Four telecoms singled out for skinny-basic hearing

The CRTC said Tuesday it will hold a hearing on the implementation of skinny basic TV packages, though it only asked four companies — BCE Inc., Rogers Communications Inc., Shaw Communications Inc., and Quebecor Inc.’s Videotron — to appear at the Sept. 7 proceeding. Since they became available in March, 100,000 Canadians have signed up for the new packages, the commission said in a press release. “The new basic package and new flexible packaging options were introduced to give Canadians the ability to tailor their television services to their needs. Concerns have been raised, however, about how some television service providers have been implementing these new options,” CRTC chairman Jean-Pierre Blais said in the release. “As we prepare for the full implementation of pick-and-pay, we will have an opportunity at the public hearing to verify whether their actions are in keeping with our objective.” After the new services were launched, critics pointed to extra fees and lack of bundling discounts TV providers attached to the new offerings. The September hearing will examine, among other questions, “all licensees’ practices in regard to the small basic service and flexible packaging requirements,” the CRTC specified in the notice of consultation. On Tuesday the CRTC also published companies’ responses to questions it had asked about how they were implementing the skinny basic and small package rules, including information about “any additional products or services that consumers have to purchase in order to receive the basic service.” Bell said that its skinny basic customers are subject to either a $15 or $28.90 monthly fee to rent an HD PVR, while some customers are also subject to a monthly receiver rental fee of either $5.95 or $7. Skinny basic customers are not eligible for a $7 bundling discount, which the company said was a marketing decision and not subject to regulation. TV customers must also pay professional installation fees of $59.95 or $199.95, and IPTV customers are also required to subscribe to Internet service from the company. “While Fibe TV is a separate and distinct offering from Bell Internet, the two have always been sold together since Fibe TV launched in September 2010, as this is the most cost efficient way to provide Fibe TV to our subscribers,” the document said. “The Internet connection is integral to the service and without it, key features of our service would not work.” It added that “in order to recoup the significant costs of acquiring and installing the customer, support from revenues generated from both the Internet and TV products is required in order for the business case to be viable.” Rogers said that subscribers to its skinny basic package must rent or purchase a digital set-top box, which costs between $5.49 and $24.95 per month to rent and between $99.99 and $449.99 to buy. They’re also subject to an installation fee of $49.99, and to an extra outlet fee of $7.49 if they have more than one TV outlet, and don’t qualify for bundling discounts. “Our multi-product bundle and hardware offerings and discounts, including access to value-added services such as Texture and NHL Game Centre Live, were specifically designed for and executed against our pre-existing value/tier package construct,” Rogers said. Existing customers who downgrade their subscriptions to the skinny basic are also subject to early cancellation fees, Rogers said. Shaw customers subscribing to its skinny basic package need to have a digital HD box, the company said. “An HD Box is available as a $5/month rental (fee waived for customers with an Internet 15 plan or above) or as a $138 purchase. Other hardware such as a Gateway HDPVR is also available,” it said. Satellite customers must purchase a digital satellite receiver for $99. Skinny basic customers also can’t sign up for some packages and don’t have access to video-on-demand, apps, and Stingray music stations. “VOD is a complementary service with embedded costs that are not recovered within the $25 price of Limited TV. Accordingly, it is not appropriate to include VOD on the affordable, entry-level small basic,” Shaw said. Customers whose TV subscription exceeds $30 (including skinny basic customers who subscribe to additional channels) are given access to VOD services, it added. Videotron also requires customers to rent a set-top box at a cost of $6.99 to $14.99, a charge that’s waived if customers sign up to 10 or more additional channels. It charges $59.95 for installation from a technician, though installation is free if customers subscribe to two or more services. The company noted that since March, it no longer offers other basic package services. In Tuesday’s notice of consultation, the CRTC said individuals and organizations, other than the four telecoms, who want to appear at the hearing should “provide a detailed rationale as to why their request should be granted, including how their oral presentation at the hearing would supplement their written submissions.” Interventions are due on June 23, and replies on July 4. — With reporting by Anja Karadeglija at akarad@thewirereport.ca and editing by Charelle Evelyn at cevelyn@thewirereport.ca

Four telecoms singled out for skinny-basic hearing

Broadcast | May 24, 2016

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Four telecoms singled out for skinny-basic hearing

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