More than $310 million in disputed revenue has been ordered to be returned to urban customers of Bell Canada, Bell Aliant, Telus and MTS Allstream by the Canadian Radio-television and Telecommunications Commission.
Rebates between $25 and $90 are due from a now settled dispute concerning overcharges between 2002 and 2006 at the order of the CRTC. The companies were also ordered to spend millions to expand broadband Internet service in rural communities, but they appear poised to fight back the CRTC’s order controlling what technology should be used to do so.
The Vancouver Sun reported that the overpayments resulted from an order of the CRTC that forced major landline telephone providers to keep rates in high-service areas artificially high to encourage competitors to enter the market. The difference between the actual rates, and the lower fees that would have otherwise been allowed, had to be kept in a deferral account. Over time, the account accrued more than $700 million in funds. Companies argued the money should be returned as revenue to be spent on hooking up Internet in rural areas, while consumer groups argued it was an overcharge.
Now, $310.8 million of that money will comprise the rebate while $421.9 million is applied to broadband buildout.
Bell Canada and Bell Aliant Regional Communications will connect 112 communities in Ontario and Quebec. Telus will connect 159 communities in British Columbia, Alberta and Quebec. And MTS Allstream Inc. will connect 16 communities in Manitoba.
