Telus $15 SIM fee clashes with CRTC's new activation rules

Telus is running into regulatory trouble over a $15 SIM card fee it introduced this week — exactly when new Canadian Radio-television and Telecommunications Commission rules banned activation charges.

On June 8, Telus announced it would charge customers $15 for a physical SIM or eSIM on new activations, starting Thursday. The company frames this as a product purchase, not an administrative fee — covering manufacturing, licensing, packaging, and shipping costs. For eSIMs, Telus added, the charge covers digital security and technical support.

But the CRTC saw it differently. On Tuesday, Scott Hutton, VP of consumer strategy at the commission, sent a letter to Telus warning that the fee may violate the Telecommunications Act. The new rules, effective June 12, prohibit activation, modification, and cancellation fees that could create barriers to switching plans. "A SIM card or eSIM is required for the delivery of the wireless service customers are purchasing," Hutton wrote. "It would not appear that the SIM purchase fee falls under the exemption considered by the Commission for optional services and products."

Telus stands by its position. A company spokesperson told Daily Hive the SIM card has always been a product for purchase, not an administrative service, and the company will comply with the CRTC's decision while continuing to charge for the device itself.

This echoes a similar standoff in May, when the CRTC warned Bell after it replaced an $80 connection fee with a $40 handling charge for new devices. The regulatory pressure suggests telecom giants testing the boundaries of the new rules may face formal action. Hutton's letter ended with a diplomatic but pointed note: "It is my hope that this situation can be resolved at this stage and will not require more formal regulatory action."

The stakes are clear: fees that look small on a receipt can block customers from switching providers when they should be free to shop around.