Call-Net calls for stricter enforcement of decisions as TELUS denies wrongdoing

Call-Net Enterprises Inc. executives are calling a recent CRTC bundling decision against TELUS Corp. a victory in "principle only," claiming that the regulator is failing to enforce its own judgments. The CRTC ruled last month that one of four bundling complaints dating back to November 2002 that were filed by Call-Net against TELUS was valid (Telecom Decision 2004-38), but Call-Net senior VP of regulatory affairs Jean Brazeau tells Network Letter that the incumbents have been allowed to continue to abuse the rules despite similar rulings. "I think that the commission has to enforce its rules. Time and time again, we get good decisions from the commission but what is lacking is serious enforcement on its part and that’s what concerns us the most," Brazeau says. "For example, a lot of the MSAs (master service agreements), not necessarily just from TELUS but other incumbents, are changed again and again, never meeting bundling rules, and still the incumbent can offer their service." He also complains that the CRTC gives telcos found in breach of bundling rules 60 days to comply. "They get 60 days to comply and then they change the bundle (and can still not be in compliance) but are still offering their services," he notes. "This has been going on for years. It’s time the commission stopped giving them such a long period of grace to comply with the rules. They should force them to comply immediately."In one of the four cases, that dealing with Petro-Canada, Call-Net successfully argued that TELUS had offered a substantially discounted service that was made contingent upon the telco acquiring the entire telecommunications expenditure of the gas company for a period of three years in contravention of Section 25 of the Telecommunications Act. Section 25 prohibits Canadian carriers from providing a telecommunications service in a bundle without a CRTC-approved tariff or unless the included services are all forborne. In examining the Part VII complaint against TELUS, the commission determined that the agreement "contains a combination of contractual terms and conditions that are advantageous to Petro-Canada and that would not be made available to Petro-Canada if the services were contracted individually…" The CRTC directed TELUS to either file a proposed tariff together with an imputation test for the services provided to Petro-Canada pursuant to the MSA within 60 days, or to cease and desist providing the services to the gas company within 60 days. TELUS VP of government and regulatory affairs Willie Grieve says that TELUS has not yet decided whether it will file for a tariff, but he denounces the claims of Call-Net."We have a few options under the decision and we just haven’t decided which one we’re doing. We’re looking at it right now from a business perspective and the best way to serve our customers," he tells NL. "We wouldn’t want to cut them off from the service. We just have to fix it up so the CRTC is satisfied." He adds, "I don’t think that you can accuse TELUS in any way of not complying with the rules so that we can somehow drive our competitors out of business. And that’s what they have been alleging about all the incumbents." Grieve finds it significant that in the three other cases ruled on in Decision 2004-38 that the CRTC found TELUS had not broken any rules. The CRTC found that the services provided by TELUS to Crystal Glass, BC Ferries Corp., and the Insurance Corporation of British Columbia did not constitute a bundle within the commission’s definition. "We’ve had competitors complaining about non-compliance, and them saying to the commission that all the ILECs are non-compliant and they’re not following the rules. So they lodge these complaints with the commission. I think it’s quite significant that on three of them, the commission said there is no problem, and on the fourth one there is just a minor problem that we think we can fix fairly easily. So they make such a big deal of it, and try to cast us in an unfavourable light at the commission. But I don’t just think that you can accuse TELUS in any way of not complying with the rules so that we can somehow drive our competitors out of business." But Brazeau says that the incumbents are able to bypass the system to shut the new entrants out. "They just package their bundles differently, change the service, and change the prices. That’s exactly what’s happened with Bell Canada and their MSAs they were supposed to have complied with bundling rules. They have been changing this service, changing the price of that service, modifying bundles and making this concession with the customer and meanwhile they don’t lose the customer. They keep the customer and we’re just shut out of the market." He also complains about the length of time it takes to get a decision from the CRTC after a complaint is filed. "It takes two to three years. Competitors are seeing their applications before the commission for two or three years. We’d certainly we’d like to see policy and competitive issues dealt with," he says.

Call-Net calls for stricter enforcement of decisions as TELUS denies wrongdoing

News | July 7, 2004

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