Groups Set to Fight CRTC Phone-Bill Ruling

The Canadian Radio-television and Telecommunications Commission (CRTC) announced on February 16, 2006 that $625.7 million, the proceeds of excess billings of telephone customers, would be used to fund the expansion of broadband services to under-served markets, primarily rural and remote communities, and to facilitate access to services by disabled customers. The excess billings were the result of a 2002 CRTC decision which, in order to allow telcos to recoup costs in attracting new entrants and encourage competition, allowed telcos to set telephone rates higher than necessary. The telcos were required to place the additional revenue in deferral accounts. It is these deferral accounts that were in issue. The CRTC Chair, Charles Dalfen, noted that expanding high speed services has been an important federal government priority in recent years, although many rural and remote areas still are without it. "We think this is in the broader interests of the consumers." However, Commissioner Barbara Cram issued a dissenting view, stating that the plan could be "anti-competitive," rather than facilitative of competition, noting what she considers to be continued barriers to market entry for start-up providers. This decision has riled consumer advocacy groups who responded that the money should be returned to those customers who were over-billed. They argued that the money does not belong to the phone companies and that most subscribers will not benefit from the expansion of services many already receive. The consumer groups may appeal to the federal Cabinet (if the CRTC made an error), apply for judicial review (if the CRTC overstepped its bounds), or they may apply to the CRTC itself (if issues may have been overlooked). For a copy of the CRTC decision, see: http://www.crtc.gc.ca/archive/ENG/Decisions/2006/dt2006-9.htm Summary by: Katharine McGinnis