In February, the CRTC had issued a regulatory policy that required phone companies to install a “jack-ended demarcation device” on the first diagnostic service call to a home that was not so equipped. The Commission’s thought process was that it “would result in a consistent practice among ILECs and more equitable treatment of customers who currently do not have jack-ended demarcation devices as compared to those who do.”
It was a reasonable thought on the part of the CRTC. after all, those of us with such demarcation points can quickly determine whether a problem is outside of the house (ie. the telephone company’s problem), or inside the house (ie. the homeowner’s problem).
The problem with the CRTC’s policy set out in February was that the Commission had not asked for cost estimates associated with installing such a demarcation point coincident with the service call. As it turns out, it is a material amount.
So the CRTC agreed with the application to review and vary the original decision: “that there was substantial doubt as to the correctness of the regulatory measure to mandate the installation of a jack-ended demarcation device as set out in Telecom Regulatory Policy 2012-83.”
As a result, in a decision released earlier today, the Commission decided to give the phone companies the option to
- not install a jack-ended demarcation device and provide repair services for inside wire free of charge; or
- install a jack-ended demarcation device, at which time the ILEC may charge for the repair of inside wire during the same visit.
The Commission’s intent is for all homes to get demarcation points, without crazy up front costs being incurred by the carriers. Today’s approach provides a reasonable solution in the interest of customers, who will continue to receive free wire repair services if their phone company decides not to install a proper demarcation device.