Richard Branson takes on Canadian mobile phone companies
A new ad campaign by Virgin Mobile Canada takes aim at Rogers Communications, challenging Rogers to come clean with its customers about new fees being charged to subsidize rural programming – fees that are not mandated by the government.
Rogers has replaced the System Access Fee with a Government Regulatory Recovery Fee, which has the look and feel of a government-imposed tax.
Here is the wording that Rogers uses to explain its fees:
“The Government Regulatory Recovery Fee ranges from $2.46-$3.46/line/month (varies by province and plan selected). It is applied to help fund fees, costs and other amounts related to federal, provincial and/or municipal mandates, programs and requirements such as provincial 911 fees, spectrum acquisition, licensing charges, and contribution charges to help subsidize telephone service in rural and remote areas. It may include costs incurred in prior years that are still being fully recovered. It is not a tax or charge the government requires Rogers to collect. The fee and the components used to calculate the fee are subject to change as the fees/costs of government mandates/programs change.”
Branson is calling for new standards for mobile phone carries that would “abolish bogus, made-up fees and force mobile companies to stop misleading consumers.”
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Virgin Mobile Canada
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Phone kiosk in Edmonton.Virgin Mobile Canada is a cellular telephone company that was launched on March 1, 2005 as a joint venture between Virgin Group and Bell Canada. It is now a wholly owned subsidiary of Bell Mobility.