Canada’s telecom regulator temporarily halts enforcement of handset locking rules, opening a window for carriers to sell locked devices with strict unlocking timelines as disputes over theft prevention measures intensify.
Canada’s telecom regulator has paused the enforcement timetable in its dispute over handset locking, creating a temporary opening for carriers to sell phones in a locked state so long as they are unlocked within two business days or immediately on request. The Canadian Radio-television and Telecommunications Commission said the suspension is intended to give parties time to assess procedural decisions before filing further interventions, with fresh deadlines to follow.
The move follows complaints from Bell and Telus, both of which have argued that the long-standing ban on locked phones has made it easier for thieves and fraudsters to profit from stolen handsets. The CRTC prohibited locked devices in 2017 and removed unlocking fees, but Bell later began locking phones in its stores, and the regulator last year told the company to stop. In a separate letter, the CRTC also found TELUS out of step with the Wireless Code and ordered it to cease selling locked phones and unlock affected devices at no charge.
Telus went further in May, asking the regulator to approve a 60-day locking period for newly financed or subsidised phones, saying the change would help curb theft, fraud and the rapid resale of high-value devices. Bell has made a similar case, claiming its own 60-day locking approach has sharply reduced in-store robberies. The CRTC has not approved Telus’s proposal and has asked the company to say by 21 August whether it still wants to pursue it in light of the new proceeding.
The wider case could have significant consequences. The regulator has opened a show-cause process for Bell under the Wireless Code’s device-unlocking provisions, which require handsets supplied by a carrier to be unlocked and mandate free unlocking on request. If the commission concludes Bell breached the rules, it says it will consider enforcement action; under the Telecommunications Act, penalties can reach C$10 million, with possible liability for directors as well. Public interventions are due by 14 September, with replies due by 24 September.
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