System access fee
Encyclopedia
The System access fee is a non-governmental surcharge
imposed by most Canadian telephone companies on their customers' monthly bills . Although it is normally charged for wireless services, Rogers Communications
and the now-defunct Sprint Canada
also charged its home phone customers a System Access Fee.
It 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.
has increased the base cost of all of its monthly plans by $5, and they also replaced their former System Access Fee with 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."
and 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.
. Lawsuits in other provinces, such as British Columbia
are also pending .
Surcharge
A surcharge may mean:*an extra fee added onto another fee or charge** Fuel surcharge, sky freight charges which represents additions due to jet fuel prices.** Bunker adjustment factor, sea freight charges which represents additions due to oil prices....
imposed by most Canadian telephone companies on their customers' monthly bills . Although it is normally charged for wireless services, Rogers Communications
Rogers Communications
Rogers Communications Inc. is one of Canada's largest communications companies, particularly in the field of wireless communications, cable television, home phone and internet with additional telecommunications and mass media assets...
and the now-defunct Sprint Canada
Sprint Canada
Sprint Canada was a Canadian telecommunications service provider from 1993 to 2005, when was acquired by Rogers Communications. Sprint offered both residential and business services. It was a key company in the long distance wars of Canada.-Services:...
also charged its home phone customers a System Access Fee.
It 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 5th, 2009, Rogers WirelessRogers Wireless
Rogers Wireless is a wireless telecommunications provider offering mobile phone and data services throughout Canada using Global System for Mobile Communications and Universal Mobile Telecommunications System technology. It is a wholly owned subsidiary of Rogers Communications...
has increased the base cost of all of its monthly plans by $5, and they also replaced their former System Access Fee with 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."
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 critics have argued that the SAF results in much price gougingPrice gouging
Price gouging is a pejorative term referring to a situation in which a seller prices goods or commodities much higher than is considered reasonable or fair. In precise, legal usage, it is the name of a crime that applies in some of the United States during civil emergencies...
and 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 September 7th 2007 in the province of SaskatchewanSaskatchewan
Saskatchewan is a prairie province in Canada, which has an area of . Saskatchewan is bordered on the west by Alberta, on the north by the Northwest Territories, on the east by Manitoba, and on the south by the U.S. states of Montana and North Dakota....
. Lawsuits in other provinces, such as British Columbia
British Columbia
British Columbia is the westernmost of Canada's provinces and is known for its natural beauty, as reflected in its Latin motto, Splendor sine occasu . Its name was chosen by Queen Victoria in 1858...
are also pending .