Rogers, Telus, want CRTC to deny TekSavvy TPIA tariff changes

Rogers Communications Inc. and Telus Corp. are asking the CRTC to deny a request by TekSavvy Solutions Inc. to speed up the regulatory process by which new speed tiers are introduced and become available to wholesale-based internet service providers (ISPs). “The proposed remedies threaten the commission’s ability to set just and reasonable interim and final rates and do nothing to solve the underlining issues with the delays in approving wholesale high-speed access (HSA) rates, namely the resellers’ over-reliance on the regulator to solve their issues,” Rogers wrote in its June 2 intervention. In an April 29 Part 1 application, TekSavvy proposed that the CRTC “clarify that no tariff approval is required to introduce speed tiers that fall within an approved speed-band associated with an approved rate;” that it “approve all currently outstanding tariff applications introducing speed tiers which would fall into the foregoing category;” and that the CRTC “establish a default interim approval mechanism for competitor tariff filings that introduce new speed tiers or otherwise deviate from existing speed bands.” Under a 2006 decision, incumbents are required to offer the same speed tiers to third-party internet access (TPIA) customers and to avoid delays for TPIAs that “significantly prejudiced competition” in the retail internet market, according to TekSavvy’s Part 1. Distributel Ltd., in its own intervention supporting the proposal, noted that in the sometimes 224 days, more than seven months, it takes for approval to be granted, HSA service providers are already offering new service speeds on a retail basis. “As a result, HSA providers are effectively granted a head-start and the ability to offer the new speeds in the retail market on an exclusive basis, which, in turn, enables them to enjoy all the attendant benefits associated with first mover status,” Distributel wrote. Rogers said it is natural for delays to occur because of the constant applications and reversals of position by the resellers, while Telus added that TekSavvy ignored examples where competitor tariff application approvals were made by the commission in a timely manner. “While Telus agrees that delays in tariff approvals are problematic for the industry, it would be preferable if staff were allowed to focus their limited time on the tariff applications rather than on unnecessary Part 1 applications such as this,” Telus wrote. Rogers also argued that TekSavvy’s proposal will create further uncertainty because it does not clarify under what circumstances new wholesale HSA services might fall outside of the proposed automatic approval mechanism. It added that TekSavvy ignores the fact that there already exists a mechanism for the commission to expedite tariff applications through streamlined orders. Telus said TekSavvy’s proposal, if approved, will unnecessarily change the tariff process framework. “The problem that TekSavvy seeks to resolve is limited in scope whereas the remedy would affect all competitor tariffs,” the company wrote. The Competitive Network Operators of Canada (CNOC) and Public Interest Advocacy Centre (PIAC) both supported the application. CNOC argued that the current process eats away at a lot of commission resources and it also noted that the new policy direction issued to the CRTC states that it “should set interim and final tariffs more expediently, including by reforming the tariff-setting process and considering external expertise or international best practices.” “TekSavvy’s proposed relief strikes the right balance between ensuring adequate Commission oversight and streamlining approval processes to eliminate anti-competitive head-starts. At the same time, the implementation of TekSavvy’s proposed relief would result in significant regulatory efficiencies for the Commission,” CNOC executive director Geoff White wrote in the intervention. – Reporting by Jenna Cocullo at jcocullo@thewirereport.ca and editing by Michael Lee-Murphy at mleemurphy@thewirereport.ca

Rogers, Telus, want CRTC to deny TekSavvy TPIA tariff changes

News | June 3, 2022

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Rogers, Telus, want CRTC to deny TekSavvy TPIA tariff changes

News | June 3, 2022

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