October 15, 2012 / 4:38 PM / 6 years ago

Telus to stop charging mobile-phone activation fee

(Reuters) - Telus Corp said on Monday it will be the first of Canada’s big three telecommunications companies to do away with activation fees for new wireless-device customers.

A Telus retail store is seen in downtown Montreal, June 21, 2007. BCE Inc., Canada's largest telecoms group and a possible target of three international buyout bid groups, said it was in talks to explore the possibility of combining with rival Telus Corp. REUTERS/Shaun Best

Vancouver, British Columbia-based Telus also said it will get rid of a C$25 ($25.50) equipment exchange fee for customers who buy a new device. But it said it will charge C$10 for SIM cards starting November 1 so that it can cover product costs that have been included in the renewal and activation fees.

Faced with heightened competition from low-cost service providers, Telus, Rogers Communications Inc and BCE Inc’s Bell Canada are under greater pressure to cut prices and offer discounts to retain customers and win over new ones.

Telus’s announcement came a month after Canada’s Competition Bureau said it was suing the country’s three top phone companies for what it said was the promotion of costly premium texting services, while giving the impression that they were free.

($1=$0.98 Canadian)

Reporting By S. John Tilak; Editing by Peter Galloway

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