Two of Canada’s largest telecommunications companies, Bell (TSX: BCE) and Rogers (TSX: RCI.B), claim that government imposed rules mandating that all Canadian wireless carriers sell unlocked phones are causing a rise in phone thefts across the country.
"There have been multiple instances of armed robberies at our stores targeting unlocked, new devices," Bell said in a submission to the Canadian Radio-television and Telecommunications Commission (CRTC). The broadcast regulator had requested information from carriers to assess how the rules enacted last December are working out.
To help spur competition, on December 1, 2017, the CRTC mandated that all carriers unlock phones for free and sell only unlocked phones going forward. Previously, telecommunications companies sold customers phones locked to their networks and charged a fee — typically $50 — to unlock them so people could switch providers. The CRTC now bans cellphone unlocking fees and requires that orders all new devices be unlocked when initially sold.
In the six months since the new rules took effect, Rogers said that it has seen a 100% increase in the volume of missing devices that were supposed to be shipped directly to customers.
"We believe this trend is attributable to the availability of unlocked devices," which are "more desirable to fraudsters and thieves," Rogers wrote in its CRTC submission.
Rogers made no mention of in-store robberies. Both Rogers and Bell declined to offer more information about the thefts, including actual numbers and details regarding any police investigations. Bell did state that it's now taking precautions by locking phones until they are activated for customers. Telus declined to comment on whether it has seen a similar rise in thefts.
During submissions made last autumn, Bell, Rogers and Telus (TSX: T) all advised against changing the status quo. Their testimony included the argument that unlocked phones attract criminals.
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