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From Angus TeleManagement Group's Weekly Newsbulletin ..

CRTC RELAXES TELCO PRICING RULES: In Telecom Decision 2007-27, released on Monday, the Commission allows much greater pricing flexibility for still-regulated services provided by Bell Canada, Bell Aliant, MTS-Allstream, SaskTel, and Telus, beginning June 1.

• Targeted pricing – even individual rates for individual customers – is permitted, as long as the price is above cost.
   
• Prices for optional services (e.g. call display, voicemail) and service bundles are no longer capped.
   
• Basic standalone residential local rates are capped at current levels, except in high-cost rural areas, where rates may rise by inflation or 5%, whichever is less.
   
• Overall rates for business local and other capped services may rise by inflation, or a maximum of 10%/year for individual rate elements. (This rule is unchanged.)
   
• Payphone charges can rise to 50 cents a call, $1 for a non-cash call.
   
• The deferral accounts established in the 2002 price cap decision are discontinued. [NOTE: these deferral accounts were to be used by the telcos to provide the dollars necessary to upgrade services in rural and remote regions, ie. the high-cost serving areas]

Commissioner Langford issued an extensive dissent. In his view, the majority lost sight of the fact that “market forces cannot be relied upon to protect consumer interests in places where little or no competition exists,” and ”the majority decision equips incumbent telephone companies with pricing and marketing tools powerful enough to halt dead in its tracks any future rollout of competition in their territories.”

TELCOS HAPPY, PIAC OUTRAGED: The incumbent telcos were predictably thrilled by the CRTC’s new pricing rules, but consumer advocates were not.

• Bell said the ruling “sets Canada firmly on the path to a modern and efficient telecom policy framework."
   
• Telus said that as a result of the decision, “consumers will soon enjoy the flexibility and innovation fostered by a competitive telecommunications marketplace.”
   
• In contrast, Michael Janigan of the Public Interest Advocacy Centre said: “The CRTC has given Bell, Telus, and the other big phone companies the green light to raise your local telephone rates. We think the CRTC has abandoned Canadian telephone customers.”