Fido Joins Koodoo In Nixing System Access Fees…. Is This The Start Of A Trend? Not Yet.

Rogers owned Fido announced yesterday that it is re branding itself as a discount cell phone company and it is killing off the hated System Access Fee that make Canadians so angry, and cell phone companies rich. They joins Telus owned Koodo along with a few other smaller cell companies that do not charge this fee. The CBC has a story on this that seems to imply that the System Access Fee is on the way out. However I would disagree slightly. I think carriers will find ways of grabbing this revenue as the extra $6.95 is basically free money for them. Having said that, the new carriers that are entering the market in the next couple of years are saying for now that they will not charge this this fee, so that may put pressure on the existing players to do away with the System Access Fee. Oh yeah, there’s that class action lawsuit as well.

Consumers can hasten this process by switching to companies to do not charge this fee. If enough people do that, I think you’ll see a radical change in the mindsets of the existing cell phone companies. After all, the only way they can make money is to have customers. No customers, no money, no happy shareholders.

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