The CRTC has set the criteria in place for opening up Local Forbearance. Allstream and Videotron are proclaiming that the Decision is balanced – which is usually a coded language that the scales are tipped in their favour. Allstream’s press release is entitled “CRTC Decision Strikes a Balance Between Deregulation and Customer Protection”. The headline for Bell’s press release is “Canadians Denied Benefits of Open Competition”.
So much for balance. We used to say that the measure of a truly balanced Decision is having the ILECs, the new entrants and the consumer groups all kvetching. That’s balance.
The rules are somewhat complex but fairly clear – nothing like the ‘Hopelessly Complex’ TPR. ILECs will still need to apply on an geographic region basis and wait for determinations before they can operate without having to file local tariffs.
The CRTC has said in a conference call that the approval process should be a fairly speedy process – months, not years. Keep in mind that this proceeding took two years from the time of Aliant’s initial application.
By the way, Aliant’s application for local forbearance was denied. Not because of market share losses not being enough (25% is the benchmark), but rather because Aliant was not compliant with a few of the other criteria – less than stellar performance in providing service to their competitors and the lack of a wholesale DSL tariff. As a result, don’t expect regulatory relief for Aliant before 2007.
I understand the logic behind the Commission’s insistence on performance on wholesale essential services, but it’s not clear to me how the wholesale DSL tariff is really a pre-requisite. Especially in Aliant’s territory where the competition is cable-based, it is hard to see why Aliant should have to develop a wholesale DSL service for non-existent wholesale customers when a cable company is using their own facilities for high speed internet.
At least the rules are now clear.
What isn’t as clear is how the ILECs will respond, ie. will the appeals be to the courts or to cabinet or both.