Telus 2008 Annual Report Download - page 24

The CRTC and federal government have implemented several changes to the regulatory
regime for local telecommunications services. On December 14, 2006, the Governor in
Council issued a direction to the CRTC to rely on market forces to the maximum extent
feasible; to ensure technological and competitive neutrality and enable competition from
new technologies; to use tariff approval mechanisms that are as minimally intrusive as
possible; to complete a review of the framework for mandated access to wholesale
services; to publish and maintain performance standards for its various processes; and,
to continue to explore new ways of streamlining its processes.
On April 4, 2007, the Governor in Council issued Order in Council P.C. 2007-532 and
varied a previous CRTC local forbearance decision (Decision 2006-15) by changing the
criteria for local forbearance for residential and business local exchange services.
Instead of requiring at least 25 per cent market share loss in large local forbearance
regions, the Order in Council requires two independent facilities-based competitors (of
which one can be a wireless service provider) capable of serving at least 75 per cent of
the residential lines in a local exchange area. For business local exchange service,
forbearance is granted when one facilities-based competitor is able to serve at least 75
per cent of the business lines in the relevant exchange.
The Order in Council reduced the number of quality of service indicators that must be
met for the six-month period prior to the forbearance application. The Order in Council
also removed restrictions on winbacks (actions to regain customers who have switched
to a competing service provider) and promotions by the incumbent telephone
companies.
Since the Order in Council was issued, TELUS has obtained forbearance for local
residential service in 96 exchanges in B.C., Alberta and Québec (about 80 per cent of
residential lines in non-high-cost serving areas). TELUS has also obtained forbearance
for local business service in 47 exchanges in B.C., Alberta and Québec (about 70 per
cent of business lines).
On April 4, 2007, the Governor in Council also issued Order in Council P.C. 2007-533,
which effectively required TELUS and the other incumbent telephone companies to set
up an ombudsman service to resolve complaints between consumer and small business
customers and providers of forborne retail telecommunications services, including local
and long distance telephone service, Internet access service, and wireless service.
TELUS and other telecommunications service providers created the Commissioner for
Complaints for Telecommunications Services (CCTS), and TELUS became a founding
member on July 23, 2007. In Decision 2007-130 (released December 21, 2007), the
CRTC ordered a number of changes to CCTS’ structure and mandate and made
membership mandatory for most telecommunications service providers as of February 1,
2008. In Decision 2008-46 (released May 30, 2008), the CRTC limited the time period
for mandatory membership in CCTS for telecommunications service providers to three
years and stated that it would initiate a review of CCTS after three years. CCTS has the
authority to investigate, make recommendations, and ultimately to render decisions that
are binding on its members with respect to eligible complaints from their consumer and
small business customers. CCTS can assess a monetary award of up to $5,000 for
direct damages actually sustained by a customer of a CCTS member company.
The major categories of telecommunications services provided by TELUS that remain
subject to rate regulation are Competitor Services, Public Telephone Services, Services
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