Who sets the annual service fees for cellular telephones?
Cellular and personal communications services (PCS) carriers are subject to federal license fees prescribed by regulation. Certain cellular and PCS carriers have decided to pass this cost on to their subscribers along with other costs in the form of an annual or monthly fee. Representatives of the carriers, when asked by their subscribers what this fee is, have referred to it as a “system access fee,” “government tax” or “license fee.” Company representatives may incorrectly explain that this is a license fee collected on behalf of the federal government and that it is paid to either Industry Canada or the Canadian Radio-television and Telecommunications Commission (CRTC). Industry Canada has very little control over the methods carriers choose to distribute their costs for billing purposes. It is quite conceivable that the cost elements that make up this fee go beyond the fees the CRTC and Industry Canada charge and include such additional costs as radio equipment and site acquisition
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- Who sets the annual service fees for cellular telephones?
