No break for Rogers on wireless code’s application to business accounts

The CRTC is not giving Rogers Communications Inc. any leeway on the wireless code's applicability to accounts provided to employees of large companies in cases where the individual is responsible for a portion of the costs. The commission said in a decision Friday that it has denied an application from Rogers to review and vary a decision it made in October that clarified that code rules — such as allowing customers to walk away from a contract with no penalty after two years — applied in cases where users paid some of their own cellphone costs, even if the accounts were set up in connection with a medium or large businesse. Rogers was also denied a request that certain accounts set up between Dec. 2, 2013 and Oct. 8, 2014 not be subject to the wireless code, on the grounds that they are likely in contravention of the code and were made when Rogers had a different understanding of the rules' applicability. Rogers "failed to demonstrate that there is substantial doubt as to the correctness" of the explanation the CRTC made about how the code applied to business accounts, the CRTC said in its decision Friday. The company said in a letter to the CRTC in November that it was "surprised" to find that the code applies to business accounts of individuals in cases when the terms were negotiated by enterprises. It said the CRTC explained when the code was released that it would apply to small businesses, but not larger organizations, because "these customers are better able to negotiate agreements, including pricing, due to their size and purchasing power." As a result of its new understanding of the code, Rogers said it came to the revelation that "several" accounts with enterprises contained provisions not allowed under the code. Rogers had said a key issue making these contracts non-compliant were three-year terms and provisions for early-cancellation charges. On Friday, Rogers spokesman Kevin Spafford said in an email: "We’ll comply with the decision, which clears up a technicality affecting a small number of customers on plans as employees of our corporate clients. The vast majority of our customers are already on two-year contracts, so this doesn’t affect them. We support the wireless code and are focused on improving the customer experience and delivering even more value for customers." The CRTC said Friday that the directive it issued in October did "not create any new principles or obligations." It said there was "no merit" to Rogers' argument that information within the code itself does not indicate that it applies to "corporate individual plans," in which an employer negotiates rates with a carrier, and then provides employees with a stipend to cover the costs, or "employee purchase plans," which allow employees or members of an organization to obtain wireless accounts at preferred rates. The CRTC said both are subject to the code because they "constitute contracts between an individual and a ." The CRTC's decision noted the Public Interest Advocacy Centre (PIAC) and Quebecor Inc. filed interventions opposing Rogers. It said PIAC's position was that granting Rogers exemptions from the code "would not benefit customers or competition, nor promote the Canadian telecommunications policy objectives" as set out in the Telecommunications Act. Quebecor said Rogers' request was "unfounded" because the commission's decision in October was "simply a restatement of facts from the Wireless Code policy," the CRTC said. Howard Maker, the commissioner for complaints for telecommunications services, said in a press release Friday: "Today’s decision brings added clarity to our job.” The CRTC made the clarification on how the code applies to the business accounts in response to a request from Telus Corp. In a separate proceeding before the Federal Court of Appeal, Rogers is a part of consortium of mobile providers, including Telus and BCE Inc., that is challenging the wireless code's applicability to all accounts under its jurisdiction as of June 3 this year, even if they were signed before the code came into effect on Dec. 2, 2013. Many customers on three-year contracts, at that time, will be able to walk away from their carriers at no charge if they have completed at least two years of the agreement. This case was heard last November and a decision is still pending. — With reporting by Derek Abma at dabma@thewirereport.ca and editing by Anja Karadeglija at akarad@thewirereport.ca

No break for Rogers on wireless code’s application to business accounts

News | May 15, 2015

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