OTTAWA-GATINEAU – In a decision that will may have more immediate impact on the telecom industry than last week’s voice over IP deregulation announcement by the Minister of Industry, the CRTC today approved local telephone rate ranges for incumbent telcos.
What is means is that ILECs (Bell Canada, Telus, SaskTel, MTS, Bell Aliant and the like) will now be able to submit to the Commission – confidentially – a low and high range of rates for certain services and as long as their pricing stays within that range, will not have to file for tariff approvals prior to altering its retail rates.
In the halls of Canadian incumbent telcos, this will likely be far easier and competitively beneficial and uncomplicated to implement rather than a rapid launch or high profile exploitation of access independent VOIP services.
"The decision should be of some benefit to consumers in providing the established telco with some greater flexibility today than we had yesterday within the regulatory process to adjust prices for certain services more quickly in response to customer needs and the competition," Mirko Bibic, Bell Canada’s regulatory chief told Cartt.ca "That being said, consumers would stand to benefit to an even greater extent if the Commission addressed some more fundamental issues, including other pricing constraints such as the bundling rules and the differential pricing/de-averaging rules."
"The Commission determines that rate ranges would generally be appropriate for local exchange and related services, with exceptions for certain services in recognition of the importance of services with regard to such matters as public safety, protection of privacy, and accessibility for persons with disabilities," reads the decision.
"Further, the Commission considers that it would generally be appropriate not to require the public disclosure of rate ranges. When an incumbent local exchange carrier (ILEC) establishes a new operative price point within an approved rate range, it will be required to issue revised tariff pages identifying that price point no later than the commencement of the business day that the change is to be effective, or on an earlier day if the change is to be effective on a non-business day.
"The Commission notes that the use of rate ranges will permit an ILEC to change rates within an approved range, at any time, without delay and without the requirement to file a tariff application and obtain Commission approval, thus reducing regulatory burden for both the ILECs and the Commission. The rate range regime outlined in this Decision will be subject to the Commission’s pricing constraints and safeguards in place for the larger incumbent telephone companies," it reads.
Telus spokesperson Shawn Hall agreed that while the decision does reduce the company’s regulatory burden and provide some flexibility, regulated local rates still stand in the way of true competition.
– Greg O’Brien
