CRTC slams Bell Canada for its refusal to switch customers to Optel

Toronto-based Optel Communications Corp has won its Part VII application before the CRTC accusing Bell Canada of the equivalent of "slamming" local customers. In a decision released March 30, the commission took several opportunities to slap the wrists of the major telco for its marketing practices. The issue arose from Bell's refusal to switch local customers to the Ontario CLEC, claiming it had a minimum contract period (MCP) agreement with those clients. But Optel said the MCPs were news to many of those customers (NL, Nov 15/99). The company forwarded about 70 letters to the CRTC from would-be subscribers who were unaware Bell considered them clients. Bell does not use written contracts in an effort to cut down administrative costs. This led to confusion, according to the regulator. "In the Commission's view, Bell's practice of providing written terms and conditions after subscription takes place does not sufficiently ensure that customers are making an informed choice, or that they are aware of termination charges and the renewal feature prior to entering into the contract," the CRTC writes in Order 2000-250. "In the Commission's view, the plain wording of Order 99-511 contemplates signed agreements for the 12-month contracts, or at the very least, prior customer authorization." The regulator adds that written contracts would be the best way to prove customer intentions. But, conceding Bell's wish to limit costs, the commission says it could accept such alternative methods as: accepting a signed document as end-customer confirmation; oral confirmation verified by an independent third party; electronic confirmation through the use of a toll-free number; and, via the Internet.The ILEC could have saved itself all this grief had it employed one of the four options, Optel's VP of regulatory affairs and carrier relations believes. "We gave Bell, I don't know how many opportunities to demonstrate that these customers had indeed consented to a contract," Dave Jarrett told Network Letter, "and we never had any indication that Bell had any proof of their consent."The only proof the telco offered, Jarrett says, was that it monitors its call centre employees to insure they follow proper procedures. The firm provided no indication that outside bodies verified that customers were correctly recruited. All disputed clients are now considered to be operating on a monthly contract without termination charges unless Bell can prove the existence of an annual contract. The company has been ordered to issue revised tariff pages incorporating the four alternative confirmation methods. "Bell has not provided sufficient evidence that its customers are aware of the available options prior to selecting the 12-month MCP. The Commission considers that, in these circumstances, the tariff should be interpreted such that customers have consented to month-to-month agreements," the order states. Bell gained one small victory in the decision. Primus Canada had suggested the incumbent telco be forced to bill its local link service (LLS) clients the difference between the month-to-month rate and the rate Bell billed the customer before the signing of an annual contract. The rebate should be retroactive, Primus asserted. Bell countered that this would prejudice the vast majority of its annual customers who are not disputing the validity of their MCPs. Even those who do have complaints can resolve them through Bell's current procedures. Primus was one of three CLECs who filed in support of Optel. The CRTC agreed with Bell, saying if clients do not confirm they consented to a 12-month plan Bell would be entitled to recover underbilled month-to-month rates under article 18.1 of its terms of service. Another CLEC that supported Optel was Quinte Long Distance Corp of Carrying Place ON. Around the time the CRTC issued its decision, Optel purchased Quinte and its sister company Simcoe County Long Distance Corp. Jarrett says the timing was coincidental.

CRTC slams Bell Canada for its refusal to switch customers to Optel

News | April 10, 2000

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