Are systems holding you back?
An order from the CRTC yesterday caught my eye. There were two interesting issues that arise – the ability to adjust rates retroactively and the challenges of billing and customer information systems.
The situation was that Bell Aliant had planned to raise the price of its Hospital Patient Telephone Service last July 1. Due to an oversight, the changes didn’t get put into its billing system and to fix it, the costs of modifying the systems exceed the revenues that would be generated. So, Bell Aliant asked the CRTC to effectively reverse the price increase retroactively.
Yesterday’s Order was an interim rate decision; the CRTC has usually found that it cannot adjust rates retroactively, where the tariff had already received “final” approval. The CRTC will deal with the issues associated with the final ratification later – whether the rates can be adjusted retroactively; whether the old price needs to pass a price floor test, etc. While it sorts through the legal issues, the interim rate order stops the amount from continuing to accumulate.
The other interesting issue is that Bell Aliant apparently cannot easily adjust the prices on a single rate element. Does this indicate that there may be a significant capital requirement in the future to replace legacy billing systems?
We have looked at operational and billing support systems in past sessions at The Canadian Telecom Summit. This year, we look at the issues from the perspective of Customer Experience Management – leveraging systems to increase customer loyalty and service provider revenues. That session, featuring executives from Sybase, Microsoft, IBM, Redknee and CGI, will be taking place on June 7 at The 2010 Canadian Telecom Summit.
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