CRTC fines Bell for delaying access to support structures

The CRTC has imposed an administrative monetary penalty (AMP) of $7.5 million on BCE Inc. for violating the Telecommunications Act and delaying the network deployment of its main competitor in Quebec. According to its Wednesday decision, the incumbent was fined $2.5 million each for three individual violations against Quebecor Inc.’s Videotron, even though Bell argued they were “good faith errors”. “The commission considers that Bell Canada’s argument that an AMP would not be appropriate because the violations… were not the result of intentional conduct on its part should not be reconsidered in this proceeding. The commission notes that Bell Canada’s intent was considered in finding that it had granted itself a preference and imposed an undue and unreasonable disadvantage on Videotron,” the commission wrote in its decision. In June 2020 Quebecor filed a Part 1 application with the commission alleging that Bell was delaying access to its support structures, thereby granting itself an undue preference in violation of the Telecommunications Act. Videotron accused Bell of unreasonable delays in responding to its requests for permits and access to its structures, not respecting construction standards, as well as offloading costs to replace outdated or deteriorated structures onto those requesting access. Small telecommunications providers, the Canadian Communications Systems Alliance (CCSA) and Rogers Communications Inc., filed interventions supporting Quebecor, saying they had experienced similar issues gaining access. In April 2021 the commission found that Bell installed its own equipment on the structures during the same period in which Videotron was denied access, violating the Telecommunications Act. At the same time, the commission issued a notice of consultation on whether or not it should fine Bell and how much the fine should be. “Through the denial of access, even temporary, and unreasonable delays in processing Videotron’s permit applications, managing the required make-ready work, and deploying its own fibre-to-the-home (FTTH) network on structures with irregularities, all of which caused Videotron’s permit applications to be denied, Bell Canada granted itself a preference and imposed an undue and unreasonable disadvantage on Videotron,” according to the commission’s documents. According to the Wednesday decision, Bell argued that the commission should not impose monetary penalties because it made “good faith errors” in the deployment of FTTH on poles where access was delayed or denied. “Bell Canada submitted that due to the confidentiality of wholesale client information, its FTTH teams did not, and could not, know whether an applicant was currently awaiting approval at a particular pole. It argued that, therefore, its FTTH deployment on support structures where Videotron was denied access was not intentional or borne out of an intent to give itself an advantage,” according to the decision. The incumbent also said that technician safety and other construction issues further delayed Videotron’s permit requests “and the fact that infallibility cannot be the standard for pole owners that face thousands of construction projects on a yearly basis, each with unique considerations and challenges.” Bell argued that it too faces construction delays. Rogers and Videotron advocated for the monetary penalty, arguing that Bell support structures and enhanced telecommunications networks are public goods or in the public interest, therefore, enforcement measures are needed to deter future violations of the act. Videotron called Bell’s remedies to the situation “nothing more than window dressing” according to the commission’s decision, while Rogers called Bell’s actions “reprehensible.” Rogers also argued that the Quebec government had to intervene to try to streamline provincial initiatives to bring broadband to its rural areas. The CCSA argued that they face the same types of barriers by Bell “on an ongoing basis,” therefore, penalties should be imposed. The Community Fibre Company (CFC) added that service providers operating in Ontario were denied access to Bell’s support structures. The Independent Telecommunications Providers Association (ITPA) submitted that “since this would be the first AMP to be imposed relating to support structure violations, the commission should send a clear message of deterrence stating that such behaviour will no longer be tolerated.” The commission, in its Wednesday decision, said it had “concerns as to the efficacy” of Bell’s steps to streamline access to its support structures. “These measures will only result in reduced delays for 20 per cent of the poles subject to access requests held up by make-ready work. In light of the commission’s concerns regarding competitors’ access to Bell Canada’s support structures, the commission would have expected Bell Canada, as an owner of support structures, to have demonstrated that it is developing, or plans to develop, measures to reduce delays and streamline access to a larger proportion of its poles,” the CRTC wrote. The CFC and Videotron suggested that the maximum amount of $10 million for a first violation should be imposed on Bell. The ITPA and CCSA also wanted to impose the maximum amount allowable under the act, arguing it would be a “negligible” amount for Bell to pay because it makes billions of dollars per year. The commission ultimately decided to lower the AMP amount because this is a first violation for Bell with regard to support structures, and “despite having some concerns as to the efficacy” of its remedies “the commission considers that the fines should, at least in some cases, reduce delays in accessing poles and reduce, to some extent, the likelihood of future non-compliance.” – Reporting by Jenna Cocullo at jcocullo@thewirereport.ca and editing by Michael Lee-Murphy at mleemurphy@thewirereport.ca

CRTC fines Bell for delaying access to support structures

News | June 15, 2022

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CRTC fines Bell for delaying access to support structures

News | June 15, 2022

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