Customer migration issues causing headache for Telus and CRTC

Bell Canada can't force an enterprise customer to renew an existing contract even if that client has to use the company's network beyond the end of the contract while the customer transitions to a new service provider's network, the CRTC ruled on September 22.In Telecom Decision 2008-92, the commission decided in favour of a Telus Corp. application, which had requested an interpretation of the rules surrounding Customer Specific Arrangements (CSAs). The issue grabbed some spotlight this summer after Telus sought an order from the CRTC in late August interpreting the limits of a CSA.The company has encountered difficulties migrating an enterprise customer, believed to be the Department of National Defence, from Bell's network to its own and wanted the customer to continue using parts of Bell's network until the transition could be fully completed.In a nutshell, Bell said no. The company indicated to Telus that if the customer wanted to use its network, then that customer would have to sign another CSA, extending the services arrangement on the same terms and conditions as the previous deal.In its September 22 decision, the CRTC noted that there isn't a requirement in the CSA or current regulatory rules "that would require the customer to enter into a new CSA with Bell Canada on the same terms and conditions as the existing CSA, including the minimum contract period and minimum revenue guarantee, in the event that the customer requires any or some of the services/circuits currently provided under the CSA after a certain specific date in the future."Ted Woodhead, VP of telecom policy and regulatory affairs at Telus, told Telemanagement that the decision clears up the matter in the sense that the customer isn't required to renew the contract under the same terms and conditions regardless of not requiring all of the services.Despite the CRTC's ruling on the matter, the situation for the customer still isn't clear as both sides have to return to the negotiating table to hammer out a short-term network usage deal. If the two parties can't reach an agreement, then Telus will have to return to the CRTC."Presumably the parties will go and negotiate and they'll be able to solve it. If not, we'd be looking to the CRTC to settle the whole terms and conditions issue," Woodhead said.Bell was unavailable for comment at press time.Enterprise transition issuesThe matter does raise some important questions when an enterprise customer migrates from one provider to another.In this specific case, Telus noted that "many thousands of services/circuits which need to be installed in hundreds of locations across the country" are required to transition the customer from Bell's network. The contract with Bell ends on December 15 and it seems unlikely that the network transition will be complete by that date.Mark Goldberg of Mark H. Goldberg & Associates made some interesting observations about this issue last month."In the commercial marketplace, one can't assume an incumbent service provider will roll out a welcome mat for a competitor taking away millions of dollars in revenue," he wrote. "Customers with complex networks should consider a transition period clause in their contracts."As the two companies threw legal texts and regulatory analyses at each other, one has to wonder what the customer's rights are in this type of situation. Obviously, it can't force a telco to continue providing service beyond the terms of a contract unless there is an agreement to do so. But the customer has to also be mindful that the losing carrier is likely going to want a premium for a short-term contract.When the matter came to light earlier this month, Goldberg pointed to the customer first philosophy. "At the end of the day, both service providers need to be guided by the principle of putting the customer first," he wrote.

Customer migration issues causing headache for Telus and CRTC

News | September 26, 2008

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