MONTREAL – On Thursday, Videotron filed an application with the CRTC to review, vary and stay a recent decision which said the company's Unlimited Music service violated the tenets of network neutrality because it did not count the data used by customers enjoying the service against their data plans – a practice better known as zero rating.
In a press release, the company said it needs the stay of the decision“in order to minimize the impact on customers who are already using the service”.
In a short statement, the company said that it “would like to work with the CRTC”, and referenced the Commission’s April 20 decision ordering it to stop zero-rating Unlimited Music by July 19, 2017. That ruling was part of a larger Commission effort to effectively ban differential pricing practices in Canada.
“Videotron is asking the CRTC to permit measures that would allow customers who are enjoying the service launched two years ago a smooth and advantageous transition”, continues the statement. “Videotron shares the CRTC’s commitment to putting Canadian consumers first.”
In the review and vary filing itself, the company says: "Videotron does not take issue with the Commission’s conclusion that the Unlimited Music program violates section 27(2) of the Act. Videotron accordingly ceased to offer the Unlimited Music program to new subscribers, or to existing subscribers renewing or renegotiating new contracts for mobile wireless services, as of May 10, 2017," reads the submission. "However, due to technological, administrative, and privacy-based constraints, and assuming it should respect its contractual and legal obligations to affected subscribers, Videotron will not be able to terminate the program within the deadline set in the Decision. As a result, Videotron respectfully submits that there is reason to doubt the correctness of the Decision such that it ought to be reviewed and varied.
"In order to comply with the Decision while maintaining equivalent services to Affected Subscribers, Videotron would have to establish alternative services or benefits to replace the Unlimited Music program," the submission continues. "This is a massive undertaking as it requires the calculation of the amount of data used by Affected Subscribers to listen to music through the program; the identification, development, programming and testing of alternative services and benefits; and communication with Videotron’s customers with respect to changes to their contracts."
Essentially, this is a contract change in which Videotron's own contracts say they must give at least 30 days notice of any change – and it is hamstrung by the fact that some customers did not consent to being contacted by the company via email, or have dated or faulty email addresses on file. The number of subscribers affected by the decision was deemed confidential and removed from the public file.
"Compliance with the current deadline, even assuming it were technically possible, would therefore result in huge disruption to Affected Subscribers and to Videotron’s operations generally, which in turn would have a serious impact on all Videotron subscribers, Videotron and its employees," reads the company's filing.
So, it has asked the CRTC if it can grandfather contracts currently in place with the affected subscribers, until they reach the end of their handset subsidy amortization period in their contract, or signs a new one.
"In the alternative, we ask the Commission to set a deadline for compliance that is fair and reasonable to the Affected Subscribers, Videotron’s other subscribers and to Videotron itself, and that takes into account technological, administrative and privacy-based factors," continues the application.
As well, while the CRTC considers this review and vary application, Videotron wants a stay of the decision – and to hear a decision on that stay before June 9th. "If a stay is not granted, Videotron will suffer irreparable harm," it says.
"If Videotron does not obtain a stay, in order to comply with its contractual and statutory obligations, it will have to take steps by no later than June 9, 2017 to notify Affected Subscribers of the termination of the Unlimited Music program." To get there, Videotron wants an expedited process and has requested interested parties file comments on the stay portion by May 31, 2017 (next Wednesday) and then Videotron would then commit to filing its replies by June 2.
The Commission has not yet responded to this request.
