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CRTC Orders Telus to Refund Long Distance Access Fee

7:00 am on April 21, 2008 | Category: Business, Editorials, Regulation, Telecom Services, Telephone

Western Canada’s leading telecom operator, Telus Corp., must refund all proceeds from a $2.95/month long distance “network-access fee” charged to its residential telephone customers over the last few months, the Canadian Radio-television and Telecommunications Commission (CRTC) ruled late last week.

“When applied to customers who did not make any long-distance calls, the monthly fee was equivalent to an unauthorized increase to the residential local service rate,” said Konrad von Finckenstein, Chairman of the CRTC. “We will use our powers whenever necessary to uphold the interests of consumers of telecommunications services, particularly in instances when companies impose unauthorized charges.”

The long distance access fee has been charged to more than 500,000 B.C. and Alberta telephone since November 2007, prompting about 1,100 customer complaints over the past few months, as well as protests from long distance dial-around provider, Yak Communications (Canada) Corp., which called the Telus fee an “unauthorized residential local rate increase.”

The CRTC ruled that Telus must stop charging the long distance fee, and refund the $2.95/month charge to all customers that did not use Telus’ long distance services during the relevant month. Given the current regulatory laws on Canadian telecom services, this is a reasonable and logical decision. Telus is reportedly considering an appeal, but such an action would be unlikely to succeed.

Although TeleClick.ca is highly skeptical of any attempts to regulate local and long distance telephone prices, it is obvious that this fee was initiated in a dishonest and unethical way. Naturally, the greatest condemnation of such actions is not delivered by the CRTC, but by consumers themselves, which have fled to Shaw Communications and other alternative carriers in recent months, causing analysts to downgrade Telus’ stock.

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It would be nice if you could “flee” to Shaw. Some of us are stuck with Telus as the only provider in our rural area – and they are positively the worst company I have ever dealt with. I really wish I could move to Shaw.

Comment by Tracy — May 8, 2008 #
I am SO HAPPY I cancelled my Telus service today – COMPLETELY!! They can take their ridiculous & alienating long distance admin fee & run to the bank with all the moolaa they’re making on it…its not going to be enough to save them from the revolt by those of us who are in a position to finally say…enough is enough!! For once, I get to be in control of the fees I pay Telus – NONE. Yahoo. For those of you who don’t have the option…its just a matter of time.

Comment by Karen — June 26, 2008 #
I am telus dealer. Not very friendly company becasue they have hired employees with little or no experiance in this business or public relations. I feel your pain. I am dealer partner imagine if you are customer. Worst company to ever do business with. Will caution anyone who may think of doing business with this company. I hope I can get out of this jail soon.

Comment by Robert — July 15, 2008 #
Very interesting- I caught this money grab on my phone bill the 1st mnth they instituted it and immediately called Telus. I informed them that I do not use their long distance service (but a prepaid phone card instead) and wasn’t going to pay this fee. The rep did remove it but according to her the only way to keep me from being charged each month thereafter, was for her to put a long distance block on my phone number .I told her to go ahead and upon hanging up immediately wrote an email to CBC’s Marketplace ( who had done a segment on Telus issues)explaining this newest nickel&diming trick that Telus had not informed anyone of before doing it( it just appeared on one’s phone bill- guess they hoped no one lookd at their bills ever!!) While I never heard back from Marketplace , I am so glad to see that Telus got whacked.

Comment by Kim — July 18, 2008 #

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