Wireless industry players prefer national regulation over provincial ‘patchwork’: CWTA

Canada's largest wireless industry association says it supports the national regulation of mobile contracts if it means a patchwork of provincial regulations can be avoided. Telus Communications Co. submitted a proposal to the CRTC on Feb. 8, recommending that the commission introduce national standards regulating consumer mobile contracts. The company said consumers face “multiple, conflicting standards” from province to province, and called on the CRTC to impose regulations governing contract terms and conditions; customer obligations to pay for service charges while wireless devices are repaired; the advertising of service rates and data consumption limits; the use of paper invoices; warranty information; and customer notifications. Marc Choma, director of communications at the Canadian Wireless Telecommunications Association (CWTA), said in an interview that the association supports a national framework if it means service providers and consumers will not face a patchwork provincial system. “We don't want to see customers having to deal with different sets of standards right across the country,” Choma said. “If there are going to be standards put in place by the provinces, it would make sense if it was on a national basis, so that everyone, consumers and the industry, would be on the same footing.” Choma said the association, which represents Canada's largest telecom incumbents as well as new entrants, has discussed national regulations but it is not taking a position on Telus' proposal to the CRTC. “National regulation is something that the CWTA and its members have been exploring in the past. We haven't really come to any sort of decision how to move that forward as an association,” he said. Most provinces do not have wireless contract regulations, but Manitoba has introduced a plan for stronger consumer protection with provisions for mobile users, and Quebec passed a law governing wireless services in 2010. In the Ontario legislature, Bill 5, a private members' bill to regulate wireless contracts, has passed second reading and on Dec. 1 was referred to committee for study. Ted Woodhead, vice president of regulatory affairs at Telus, said the national regulation of mobile services is within the CRTC's jurisdiction and that such a move would address the problem of regulations in some provinces but not others. " has always had this jurisdiction. They still have this jurisdiction, and as times change, maybe it's time to refresh the list of things that they require of the consumer terms of service,” Woodhead said. Jan Forster, a director at Manitoba's Department of Family Services and Consumer Affairs, said in an interview that, based on discussions with colleagues, she believes other provinces are interested in introducing legislation governing mobile contracts. "My understanding is that looking at contracts and consumer protection is still a provincial responsibility, and the federal government, CRTC, has oversight for telecommunications,” Forster said. “I'm not sure that the federal government would actually have the jurisdiction to do the kinds of things that the provinces are doing," she said. Forster said the province of Manitoba wants its legislation to be consistent with Quebec's so that it doesn't create “undue stress” for consumers and service providers. "We wanted to be consistent with Quebec and I would assume that the other provinces, if they did come into the game, would look the same," Forster said. John Lawford, a research analyst and counsel with the Public Interest Advocacy Centre (PIAC), said it is not easy to say whether provincial law or national regulation is more effective but it is "tempting to take Telus up on their offer.” Under a provincial approach to regulating mobile contracts, Lawford said he would not want to let down consumers in Saskatchewan, New Brunswick, P.E.I., or other provinces without the regulations. “I'm happy for the people in Quebec who have good rules. Manitoba might get them, and Ontario, maybe, if we ram it through. But at the end of the day, who are we protecting? Everybody,” Lawford said. Lawford said the CRTC should agree to Telus' proposal even if it departs from the commission's typical areas of regulation. A lack of action on the part of the CRTC would result in its jurisdiction being “chipped away,” he said. "They could do it if whoever starts to run the place over there realizes they're losing power by ignoring consumers,” he said. “They better smarten up, because it really is going to reduce their relevance to the average Canadian if they don't do stuff about these big issues.” Howard Maker, the Commissioner for Complaints for Telecommunications Service (CCTS), said he sees many customer complaints about pricing. "Customers certainly think that Canadian pricing is high, and a lot of the complaints are about billing, so there seems to be uncertainty perhaps about how the pricing and billing models work,” he said. “Anything that clarifies that makes sense to me." Maker said issue of jurisdiction represents a “classic Canadian constitutional conflict,” with telecom regulated federally and consumer protection provincially. "I'm not sure that the provinces are going to give up their jurisdiction very easily. It's certainly going to be interesting to see what the commission does with that request ,” he said. The CRTC notes on its website that it does not regulate wireless services or pricing because the mobile services marketplace is sufficiently competitive. The commission has the power to put conditions on wireless services and can regulate pricing if there is evidence a market is not competitive. The CRTC regulates wireline telephone service pricing for about 20 per cent of households. news@thewirereport.ca

Wireless industry players prefer national regulation over provincial ‘patchwork’: CWTA

News | February 29, 2012

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