- If you were given a phone for free or at a reduced cost when you signed up for a fixed term contract, the cancellation fee will be based on the value of the phone, divided over the remaining term of the contract.
You received a $300 phone at no cost when you signed a three-year (36 month) contract. You cancel the contract after one year (12 months). The maximum cancellation fee is $200: 300 - (300x12/36) = $200
- If you were given a phone for no cost or at a reduced rate when you signed a no-term contract (no fixed term), the maximum cancellation fee is divided by a 48 month time period.
You received a $300 phone at no cost when you signed a no-term contract. You cancel the contract after 12 months. The maximum cancellation fee is $225:
300 – (300 x 12/48) = $225.
- If you were not given a phone as an incentive for signing a contract and are using a phone you provided yourself, the maximum cancellation fee is $50 or 10 per cent of the remaining cost of the contract, whichever is less."