ARCHIVED - Telecom Order CRTC 2004-268

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Telecom Order CRTC 2004-268

  Ottawa, 6 August 2004

TELUS Communications (Québec) Inc.

  Reference: Tariff Notice 375


TELUS Québec's SmartTouch services


The Commission received an application by TELUS Communications (Québec) Inc. (TELUS Québec), dated 26 February 2004, proposing revisions to General Tariff section 2.20, TELUS Québec's SmartTouch services. Specifically, the company proposed:
  • a 10% rate reduction for Call Name and Call Number Display, Call Waiting, Ident-a-Call, Call Forwarding, Voice Messaging, Mini Voice Messaging and Multi-User Voice Messaging for customers subscribing to a one-year minimum contract period (MCP);
  • a 50% rate discount, during the first two months of service, for new customers subscribing to Call Name and Call Number Display, Call Waiting, Ident-a-Call, Call Forwarding, Voice Messaging, Mini Voice Messaging or Multi-User Voice Messaging; and
  • to allow new customers to Call Name and Call Number Display, Call Waiting, Ident-a-Call, Call Forwarding, Voice Messaging, Mini Voice Messaging or Multi-User Voice Messaging who subscribe to a one-year MCP to receive over that period, the combined benefit of the two preceding offers.


TELUS Québec also proposed an automatic renewal clause and a termination clause for its MCP optional local service customers.


The Commission received no comments with respect to the application.

Commission analysis and determination


In Société en commandite Télébec and TELUS Communications (Québec) Inc. 2002 annual price cap filings, Telecom Decision CRTC 2003-57, 22 August 2003, the Commission concluded that TELUS Québec should file cost studies and imputation test results or alternate costing support when filing tariff applications to introduce a new service or to propose implicit or explicit rate reductions to an existing service. The Commission notes that TELUS Québec did not file costing information in support of its proposed rate reductions to optional services.


In Review of promotions, Telecom Public Notice CRTC 2003-1-1, 13 March 2003, the Commission suspended its consideration of applications, including those by TELUS Québec, for promotions in the local wireline market until a decision is issued on the matters raised in the Review of winback promotions, Telecom Public Notice CRTC 2003-1, 15 January 2003. The Commission considers that TELUS Québec's proposed 50% rate discount on its optional service features for the first two months of service would constitute a promotion.


In Follow-up to Decision 2002-34 − Automatic renewal of contracts with a minimum contract period, Telecom Decision CRTC 2003-85, 22 December 2003, the Commission determined that automatic renewal clauses for business customers of Bell Canada, TELUS Communications Inc. and the former TELUS Communications (B.C.) Inc. should include the following safeguards:
  • all MCP or Local Business Contract Option (LBCO) contract customers will be notified, either on their monthly bill or by letter, at least 60 days before the end of the current MCP or LBCO contract, as to when automatic renewal will take place, absent any indication by the customer to the contrary;
  • customers will be informed that automatic renewal has occurred, within 35 days following renewal; and
  • customers will be advised, either on their monthly bill or by letter, that they may cancel automatically renewed contracts without penalty within 30 days of the date of the notice of automatic renewal.


The Commission notes that TELUS Québec did not include any safeguard provisions for its proposed MCP automatic renewal clause, nor did it address the issue of MCP automatic renewal clause safeguards, as part of its proposed tariff. The Commission is concerned that residential customers may be less aware than business customers of the provisions associated with automatic renewal clauses. Consequently, the Commission considers that TELUS Québec should have, at a minimum, addressed the issue of safeguard provisions for automatic renewal clauses as part of its application.


In light of the above, the Commission does not consider that TELUS Québec has satisfied the requirements necessary to demonstrate that its application conforms to the regulatory regime to which the company is subject.


Accordingly, the Commission denies TELUS Québec's application.
  Secretary General
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Date Modified: 2004-08-06

Date modified: