Canadians can cancel their wireless contracts without fees after two years under the new wireless code unveiled Monday by the CRTC.

The wireless code also caps charges for extra data at $50 per month and charges for international data roaming at $100 per month to prevent bill shock, the CRTC said in a release.

The new rules by the Canadian Radio-television and Telecommunications Commission will apply to new contracts for cellphones and other personal mobile devices starting Dec. 2.

Consumer groups and observers were quick to applaud the much-anticipated changes.

“The Wireless Code has rules to help wireless customers where it counts — the bottom line,” John Lawford, executive director and general counsel at the Ottawa-based Public Interest Advocacy Centre said in a release. “It also makes it easier to switch companies because those costs are limited and are clear.”

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“Every day, Canadians rely on wireless devices while in their homes, at their jobs, at school or travelling abroad,” Jean-Pierre Blais, chair of the CRTC, said in a release. “The wireless code will contribute to a more dynamic marketplace by making it possible for Canadians to discuss their needs with service providers at least every two years.”

The CRTC said that, among other things, individual and small business consumers will be able to:

Terminate their wireless contracts after two years without cancellation fees, even if they have signed on for a longer term

Have their cellphones unlocked after 90 days, or immediately if they paid for the device in full

Return their cellphones within 15 days and specific usage limits, if they are unhappy with their service

Accept or decline changes to the key terms of a fixed-term contract and receive a contract that is easy to read and understand.

“We didn’t focus on the length of the contract, we focused on the economic relation,” Blais said in an interview with The Canadian Press.

“So, in effect, it’s equivalent to those asking for a ban of three-year contracts without us actually banning three-year contracts, because what we’re saying is the contract’s amortization period can only be for a maximum period of 24 months.”

In the lead-up to public hearings held earlier this year, the CRTC said it heard a lot of angry comments about three-year contracts.

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The regulator also had a backer in the federal Competition Bureau, which supports measures to limit contract length.

“What we were concerned about was ensuring that there was a dynamic marketplace, that is, that people didn’t feel entrapped in their contracts when they want to maybe use the offer of a new entrant or a competitor across the street,” Blais said.

“So it really is about freeing up Canadians to choose either stay with their current carrier, under renegotiated terms, or go to a competitor.”

The new code is a “definite improvement” over the CRTC’s earlier draft version, said Michael Geist, a law professor at the University of Ottawa who specializes in the Internet and e-commerce.

“The code also represents a major policy loss for the incumbent carriers,” Geist wrote on his blog.

“As recently as 2006, wireless protections were viewed as an impossibility.”

The wireless code will apply to all service providers in Canada, in particular where customers pay a monthly bill after using their services and, where applicable, to prepaid wireless services, the CRTC said.

“The wireless code is a tool that will empower consumers and help them make informed choices about the service options that best meet their needs. To make the most of this tool, consumers also have a responsibility to educate themselves,” Blais said.

The CRTC’s public consultation on the wireless code attracted more than 5,000 participants, including individual Canadians, who shared their views on an online discussion forum, in writing and at the public hearing held in mid-February.

Rogers Communications Inc. and BCE Inc. are both reviewing the terms of the code and did not have immediate comment, spokesmen for the companies said Monday.

Rogers, BCE and Telus Corp. together control about 90 per cent of the domestic wireless market, even after four new competitors attempted to win market share with stripped down, prepaid phone plans. One of the new firms, Mobilicity, agreed last month to be bought by Vancouver-based Telus for $380 million. Backers of Wind Mobile, another of the new players, are exploring a sale of the Toronto-based carrier.

With files from Star wire services

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