The Globe and Mail reports in its Friday, May 22, edition that three-year
cellphone contracts end in June. The Globe's Christine Dobby writes that the Canadian Radio-Television and Telecommunications Commission set June 3 as the deadline for
the wireless code to apply to all contracts. Ms. Dobby says that
will leave a wave of customers under three-year
contracts able to cancel with no penalty. She says this,
combined with the routine expiry of two-year
contracts, has created what the industry calls the
"double cohort," a period of increased competition
for customers not tied to a contract. Some carriers launched a legal
challenge saying the CRTC was
retroactively interfering with contractual
rights, but the Federal
Court of Appeal dismissed the
case this week. Representatives
for the Big Three carriers -- Rogers
Communications, Telus and BCE -- all said Thursday
they do not plan to appeal the decision
further and will comply
with the terms of the code.
To prepare for the increased
number of free agents
this deadline will create, wireless
carriers have been taking steps to
convince customers to stay, as
well as preparing to spend more
on customer acquisition during
this period.
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