Consumer protection agency not likely until next decade

Those believing that the government would move swiftly to create an independent telecommunications consumer protection agency will have to wait longer than they may have expected. What was, according to Industry Minister Maxime Bernier, to take a couple of months is now going to take more than three years. The new consumer telecom protection agency is to become the main complaints and disputes resolution mechanism in the newly deregulated telecommunications services market. The CRTC revealed the significant delay in its latest three-year working plan released last week, noting that it would "collaborate closely with industry stakeholders to bring about the prompt establishment of a consumer protection agency, as mandated by the Government of Canada's order of April 4 of this year." But according to the plan, a proceeding to establish a telecom consumer protection agency isn't scheduled to begin until 2009/2010 - the last year of the three-year working plan. The first two years are to "monitor the development of Telecom Consumer Protection Agency."Even before the release of the agenda, some people within Industry Canada hoped the agency would be created quickly. In an April 4 conference call with media, Len St-Aubin, director general of the department's telecom branch, expressed his belief that this could be done in relatively short order. "We're hopeful that the industry can get it set up fairly quickly in consultation with the CRTC and consumers and other stakeholders," he said in response to a question from Network Letter. While the CRTC indicates a proceeding to create the agency won't start for another two or three years, recently appointed commission chair Konrad von Finckenstein appears to believe it can be done this year. Noting that the creation of this new agency isn't "plowing new ground" he said during a speech to the 2007 Telecommunications Invitational Forum, "I think it would be ideal if we could have the new consumer agency up and running once the first forbearance orders become operational, that is, once the ILECs meet the competitor quality of service standards." Until such time though, the commission itself will have to handle consumer complaints. Under the April 4 order from the minister, the CRTC will have to report back to Governor-in-Council at least once a year with the first report due on April 6, 2008. But as the industry is well aware, setting up a self-governing, industry-led and funded body is no easy task. One only needs to look for our National Do-Not-Call Registry to see the evidence. The creation of the DNC has stalled because industry can't seem to agree on how to fund or operate this much-needed consumer protection mechanism. Experience dictates that even if a proceeding to set up the agency begins in the 2009/2010 time frame, it will be much longer before the agency is up and running. Following the release of a public notice, it could take more than a year before the commission reaches a decision. Even with a late-2010 ruling, it will be well into 2011 or later before the CRTC hands over its complaints-dealing duties to the new agency. Perhaps Minister Bernier should have consulted the CRTC - the organization he was ordering to set up the independent telecom consumer protection agency - before making such a bold statement that the new agency "will be set up maybe in a couple of months from now."

Consumer protection agency not likely until next decade

News | April 30, 2007

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