MONTEBELLO, Que. – Canada’s telecom industry must move swiftly to create the new consumer protection agency the federal government has called for or face the prospect of new legislation governing how the companies deal with miffed customers.
In a speech Wednesday at the 2007 Telecommunications Invitational Forum (read: no media) in Montebello, CRTC Chairman Konrad von Finckenstein told delegates that he wants to see the industry establish this new consumer agency so that it’s up and running when Canada’s incumbent telcos are forborne from regulation, which is likely to begin happening late this fall.
Part of the federal government’s policy directive to the CRTC, which overruled much of the Commission’s 2006 local forbearance decision, directed the telecom industry to come up with an organization that would afford somewhere for consumers to go if they felt their telecom complaints were not being heeded.
"I think it would ideal if we could have the new consumer agency up and running once the first forbearance orders become operational, that is, once the ILECS meet the competitor quality of service standards," said von Finckenstein.
That means by this fall, essentially.
The chair recognized that this new body will be a challenge for the industry – a challenge some have said to Cartt.ca off the record that they do not wish to take up… or more specifically, to pay for.
"I believe that the industry is going to face its own kind of communications challenge as we move into this new era of lighter regulation. It is going to have to send out a convincing message that it is capable of policing its own behavior," von Finckenstein explained.
"The government has thrown down a challenge. Using our powers under Section 24 of the Telecommunications Act – particularly our power to approve tariffs for essential services – we will do everything we can to meet the challenge. It will be particularly important to me to see that failure to comply with the agency’s code of conduct, and with its rulings, will be dealt with in a meaningful way.
"In my view, there is nothing about this proposed agency that involves plowing new ground. A similar organization was established when long-distance services were deregulated. And other jurisdictions, Australia being one notable example, have similar regimes in place," he added.
The CRTC clearly wants to act but the new body has to be built and bankrolled by all Canadian telecom firms (that means you, too cable guys and VOIPsters). And if the companies don’t act – and soon? Von Finckenstein is prepared to act on his own, if necessary.
"If we are not, within a reasonable period of time, successful in launching an agency that meets the standards set by the government, then we face an alternative that neither we nor, I’m sure, the industry would like to see. That is, we face legislation to protect the interests of users," he explained.
"If adequate progress is not made, I would have no choice but to ask for legislation along the lines of the Australian model, i.e., mandated ‘voluntary codes.’
"On the other hand, if the agency is up and running and successful, I don’t see any reason why its mandate could not be expanded to include complaints from customers in non-forborne areas. In such an eventuality, the whole retail rate adjustment plan regarding failure to meet quality of service standards would become redundant, and the Commission would have no hesitation to abolish the current regime."
