OTTAWA – Telcos will soon be allowed to change their phone rates without the need for prior CRTC approval. The commission announced that effective October 6, 2008, it will be moving to a more efficient and less burdensome procedure for retail tariffs. Once implemented, the traditional telephone companies will be able to change most of their telecommunications rates without the CRTC’s approval. For regulatory purposes, most of these changes will now take effect on the day they are filed.
"While the new procedure eases the regulatory burden for traditional telephone companies, it does not permit them to exceed the pricing limits previously imposed by the commission for regulated services," said Leonard Katz, the CRTC’s vice-chairman of Telecommunications. "This change enables the traditional telephone companies, as well as the CRTC, to streamline their operations without any impact on consumers."
In most cases, companies will only have to certify that the tariff change complies with the CRTC’s existing pricing rules. However, the commission will retain its powers to take corrective action should it find that a company has not abided by these rules.
In other circumstances, tariff applications will be approved under the new procedure without the need for the commission to issue orders or decisions, unless an objection is received or the Commission decides to intervene.
Under the previous approval mechanism, applications filed with the CRTC to amend rates usually included supporting evidence, such as detailed costing studies and complex calculations. The CRTC would then issue a determination in the form of an order.
