CRTC rebuts claims it overstepped with wireless code

The CRTC not only has the right to implement its consumer-friendly wireless code, but its powers extend to the so-far-unused ability to determine prices within the wireless industry, the commission said in a response filed Thursday to a court challenge from some of Canada’s biggest telecoms companies. The telecoms regulator was defending its regulatory power from a Federal Court of Appeal challenge, led by mobile providers BCE Inc., Rogers Communications Inc., Telus Corp., Manitoba Telecom Services Inc. and SaskTel, who allege that the CRTC overstepped its authority when it said consumer protections contained in the wireless code would apply to all wireless service contracts in June 2015, regardless of when those contracts were signed. The carriers had challenged the CRTC’s power to change the conditions of pre-existing contracts. In this latest filing, the CRTC said that the Telecommunications Act gives it nearly limitless power in determining the rules of the wireless industry. “To interpret the Act otherwise would permit wireless carriers to use long-term contracts as a way to shield their activities from regulatory oversight,” the CRTC said. The CRTC said in its filing that they have “a broad mandate to regulate the offering and provision of telecommunications services by Canadian carriers” and that, if anything, the regulator errs on the side of non-intervention in the wireless market. “The CRTC has … decided to refrain from exercising many, but not all of its powers with respect to wireless services,” it said. “In particular, the CRTC forbore from exercising its powers to approve tariffs and determine just and reasonable rates.” Section 24 of the Telecommunications Act gives the CRTC the power to set “any condition” on telecoms providers. The carriers said Section 24 of the Telecommunications Act — which allows the CRTC to impose “conditions” on telecom providers, and on which the commission relied to create its wireless code regulations — does not give the commission the authority to interfere with companies’ vested rights, or to apply conditions retrospectively. Such an interpretation is not supported in the legislation or by case law and would “prevent the CRTC from fulfilling its duties to prevent undue preference and unjust discrimination,” the regulator said. “Otherwise, long-term contracts would be immunized from CRTC oversight. “ The CRTC said wireless carriers know their contracts are subject to CRTC approval, pointing to a clause in a Bell contract that that says “these terms and conditions are subject to amendment, modification, or termination if required” by federal laws or regulations. Calls for comment to Rogers, Bell and Telus were not returned at the time of publication. Released by the CRTC last June 3, the wireless code says consumers who enter new wireless service contracts after Dec. 2, 2013 can exit those contracts after two years without being subjected to an early cancellation fee. The code applies to all contracts “no matter when they were entered into” as of June 3, 2015, the commission said. The Wire Report reported last year that the decision could cost wireless carriers hundreds of millions of dollars if consumers, as of June 3, 2015, can exit three-year contracts without repaying the device subsidies they received when signing their contract, and which the carriers typically recoup over the course of the service contract. In January, a court filing from the wireless providers said the “retrospective” application of the wireless code would deprive the carriers of “significant benefits” that they would otherwise receive from “several million” three-year contracts that were signed before June 2013. The case is listed in the Federal Court of Appeal under file number A-337-13.

CRTC rebuts claims it overstepped with wireless code

News | February 21, 2014

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CRTC rebuts claims it overstepped with wireless code

News | February 21, 2014

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