Rogers moving forward with appeal of CRTC’s choice of Quebecor MVNO rates

The Federal Court of Appeal has granted an application from Rogers Communications Inc. to appeal a decision by the CRTC involving a dispute over wholesale access rates between Rogers and Quebecor Inc. In its decision, issued in July last year through final offer arbitration, the CRTC selected Quebecor’s proposed wholesale data access rate over Rogers’, stating that it would better maintain “the ability and incentives for both parties to invest while providing with the ability to expand into new geographic areas and grant it more pricing flexibility to better discipline rates in the retail market for the benefit of all end-users.” While Rogers has maintained that the selected access rate is “materially lower” than the one it proposed, the telecom’s appeal also accuses the CRTC of denying Rogers’ rights to “procedural fairness and natural justice.” Rogers first requested leave to appeal, with BCE Inc.’s support, in August 2023. It was granted by the appeals court on Aug. 16, 2024. According to the commission’s decision, Rogers’ proposal “advanced a hypothesis on appropriate profit for ,” an approach the commission disagreed with, among “other elements of methodology.” “Consequently, the commission made some conservative adjustments to inputs,” it said, to help it determine which offer to choose. This resulted in “a cost per gigabyte that was similar to offer.” Rogers alleges, however, that the CRTC refuses to explain what those adjustments were. “Rogers specifically asked for particulars on ‘which items were adjusted, how they were adjusted, or what the final cost-per-gigabyte was after those adjustments were made,’” but the commission said it “cannot supplement the reasons in the or provide additional rationale,” alleged Rogers. Not only did the CRTC not explain the adjustments, but it also did not give Rogers any notice of its intention to apply them, the company argues. “Key assertions and supporting analysis” submitted by Quebecor during the arbitration process were also “completely redacted,” which Rogers says prevented it from giving any meaningful response. Despite the company’s request to see the unredacted documents on a confidential, “external counsel and expert’s eyes-only” basis, the CRTC declined, citing concerns that it would delay the proceeding, alleges Rogers. Rogers also asked the CRTC to order Quebecor to provide a copy of a document “relevant to its position on data rates,” previously filed with the Competition Tribunal. This request was also denied. “The commission failed to consider the public interest in providing Rogers with a full and fair opportunity to know the case to meet and respond to it,” said Rogers. “Rogers’ reply to Quebecor’s case was significantly limited by the heavy confidentiality redactions in Quebecor’s materials.” “Each of these denials of procedural fairness and natural justice seriously undermined Rogers’ participatory rights before the commission and resulted in an arbitration decision based on an incomplete and deficient record,” the company argues. “They each give rise to reversible errors of jurisdiction.” Rogers accuses the CRTC’s decision of being inconsistent with the “just and reasonable” rate-setting standards of the Telecommunications Act. As a result, it is seeking to have the CRTC’s decision set aside and the matter sent back for reconsideration with a directive for the commission to set new MVNO rates. – Reporting by Phalen Tynes-MacDonald at pcreed@thewirereport.ca

Rogers moving forward with appeal of CRTC’s choice of Quebecor MVNO rates

Court |
By Phalen Tynes-MacDonald
| September 10, 2024

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Rogers moving forward with appeal of CRTC’s choice of Quebecor MVNO rates

Court | By Phalen Tynes-MacDonald | September 10, 2024

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By Phalen Tynes-MacDonald
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