Canada’s two largest wireless operators increased their data overage fees for new customers before the busy back-to-school shopping season, a move industry watchers suggest is designed to convince customers to upgrade to pricier plans to avoid extra charges.
This week, Rogers Communications Inc. increased its overage fees to $7 per 100 megabytes from $5 per 100 MB, matching BCE Inc.’s increase to $7 per 100 MB in April. Canada’s wireless regulator dictates that carriers must stop data overage charges at $50 per account per billing cycle unless a customer expressly consents to keep racking up their bill, so higher fees mean consumers will hit the $50 limit more quickly.
The fee hikes come as data consumption becomes increasingly important for carriers’ bottom lines. As consumers burn through data streaming and sharing videos on their mobile devices, the major operators’ average revenue per user has risen as people upgrade plans or get dinged with overage fees.
Emily Jackson – Financial Post – July 7, 2017.
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