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Ottawa, 2 October 2012

Our Reference: 4754-399


Distribution List

Dear Sirs and Madam :

RE : Determination of costs award with respect to the participation of the Public Interest Advocacy Centre and the Consumers’ Association of Canada in the proceeding initiated by a Part 1 application regarding certain billing practices of the wireless service providers, Telecom Order CRTC 2012-420

The Commission is in receipt of a letter dated 17 August 2012 from TELUS Communications Company (TCC) regarding the methodology in which costs awards in telecommunications proceedings are calculated and apportioned for payment among costs respondents.

In its letter, TCC submitted that the current practice of allocating responsibility for costs based on telecommunications operating revenues (TORs) is inequitable, because entities such as TCC that have a range of telecommunications revenues within their respective corporate structures are allocated a greater proportion of costs. Further, TCC proposed that in each proceeding where costs are claimed, the Commission should calculate the costs award based on the parties involved and their specific revenues related to the issue(s) in that proceeding.

TCC submitted that the Commission’s decision in Telecom Order 2012-420, which related to a proceeding regarding the billing practices of certain wireless service providers, would have been more equitable had costs been allocated based on respondents’ wireless revenues only. In making its observations and suggestions, TCC stated that it was cognizant of the costs award applications that have been filed relating to the proceeding initiated by Telecom Notice of Consultation 2012-206, which also involves wireless issues.

On 21 August 2012, the Commission received a letter from Quebecor Media, on behalf of its affiliate Videotron, expressing support for TCC’s position. On 22 August 2012, MTS Inc. and Allstream Inc. (collectively, MTS Allstream), and Rogers Communications Partnership, each filed letters with the Commission supporting TCC’s submissions. They all called on the Commission to use a costs allocation method that is based on specific revenues related to the issues at play in a given proceeding.

ommission staff notes that the aforementioned letters have not been filed in the context of a particular proceeding.1 Commission staff further notes that, pursuant to the CRTC Rules of Practice and Procedure, potential costs respondents may file with the Commission an answer to any costs application within 10 days after the day on which the application for costs is filed. In order for the Commission to consider the submissions of the telecommunications service providers (TSPs) regarding the use of TORs for the apportionment of costs, and to allow interested persons—including other potential costs respondents and potential costs applicants—the opportunity to comment on these submissions, the arguments of the TSPs ought properly to be made in their answers to an application for an award of costs.



Christianne Laizner
General Counsel, Telecommunications

Distribution List

Ted Woodhead
Telecom Policy & Regulatory Affairs
Floor 8, 215 Slater Street
Ottawa, Ontario K1P 0A6

Dennis Béland
Senior Director
Regulatory Affairs, Telecommunications
Quebecor Media
612 St-Jacques Street, 15th Floor, South Tower
Montreal, Quebec H3C 4M8

Teresa Griffin-Muir
Vice-President, Regulatory Affairs
MTS Allstream
Suite 1400, 45 O’Connor Street
Ottawa, Ontario K1P 1A4

Ken Engelhart
Senior Vice President, Regulatory
Rogers Communications Partnership
333 Bloor Street East
Toronto, Ontario M4W 1G9

[1] As stipulated in TCC’s letter, that letter does not constitute a request for the Commission to review and vary its determinations set out in Telecom Order 2012-420.

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