stops competition among company’s by making a customer think twice when they get a call to change services for a better price keeping Canadian prices up and other providers from becoming a player in the industry..

    Prices for cable, internet and cellphone’s are to high in this country to begin with, along with no competition how does the CRTC expect other company’s to get new customers? All this is doing is keeping Canadian prices up and services well below par with other developed countries.

    The CRTC should be ashamed for making such a decision and this type of business actions should be met with legal action and laws that forbid punishment for a customer wanting to change company’s for a cheaper, superior service, customers who just cannot afford the service anymore, or customers moving out of the service area… Why should a customer have to pay for a service they can not use. This is life things come up at the last minute and decisions have to be made, punishment should not be the price in such a case over a service that doesn’t cost the supplier anything to shut it off once a/the contract is up.

    Myself I have to pay these fees because I am moving for 6 months, even though I have been BELL Aliant’s customer for well over 10 years, without one call or reward for customer loyalty. These company give 3-6 month discounts then expect a customer to stay with them for the rest of there life without any sort of commitment or bonus from them. Well Bell I will never use another one of your services nor your sister company’s in my life.

    I also have no faith in a government agency like the CRTC, shouldn’t it be a public advisory or some sort of voting on these issues, where money cannot buy the result???

    I really wonder who’s pocket BELL Aliant’s money went into on the CRTC staff to make such a bad, shameful decision on behalf of the canadian public and other businesses. What next after a 30 day notice 1 year notice, or how about a lifetime commitment.

    My 2 cents
    Dana

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