System access fee

This article is about Canadian telephone charges. For UK charges for special-rate services, seeTelephone numbers in the United Kingdom § Access charge and service charge.

Thesystem access feeis a non-governmentalsurchargeimposed by most Canadian telephone companies on their customers' monthly bills.Although it is normally charged for wireless services,Rogers Communicationsand the now-defunctSprint Canadaalso charged its home phone customers a system access fee.

Price for the system access fee varies by carrier and date it was applied with Bell charging betweenCan$8.95 and $6.95. Rogers normally amounts to $6.95/month (the System Access Fee on Rogers Home Phone Services was $5.95/month,but has since been merged to the base price). For example, if a wireless plan has been advertised at $20/month, the customer subscribing to it would actually be paying an unadvertised rate of at least $26.95/month, excluding other fees and government taxes.

Government Regulatory Recovery Fee

Since October 5, 2009,Rogers Wirelesshas increased the base cost of all of its monthly plans by $5, and they also replaced their formerSystem Access Feewith a Government Regulatory Recovery Fee (GRRF). This fee currently ranges from $1.93 to $3.35, depending on the wireless service selected. In theory, Rogers is simply renaming its System Access Fee. Rogers notes in its fine print that the GRRF "is not a tax or charge the government requires Rogers to collect."

In a press release issued byVirgin Mobile Canada(at the time a joint venture between Rogers' chief competitorBell Canadaand theVirgin Group), Virgin Group chairmanRichard Branson,criticized Rogers' Government Regulatory Recovery Fee.

On July 4, 2012, Rogers Wireless "tucked in" the GRRF into the price for their monthly plans. The charge is no longer listed separately.Bell Mobility's monthly plans are similar to Rogers', so a $2 increase can be found on those plans if client does not subscribe to online billing.

Criticism

The Canadian Government has required Canadian cellular carriers to make it clear that the SAF is not required for any regulatory or government purpose. As a result, the carriers claim that the system access fee covers network operation and maintenance costs. Some criticshave argued that the SAF results in muchprice gougingand should simply be added to the advertised monthly fee instead of being a separate entity and that network upgrades and infrastructure maintenance are simply the costs of doing business. Thus, the monthly plan price point should already reflect that.

Class action lawsuit

In 2006 a class action lawsuit was brought against the major carriers with respect to the System Access Fee. After an initial rejection, it was certified as class action on 7 September 2007 by theCourt of Appeal for Saskatchewan.Lawsuits in other provinces, such asBritish Columbiaare also pending.

TheSupreme Court of Canadareleased a ruling on 28 June 2012 that it would nothearan appeal of the Court of Appeal for Saskatchewan decision by the telecommunications companies.