A first attack on sytem access fees

Last December, Yak filed two applications with the CRTC to “protect Canadians against consumer gouging.” Today, the CRTC ruled on those applications.

At issue was a new network access fee that TELUS introduced for those local customers that had TELUS as their primary long distance carrier but had not subscribed to a calling plan. Yak characterized the fee as a fee associated with local service, since it applied whether or not long distance calls were made. The CRTC agreed and has ordered TELUS to refund the fee to any subscriber that did not make calls over the TELUS network during a billing period.

The CRTC noted that the definition of local service

consists of the provision of service and equipment necessary for telephone communication between customers in the same exchange and between such customers and the message toll office or facilities for that exchange. On that basis, the Commission finds that access to the long distance network is included in [TELUS]’s local exchange service

It is the first time that the CRTC has come down on system access fees. At issue in this instance was the fact that the fee was applied to non-forborne areas as well as forborne. In the case or areas where local rates are still regulated, the CRTC has to approve any change in local rates. In the rest of the territory, there is a price cap in effect that was likely exceeded.

The CRTC made a pledge last year to watch out for consumers in a forborne environment. Today’s decision affirms the CRTC’s commitment to that promise.

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