Industry Committee calls for stricter timelines on CRTC rate-setting procedures

The House of Commons Industry committee is recommending that the government direct the CRTC to revise its process for the implementation -- and subsequent appeals -- of new rates so incumbent telecom companies "stop using the appeals process as a delay tactic." Specifically, the Industry committee recommends that the CRTC implement an interim rate that is exactly halfway between older rates and newly announced rates under appeal, and that it respect a "strict" time limit to arrive at a decision. The Industry committee made the recommendation in a report on the affordability and accessibility of telecommunications services in Canada, tabled Monday evening, and on the heels of a contentious CRTC decision to reverse an earlier 2019 decision that drastically cut wholesale access rates for independent internet service providers (ISPs). The report criticized the appeals process used by incumbents throughout the wholesale rates process and said that the tactic ultimately hurts customers. The "rate-setting process," the committee wrote in the report, "entails a risk that TSPs that disagree with the CRTC’s decision use the appeals process as a delay tactic. This practice puts stakeholders in favour of the decision in a tough position because they need to continue their operations in an uncertain period of unclear duration." "The Committee does not believe these practices are beneficial for end users. It is of the opinion that a mechanism should be implemented to prevent the appeals process from being used as a delay tactic." In the Monday report, the Industry committee also wrote that it is "very frustrated with the CRTC’s decision to cancel the new wholesale rates." The report argued that the wholesale rates decision -- along with the wireless review decision that declined to establish a broad-based mandate for mobile virtual network operators (MVNOs) -- does not lead to more affordable and accessible telecommunications in Canada. "They certainly do not advance this objective as much as they should, and the Committee believes that the CRTC should do more to address affordability," the report said. "The Committee believes that the federal government should intervene to encourage the CRTC to put in place decisions that promote specific objectives, including affordability and accessibility." The report also called for a new government directive to the regulator, directing it to "connect all Canadians quickly while maintaining a level playing field among telecommunications service providers, particularly between incumbent and independent providers." Aside from CRTC procedures, the committee made several recommendations affecting the end-user experience. The committee called on the CRTC to require TSPs to make available information on the "usual" download and upload speeds end-users can expect during peak periods, similar to the goal of Bill C-299, recently introduced by Conservative MP Dan Mazier. The information, the committee wrote, would allow consumers to "make more informed purchasing decisions based on accurate and transparent information, thereby improving the industry’s competitiveness overall." The committee also called on the CRTC to establish an "affordability standard." "Since no standards have been established to determine what constitutes an affordable rate, stakeholders in the telecommunications sector do not have any guidelines to inform their affordability initiatives," the committee wrote in the report. "The Committee therefore believes that establishing such a standard could help guide the activities of various stakeholders, particularly in a context where prices may vary significantly from one region to another." — Reporting by Michael Lee-Murphy at mleemurphy@thewirereport.ca and editing by Hannah Daley at hdaley@thewirereport.ca

Industry Committee calls for stricter timelines on CRTC rate-setting procedures

News | June 22, 2021

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Industry Committee calls for stricter timelines on CRTC rate-setting procedures

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