Bell to challenge CRTC’s usage-based billing decision

Bell Canada and Bell Aliant say they aren’t pleased with the “asymmetrical” nature of the CRTC’s recent decision allowing usage-based billing. In a letter to the CRTC co-written by Denis Henry, vice-president of legal, regulatory and government affairs with Bell Aliant, and David Palmer, director of regulatory affairs with Bell Canada, the companies argue that the decision favours cable companies over telecommunications companies like Bell. “The commission has established new regulatory measures that, not only are asymmetrical in their application, but which interfere with competitive market forces and, with respect to the precondition regarding the small minority of the companies’ retail customers who continue on grandfathered flat-rated plans, cannot be said to be efficient and proportionate to their purpose,” says the letter, dated May 25, 2010. CRTC telecom decision CRTC 2010-255 said Bell could implement usage-based billing for its wholesale Internet customers, but only once all of its retail customers are also on a usage-based model. “No such requirement was ever imposed on cable companies during the course of their introduction of UBB rating plans for their TPIA services,” the letter says. The CRTC decision says Bell can wholesale Internet purchasers a flat fee and implement monthly usage limits per customer. Users who surpass the limit would be charged per gigabyte. Under the CRTC's pricing scheme, customers who download more than 60 GB in a month are required to pay an extra $1.125 for each additional GB. Customers who download more than 300 GB in a month pay up to $22.50 in extra usage charges plus an extra 75 cents per GB. Bell argues that the wholesale usage-based rates that the CRTC suggested in its decision represent a 25 per cent discount from the company's retail rates. But the cable companies, Bell argues, are charging the same for wholesale usage-based Internet services as they are for their retail usage-based services. "As a result, the Commission approved usage rates for the Companies that reflect a 25% discount to their retail rates, while allowing the cable companies to strike usage rates that merely match their retail usage rates," the letter says. “The companies therefore conclude that, in the setting of wholesale rates, the commission has adopted much more stringent, empirical tests for their proposals than are applied to the cable companies’ services,” Bell says. Bell added that it will submit an application to review and vary the CRTC’s usage-based billing decision in the coming days. Usage-based billing will also be discussed at the commission's hearings next week on wholesale access to high-speed Internet.

Bell to challenge CRTC’s usage-based billing decision

Brief | May 27, 2010

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Bell to challenge CRTC’s usage-based billing decision

Brief | May 27, 2010

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