Budget 2026 targets phone fees, telecom scams and AI, and sets up a digital safety regulator
Key points
- Budget 2026, released November 5, backs rules ending fees to activate, change or cancel plans, which Ottawa estimates will save Canadians about $100 million a year.
- New anti-fraud legislation would give the CRTC, Canada's telecom regulator, more power to set fraud-prevention rules for telecom companies. Ottawa will consult first, with details expected in 2027.
- Ottawa plans to release more 5G spectrum and support satellite services to improve rural and remote coverage.
- The budget sets aside $176.3 million over five years, then $29.3 million a year, for a Digital Safety and Data Protection Commission.
- Data portability rights would be extended to telecommunications, which could make switching providers easier.
Prime Minister Mark Carney’s Budget 2026, released November 5, includes measures on wireless fees, telecom fraud, spectrum, AI and online safety. For phone customers, the main items are a continued push on affordability and tougher anti-fraud rules for carriers.
On fees, the budget highlights rules that eliminate charges to activate, change or cancel a plan. Ottawa estimates the change will save Canadians about $100 million a year. It points back to the CRTC’s ban on $80 activation and switching fees, which took effect in June. The government also plans clearer internet pricing and easier switching between providers. It says a 60GB wireless plan that averaged $105 in 2022 is now widely available for $40 to $50, and that more work is needed on consumer choice, especially where few providers operate. iPhone in Canada noted that cellphone prices may be starting to rise again as deep discounts fade.
The budget proposes a National Anti-Fraud Strategy and new legislation covering telecom providers, financial institutions and digital platforms. Under it, the CRTC would get more authority to impose fraud-prevention obligations on telecom companies, and providers could be required to share information about fraudulent activity. Ottawa says Canadians reported more than $704 million in fraud losses in 2025, though the real total is believed to be much higher. The government will consult before introducing the legislation, with details expected in 2027.
The budget also reinforces Ottawa’s telecom competition roadmap, published in October. The government plans to release more spectrum for 5G and private networks and to support satellite services that could improve coverage in rural and remote areas. Proposed changes to spectrum transfers, wireless network access and infrastructure are meant to help competing carriers expand. No specific new satellite provider or timeline is named.
The budget proposes $176.3 million over five years, then $29.3 million a year, for a Digital Safety and Data Protection Commission. It would oversee Bill C-34, the Safe Social Media Act, which sets obligations for social media platforms and AI chatbots on harmful content, with added protections for children. It would also require some AI-generated content to be labelled. These measures are still moving through Parliament. Ottawa is also advancing Bill C-36, which would change Canada’s consumer privacy rules to give people more control over their personal information. The budget proposes extending data portability rights to telecommunications, which could ease the process of changing providers.
On AI, the government says it is working to give students at Canadian universities, colleges and CEGEPs access to trusted AI agents, with more details expected before the end of 2026. The budget continues its AI investment strategy, including a proposed equity investment of up to $1.6 billion in Toronto-based Cohere, and plans to help Canadian AI companies access 500 megawatts of domestic computing capacity. Separately, the budget proposes extending the enhanced Canadian Journalism Labour Tax Credit of 35% through December 31, 2028.
