Virgin Mobile and Rogers Wireless Spar Over User Fees

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4:36 pm on November 6, 2009 | Category: Business, Telecom Services, Wireless

Canadian wireless carriers are engaging in a war of words over user fees, as Bell Canada subsidiary, Virgin Mobile, accuses larger rival, Rogers Wireless, of charging its customers a “bogus, made-up fee.”

Rogers scrapped its unpopular ‘System Access Fee’ earlier this year, but replaced it with a Government Regulatory Recovery Fee, and increased the price of some cell phone plans.

“I suppose that they hoped by putting ‘Government’ in the title that people would assume the fee is legitimate,” quipped Virgin Group Chairman, Richard Branson, in a press release.

Virgin has also embarked on a marketing campaign involving posters that read ‘WTF?,’ which the company claims stands for “what’s the fee,” rather than the more commonly-known vulgar definition.

Rogers spokeswoman, Odette Coleman, responded that “it’s natural to want to follow the leader,” noting that Rogers has already “eliminated the System Access Fee for new customers and Telus (Mobility) has followed suit,” while “Bell, which owns 100% of Virgin, is the only carrier still charging a system access fee for new customers.”

As for the Government Regulatory Recovery Fee, Rogers says it covers “provincial 911 fees, spectrum acquisition, licensing charges, and contribution charges to help subsidize telephone service in rural and remote areas.” It is about half the cost of the old System Access Fee, which is still charged by Bell Mobility (but not Virgin).

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they are all cheaters…

Comment by Shawn — November 6, 2009 #
I called Rogers about this a while ago because as I did the math on there new plans with “no system access fee” it didn’t add up to any consumer savings. but actually an increase of about $0.50 while passing it of as though Rogers was actually saving customers money by “scrapping” the fee. The person on the other end was actually fairly honest in saying that the new plans did actually cost more an understood why I felt that Rogers was being very dishonest and miss leading.

They really are just hiding it in the cost of the plans by increasing the cost of everything by 5 bucks with no improvment to service or reduction in contract terms.

Comment by Adam — November 7, 2009 #
Ummm….Rogers….stop spitting in our eye and calling it an eye-wash!

Comment by Evan — November 7, 2009 #
Why dont customers have a bill of rights to protect ourselves from corporations? Why cant they swallow the loss of a fee that was made up. Why is it they need another fake fee to make up for the one was illegal? We are being gouged in every direction from every Corporation. Our government doesnt care at all. Mainly because election contributions are taken from the big firms. Such as Insurance Companies applying for and recieving permission to gouge its customers.
When is enough, ENOUGH?

Comment by John Deebank — November 7, 2009 #