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PM Harper wades into wireless contract fray with Facebook post

PM Harper wades into wireless contract fray with Facebook post

Prime Minister Stephen Harper is stepping into the debate about cellphone contracts, seemingly supporting new rules that would allow Canadian consumers to pull out of their agreements without penalty after two years. What's unclear is why he's doing it.

A Facebook post on the prime minister’s page earlier this week asks Canadians to sign his Conservative government’s petition if you believe that "Canadians will benefit from more choice and greater competition among wireless providers."

In a bright, highlighter yellow-coloured image, the message is clear: “Canadians should be allowed to cancel their cellphone contracts after two years without cancellation fees. Sign the petition if you agree," which on Friday had 3,200 "likes" and nearly 650 shares.

In June, the Canadian Radio-television and Telecommunications Commission unveiled a wireless code that will let customers cancel their cellphone or smartphone contracts after two years without cancellation penalties, even if a consumer has signed up for longer, among other things.

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Wireless carriers Bell, Rogers and Telus and others are launching a court challenge with the Federal Court of Appeal on parts of the new wireless code of conduct, which was unveiled in early June.

It appears one key point of contention, and confusion, for wireless carriers concerns contracts signed before Dec. 2 when the rules come into effect. Will consumers be able to walk away from them in June 3, 2015, which is when the code's provisions must apply to all wireless contracts -- less than the two years prescribed?

(Companies typically subsidize phones when offering contracts. The sticky point here appears to be if customers can walk away earlier, what happens to the unpaid portion of their device subsidy?)

If so, the carriers say the Canadian Radio-television and Telecommunications Commission is overstepping its bounds by retroactively applying the wireless code to existing contracts.
It's still unclear how the challenge will play out. In the meantime, it's equally unclear why Harper has launched the petition. Is Ottawa trying to the win the hearts of consumers by posting the petition? Who is the government petitioning?

One media outlets suggested the Conservative Party may just be using Facebook to collect names, e-mail addresses and phone numbers of sympathetic voters, while another notes there's a link where you can donate to the party.