PIAC files complaint against Telus LD charge

The Public Interest Advocacy Centre (PIAC) has joined Yak Communications Inc. in fighting Telus Corp.'s $2.95 surcharge on local service customers that don't subscribe to a long distance plan from the ILEC. PIAC filed its complaint on January 4, one month after Yak filed two separate applications with the CRTC on the matter. PIAC argues that the LD access fee shouldn't be allowed in either forborne or still-regulated areas of the country. The advocacy group suggests that the surcharge amounts to nothing more than a veiled attempt to increase the price of stand-alone local residential service, something that was prohibited by the commission in the local forbearance decision (Telecom Decision 2006-15). PIAC also notes that the fee constitutes an unauthorized rate increase for customers whose local service is still regulated by the price cap regime. Telus introduced the LD access fee in November 2007 and told customers that the surcharge would be used to "maintain our capability to provide reliable, high quality long distance service to all clients at all times, through infrastructure investment in long distance facilities, management of telephone carrier relationships and ongoing operational and business development expenses for long distance service." In response to a number of complaints from consumers regarding the newly introduced surcharge, the CRTC initiated its own investigation last November. The regulator asked Telus to explain the LD access fee and why it should be allowed to introduce it. In its November 28 response, Telus indicated that the service in question is deregulated and, therefore, the company doesn't need prior approval to implement such a fee. With respect to levying the surcharge on customers who don't subscribe to a Telus LD plan, the company compared the current situation to that of the electrical industry. "The long distance network access charge is similar to the transmission charges that are levied by electrical utilities and which charges apply whether or not the customer does, in fact, consume any electricity from the service provider in any given billing period. Further, this charge is similar or analogous to monthly charges for dial-up Internet access services or cellular services, which apply whether or not the customer originates or terminates traffic over the facilities and/or networks supporting these services, and reflects the fact that the network is standing ready to originate or receive voice or data traffic," reads the company's response. Since Yak filed its two applications on December 3, 2007, the commission has combined both into a single proceeding in hopes of settling the dispute within eight months. It's unclear at this point if the CRTC will roll the PIAC Part VII into this same proceeding, but it seems likely given the similarity of the applications. Comments on the Yak applications were due January 18, but with the recent filing of the PIAC petition, Telus is requesting the deadline be extended until January 31.

PIAC files complaint against Telus LD charge

News | January 10, 2008

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