ARCHIVED - Telecom Commission Letter Addressed to Kolos Gugan (Wightman Telecom Ltd.)

Ottawa, 14 August 2014

Our references: 8665-C12-201212448

BY EMAIL

Mr. Kolos Gugan
Controller
Wightman Telecom Ltd.
kgugan@wightman.ca

RE:  Wireless Code Implementation – Compliance Reports – Action Required

Dear Mr. Gugan:

This letter is to inform you that it appears to the Canadian Radio-television and Telecommunications Commission (the Commission) that your company, Wightman Telecom Ltd. (Wightman), has made most, but not all, of the necessary changes to its contracts, policies, and procedures to implement the Wireless Code (the Code). The Commission appreciates your company’s efforts to implement the Code on time. However, the Commission considers that there are one or more remaining issues that your company must resolve in order to fully and appropriately implement the Code. Wightman is required to respond to the Commission’s concerns, set out in more detail below, by 22 August 2014. In your letter you should explain whether you have taken the actions directed by the Commission in this letter in order to come into full compliance with the Code.

The Commission intends to publish a report for consumers in August 2014 that summarizes the results of the Wireless Code implementation process, including the information submitted by your company in your Wireless Code compliance reports and in response to follow-up correspondence, including this letter. If your company demonstrates in its response to this letter that it has made the necessary changes to fully implement the Code, the Commission’s upcoming report will reflect this.

The requirement to implement the Wireless Code

In The Wireless Code Policy^{Footnote 1}, the Commission established the Wireless Code, a new mandatory code of conduct for providers of retail mobile wireless voice and data services (wireless services). The Wireless Code applies to all wireless services provided to individual and small business consumers in all provinces and territories regardless of the status and business models of the wireless service provider (WSP).

As required by paragraph 377 of the Wireless Code Policy, WSPs filed reports with the Commission in January 2014 detailing how they have implemented the Wireless Code^{Footnote 2}.

Commission staff reviewed these reports and, on 22 May 2014 and 6 June 2014, issued letters to follow up with certain companies to seek clarification on specific issues in these reports. Your company filed a response on 13 June 2014.

Specific issues to be resolved

Based on the above-mentioned reports and correspondence, it appears that your company needs to address the following issues to fully and appropriately implement the Code:

• Data caps

In section E of the Wireless Code, and paragraphs 136-137 of the Wireless Code Policy, the Commission required wireless carriers, including Wightman, to “suspend national and international data roaming charges once they reach $100 within a single monthly billing cycle, unless the customer explicitly and knowingly consents to pay additional charges. The Commission also requires WSPs to suspend data overage charges once they reach $50 within a single billing cycle, unless the customer explicitly and knowingly agrees to pay additional charges.”

In paragraph 129, the Commission further explained that it “considers that WSPs should provide a cap on data charges by default. The Commission also considers that if a consumer reaches a data cap, they should have the option to expressly consent to pay additional charges in that monthly billing cycle. The Commission notes that under such a requirement, WSPs would not be required to suspend data services once a cap is reached.”

The Commission notes that the other wireless carriers have enabled customers to cap their data services. However, in the contract you provided in your report, Wightman indicated that it does not enable customers to cap data charges and instead requires customers to explicitly agree to all future overage charges as a condition of obtaining services from it. Wightman specifically stated that: “In the Wightman Contract, there is a requirement for the customer to expressly consent to the charges and sign their name next to it. If the customer does not wish to sign the consent, Wightman will not give the customer cellular service.”

In a letter dated 22 May 2014, Commission staff sought clarification on this point and asked Wightman to explain how it considered that its approach was consistent with the requirement set out in the Wireless Code and the intention of enabling consumers to avoid bill shock.

The Commission received no reply from Wightman. The Commission sent an additional letter to Wightman addressing this issue on 6 June 2014. Wightman replied on 13 June 2014, as follows: “Wightman Telecom viewed this section of the code as an “either / or” scenario in its interpretation of the code. In its view, Wightman clearly identifies the “express agreement” to pay and it is identified to the customer as a method of ensuring continued service without any interruptions. Wightman viewed this as a service differentiator and that, in fact, it did meet the spirit of the code.”

As the Commission stated in paragraph 3 of Telecom Decision CRTC 2013-581, Wireless Code – Request by Saskatchewan Telecommunications for an extension to the deadline to implement data caps, 31 October 2013: “sections E.2 and E.3 of the Wireless Code require wireless service providers to provide a cap on wireless data roaming and overage charges. Specifically, providers must suspend national and international l data roaming charges once they reach $100 within a single monthly billing cycle, and suspend data overage charges once they reach $50 within a single monthly billing cycle, unless the customer expressly consents to pay additional charges.” [Emphasis added]

Action Required

The Commission considers that Wightman’s current approach does not meet the Commission’s requirement to provide data caps in order to help customers prevent bill shock.

The Commission requires Wightman to do the following in order to fully implement the Code:

• Wightman must suspend national and international data roaming charges once they reach $100 within a single monthly billing cycle, unless the customer expressly consents to pay additional charges. Wightman must provide this cap at no charge.
• Wightman must suspend data overage charges once they reach $50 within a single monthly billing cycle, unless the customer expressly consents to pay additional charges. Wightman must provide this cap at no charge.

Pursuant to section 37(2) of the Telecommunications Act, the Commission hereby directs Wightman to file a response by 22 August 2014, demonstrating that it has begun to provide data caps as set out above.

If Wightman fails to take the action required by 22 August 2014, the Commission may take further steps to enforce its requirement.

Should you have any questions regarding the above matter, please contact Nanao Kachi at 819-997-4700.

Procedural information

This letter and all subsequent correspondence form part of a public record. As set out in Broadcasting and Telecom Information Bulletin 2010-961, Procedures for filing confidential information and requesting its disclosure in Commission proceedings, WSPs may designate certain information as confidential. WSPs must provide an abridged version of the document involved, accompanied by a detailed rationale to explain why the disclosure of the information is not in the public interest.

All submissions are to be made in accordance with the Canadian Radio-television and Telecommunications Commission Rules of Practice and Procedure, SOR/2010-277.^{Footnote 3}

Sincerely,

ORIGINAL SIGNED BY

John Traversy
Secretary General

c.c.: nanao.kachi@crtc.gc.ca

Date modified:

2014-08-14