CRTC skinny basic hearing ‘premature,’ telecoms say

As the CRTC is set to look into the implementation of its skinny basic TV package rules by industry, telecoms are arguing the proceeding is largely premature, given that the commission’s skinny basic regime still hasn’t been fully implemented. Beginning Wednesday, the regulator will hold a hearing with four companies —Quebecor Inc.’s Videotron, Rogers Communications Inc., BCE Inc. and Shaw Communications Inc. — and consumer groups to get an idea of how the industry has complied with the skinny-basic rules. “We believe that it is premature to convene a hearing this fall to review the practices of BDUs in regard to the small basic service and flexible packaging requirements,” Bell said in a June 23 intervention, as “full implementation of the new policy is not required until 1 December 2016.” It added that about 25 per cent of the complaints the commission has received are related to the inability to choose services on a pick-and-pay basis, which isn’t mandatory until December. “It would appear that, at most, only or 236 complaints received raised legitimate issues that are potentially relevant to the hearing,” Bell added in the intervention. The skinny basic rules require companies to offer a basic TV package, priced at no more than $25 a month, and offer either pick-and-pay, or a choice of self-built packages or small pre-assembled packages, for channels outside of the entry-level basic. By December 2016, they must offer customers both of those options. Rogers agreed with Bell, arguing in a reply that “many complaints relate to confusion about the timeframe relating to the availability of full flexible packaging options.” It added that it would be “difficult to fully asses the effectiveness of BDU’s roll-out” before full implementation of the mandate on December 1. Bell added that about 60 per cent “of complaints deal with issues that are out-of-scope of the hearing,” such as that the set-top box (STB) is not included in the price of the basic service. Responding to questions on the matter from media during a technical briefing on Friday, CRTC officials said on a background basis that the hearings serve as a “pre-emptive strike,” saying they want to prompt additional discussion about what’s good about the change and what’s unfavourable to consumers. Still, issues highlighted in interventions posted on the CRTC’s website show that some wrinkles — related to either confusion or lingering problems from the March mandate — still need to be ironed out. One re-emerging concern is “tied selling,” or companies forcing customers to buy their Internet service to subscribe to their small basic television service. The Public Interest Advocacy Centre (PIAC) said in its intervention that it is concerned that tying the two services would “significantly constrain consumer choice and flexibility in regards to their choice of communications service provider, and hamper competition and the operation of market forces.” On Tuesday afternoon, Bell announced that its Fibe TV IPTV service will be available on a standalone basis in Ontario and Quebec in 2017. PIAC has also said it will bring forward issues related to the cost of set-top boxes and equipment charges and the “unfair practice” of making basic service subscribers ineligible for certain discounts and services. The group suggested that the CRTC take a look closer at the equipment pricing issue, including reflecting on a U.S. Federal Communications Commission (FCC) proposal in February that would allow customers to use set-top boxes and equipment made by other manufacturers. Bell also said in its intervention that other IPTV and cable providers should have been included in the hearing, including Cogeco Inc., Bragg Communication Inc.’s Eastlink, Telus Corp., Saskatchewan Telecommunications Holding Corp. and VMedia Inc. In response to a question on why only the top four providers were invited, CRTC officials said on a background basis that Friday that the regulator chose to address the issues with the companies who hold market power. — With reporting by Ahmad Hathout at ahathout@thewirereport.ca and editing by Anja Karadeglija at akarad@thewirereport.ca

CRTC skinny basic hearing ‘premature,’ telecoms say

Broadcast | September 6, 2016

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CRTC skinny basic hearing ‘premature,’ telecoms say

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