Bell faces $10-million fine over locked phones: what it means for your next upgrade

For Canadians shopping for a new phone this fall, the shift is small in scope but worth understanding, especially if you are switching carriers, reselling an old device or travelling with a new phone soon after purchase.

What did the CRTC actually change?

Wireless providers have had to sell cellphones unlocked and free to use on any compatible network since the Wireless Code was enacted almost a decade ago. That requirement is now temporarily paused industry-wide. Since August 14, any carrier can sell a phone locked to its network, as long as it unlocks the device automatically within two business days, according to the CRTC. Customers can also ask for an immediate, no-charge unlock instead of waiting.

Carriers that use this temporary window must clearly disclose that a phone is locked and for how long, and must report fraud and theft data to the CRTC by October 30, the notice states.

Why did Bell’s 60-day policy spark this fight?

The story dates back to April 2025, when Bell told CRTC staff it planned to start locking new devices for 60 days, arguing the move would cut down on fraud and crime at its retail stores, according to the commission. Bell began the practice the next day.

The commission found Bell’s approach didn’t comply with the Wireless Code and, in a letter, directed the company to stop selling locked phones immediately, iPhone in Canada reported. Bell kept selling locked devices anyway and made several procedural requests to have the finding reversed, prompting the CRTC to open a formal proceeding asking Bell to show cause as to why its practice shouldn’t be treated as a violation. If the commission rules against Bell, the company could face a penalty of up to $10 million.

Telus made a similar request of its own in May, telling the CRTC that easy unlocking had turned smartphones into “a highly liquid currency that drive violent robberies,” Daily Hive reported. That request for a 60-day lock hasn’t been approved.

What does this mean if you’re buying a phone right now?

For most Canadians, the practical impact is minor. Two business days is a short window, and providers still have to unlock automatically or on request, at no cost, per the CRTC’s notice. A few situations are worth planning around:

• Switching carriers quickly: If you’re porting your number to a new provider the same day you buy a phone, a locked device could complicate an otherwise seamless same-day switch
• Buying to resell or gift abroad: A phone bought for resale, gifting overseas or use with a different SIM won’t work until it’s unlocked
• Travelling soon after purchase: Anyone leaving the country within two business days of buying a new phone should confirm it’s unlocked, or ask for an immediate unlock, before departure

How can you protect yourself when buying a new phone?

• Ask before you buy: Confirm directly with the retailer whether the device is locked, and for how long
• Request an immediate unlock: Under the temporary rules, you can ask to have the phone unlocked right away instead of waiting the full two days
• Get it in writing: Carriers must disclose locking practices clearly, so ask for that information on your receipt or purchase confirmation
• Watch for updates: The CRTC is accepting public comments on Bell’s case until September 14, with replies due September 24 — the temporary rule could change again once the commission reaches a final decision

The bigger question, whether locking devices actually reduces fraud or just inconveniences honest customers, is still unresolved. The commission itself has pondered whether the practice is proportionate given how many customers it affects compared with the smaller number of people committing fraud.