Public Works asks CRTC to intervene on DND migration dispute

The ongoing saga of the Department of National Defence's migration from Bell Canada to Telus Corp. has taken another twist with the federal government now engaging the regulator on the issue.Last week, Public Works and Government Services Canada (PWGSC) filed an appeal with the CRTC asking it to once again intervene expeditiously in the matter. Specifically, the government department argues that the rates Bell wants to charge DND after the latest contract extension expires are unreasonable and are in violation of section 27 of the Telecommunications Act.And there appears to be little uncertainty that Bell is, in fact, playing hard ball with the federal government over the terms and conditions of DND's continued use of its network. PWGSC's appeal clearly shows that Bell is unwilling to let DND use its network unless it signs a new five-year agreement with a minimum revenue guarantee.All of this comes after a previous CRTC decision that essentially told Bell and DND/PWGSC to go back to the bargaining table. It's clear those negotiations haven't brought the two sides closer to an agreement.PWGSC said in its appeal that it has thrown in the towel, will no longer negotiate with Bell and has put the matter in the hands of the CRTC. "In light of Bell's position, PWGSC considers that further attempts to negotiate will not result in an agreement that will ensure both fair compensation to Bell and a fair price to Canadian tax payers," reads the appeal.PWGSC argues that Bell's proposal is unreasonable and violates section 27 of the Telecommunications Act, by insisting on a five-year commitment and minimum revenue guarantee of about $100 million "regardless of the amount of service required or the duration those services are required.""Contrary to sub-section 27(2) of the Telecommunications Act, Bell's pricing proposal unjustly discriminates against and unduly disadvantages PWGSC in that it requires the payment of fees for services that may not be required, and greatly exceeds the prices charged to other customers for similar, albeit not identical, services," PWGSC writes in its appeal.The government procurement department wants the CRTC to decide if Bell's proposal violates section 27 of the Telecom Act, and if so, determine just and reasonable pricing. If the commission can't determine just and reasonable pricing, then PWGSC says it should direct Bell to return to the negotiating table and that no minimum revenue guarantee or contract period apply.PWGSC also sent its appeal to Telus, MTS Allstream, and Rogers Communications as interested parties.The CRTC quickly responded to the appeal by firing off a letter to all parties, requesting comments as to why this matter should be dealt with on an expedited basis.Network Letter will continue to monitor develops in this story.

Public Works asks CRTC to intervene on DND migration dispute

News | 11/19/2008 4:46 pm EST

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