Telus still pressing for information on Bell’s DND “exit tariff” following appeal court’s ruling

The saga pitting Telus Corp. against Bell Canada and the CRTC regarding access to information on the disputed Department of Defence (DND) contract continues, with the companies still sparring over sensitive pricing data. “We have to sort out what we are going to be allowed access to,” Ted Woodhouse, Telus VP of regulatory affairs, tells Tech Media Reports, referring to a Federal Court of Appeal decision allowing Telus to see documentation relevant to the Bell and DND relationship. Telus filed the appeal in May. Some background is in order. DND had a Global Defence Network Services contract with Bell Canada which went to open bid, resulting in Telus snagging the $213-million deal. However, Telus couldn’t complete the migration by the June 2008 handover date, which was one year after the contract was signed. Meanwhile, Bell provided service with a series of contract extensions, and has continued to charge. “Right now DND is virtually, if not completely, on our network,” says Woodhouse. “But we don’t know what happened during the in-camera hearing . We asked to be included and were denied. What we do know is that...DND would be responsible for monthly payments to Bell over a protracted period, for a service that they were not receiving from Bell, but from us.” In effect, Telus wants to know what arrangements Bell came to with the DND, but has been denied access to the in-camera hearing between Bell and the CRTC. “We don’t really want to seek the deep dark secrets of Bell,” says Woodhouse. “We just want to know what went on in that hearing. Once this motion is determined, we will have access, but Bell is essentially saying that our access will go beyond what Justice Sharlow ordered, and they want to curtail the people at Telus who can see the information.” Not surprisingly, Bell disagrees, and is concerned that Telus really wants to get after competitive information. “What Telus wants is access to our costing and pricing data,” says Jacqueline Michelis, a Bell spokesperson. “This is confidential.” Though the CRTC and Bell won’t comment, Telus is open about its suspicions. “Those rates, as far as we can tell, were about 50% more than what DND has been paying,” says Woodhouse. “In effect, Bell is imposing an exit tax on the customer.” But here Bell is clear, and so far the CRTC in agreeing to an in-camera hearing, seems to agree: costing and pricing data are confidential. “It is always treated as such,” asserts Michelis from Bell. The courts have generally been favourable to Telus’ position. In the August 31 decision, which was posted last week, Justice Karen Sharlow wrote: “I am compelled to conclude that the documents requested in relation to the Bell Canada decision are relevant and should be provided.” But Sharlow placed limits on access, which has resulted in the present tussle over confidentiality. “When Public works, through DND, decided to put out an RFP, they went to Bell, and said: If you are not the winning bidder, what will it cost for us to support the transition of services to an alternate provider?” says Woodhouse. “Bell came back and filed a tariff – this is why the CRTC is involved, it is a regulatory tariff.” A lot of Telus’ concerns are directed at the CRTC, claiming that it had never previously used final offer arbitration as a technique in telecom rate hearings. For its part, the CRTC takes the position that final offer arbitration was not used. “In addition to this appeal action, I have filed a review with the CRTC from that decision in August,” says Woodhouse, who suggests that the decision was too fast. “We want them to look at it again, on the basis that customers shouldn’t pay for services they don’t receive.” The court has acknowledged that Telus may be worried some of the compensation sought by Bell Canada might be borne by Telus. In this scenario, the actual amount that Bell has been charging becomes important. “I want to see what that number is,” says Woodhouse, “and to know on what basis the CRTC or Bell can justify it, because we expect that that number is very, very large.” The CRTC declined to comment on this story.

Telus still pressing for information on Bell’s DND “exit tariff” following appeal court’s ruling

News | October 27, 2009

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