Cable / Telecom News

$650 million may not get spent soon as court will hear appeal


OTTAWA – The consumer groups who appealed the CRTC’s February decision directing monies in so-called "deferral accounts" to rural broadband builds learned today the Federal Court of Appeal has granted them leave to appeal the decision.

The CRTC directed Canada’s ILECs to charge customers a little extra and deposit the money in accounts which in February the Commission said it would be best spent on developing the broadband infrastructure in rural markets.

There is about $650 million in the bank and consumer groups, composed of the National Anti-Poverty Organization (NAPO) and the Consumers Association of Canada (CAC), sought leave to appeal the CRTC Decision. They want the money given back to Canadians.

"We are pleased to have a chance to convince the court the money should be returned to consumers," said Michael Janigan, general counsel for the Public Interest Advocacy Centre (PIAC) which represents the consumer groups in this proceeding.

The issue was also a hot topic at last week’s Canadian Cable Systems Alliance as rural cable operators worry that the money will be used in areas where they already provide broadband.

A hearing and decision is expected in 2007.

www.piac.ca