OTTAWA – Bogged down by having to examine every case individually, the CRTC is considering spelling out which adverse events would result in changes to telco’s retail quality of service (Q of S) rate adjustment plans.
“The requirement for a case-by-case analysis to determine whether an event is adverse has added additional time and a level of complexity to processing Q of S exclusion applications. The adoption of a force majeure clause that identifies what events are adverse would reflect common commercial practice and increase the timeliness of decisions,” the CRTC states in Telecom Public Notice CRTC 2007-9.
In 2005, the CRTC ruled a determination with respect to each adverse event, whether a natural disaster, act of terrorism, or labour disruption, would be made on a case-by-case basis with regard to modifications to Q of S plans.
But the commission on Wednesday initiated a public proceeding to consider whether, for the purposes of consideration of exclusions from the calculation of rate rebates for failure to meet prescribed retail and competitor Q of S standards, natural disasters, acts of terrorism and labour disputes should always be considered as adverse events.
The CRTC warns though that if a force majeure clause is adopted, a case-by-case analysis would still be needed to determine if there was a casual link between the adverse event and the retail or competitor Q of S results as well as the proposed adjustment to those rates.
Comments are due by July 3.
