Rogers Communications Inc. in unveiling a new mobile plan for low-income Canadians that it says will make 5G wireless services more accessible for eligible customers, one of several undertakings the company agreed to when it received the federal government’s approval for its acquisition of Shaw Communications Inc. earlier this year.

The program, launched on Nov. 7, offers a no-cost smartphone device with a 5G mobile plan for $25 a month on a two-year agreement, and joins already existing programs of standalone internet and TV bundles for low-income earners.

Cost is a major reason why one in 10 Canadians doesn’t carry a mobile phone, said Phil Hartling, president of Rogers’ wireless division.

“We’re focused on those low-income Canadians who want to be part of the 5G world, but so far haven’t been able to join because of the cost,” Hartling said. “We think this program addresses that.”

The plan includes three gigabytes of 5G data and either a Samsung Galaxy A14 or Motorola G 5G, which cost over $350 by themselves, at no-cost for a 24-month term. At the end of the two-year term, the customer owns the phone.

There will be no overage charges and the program allows for two phones and four mobile plans per recipient family, Rogers said. Customers who already have a 5G-enabled device can use their own phone with the plan, it added.

Non-compliance could cost

Hartling said that although Rogers did make a commitment to Innovation, Science and Economic Development Canada, it had already committed to improve affordability for wireless services with or without that undertaking.

The undertaking was part of a string of 21 conditions that Rogers and Quebecor Inc.’s Vidéotron, which bought Shaw’s Freedom Mobile in a side deal, must adhere to as part of the approval of the $26-billion merger, which closed in April.

Other conditions laid out by Industry Minister François-Philippe Champagne at the time included at least $6.5 billion in spending, a commitment to Western Canada and an understanding that wireless prices must come down, with financial penalties if Rogers failed to comply.

“If I don’t see lower prices in Canada, everything is on the table and I will seek further powers in order to achieve that for Canadians,” Champagne said in April.

Non-compliance to the agreements can cost Rogers up to $1 billion in financial damages, the industry minister said, noting that the companies are subject to annual reporting requirements on their compliance with the terms of the deal.

“I would say that it’s both good business for us to address that affordability concern with consumers, as well as it’s also supportive of the commitment we made to ISED,” Hartling said.

Rogers said it estimates 2.5 million Canadians will be eligible for the program.

It said this includes: people who receive provincial income support or disability benefits; seniors receiving the federal guaranteed income supplement; rent-geared-to-income (RGI) tenants of a non-profit housing partner organization; recipients of the federal Resettlement Assistance Program; and families receiving the Maximum Canada Child Benefit through Connecting Families.

The carrier expanded its low-income high-speed internet program, which is available to 1.5 million eligible customers, to Western Canada and Northern Ontario in July. It was not able to disclose how many have previously signed up for those programs.

• Email: dpaglinawan@postmedia.com