Comwave alleges Rogers Telecom in violation of Telecommunications Act7 May 2006
Comwave Telecom Inc., a leading Canadian provider of Voice-over-Internet Protocol (VoIP) telephone service, today filed an application to the Canadian Radio-television and Telecommunications Commission (CRTC) to prohibit Rogers Telecom Inc. from engaging in anti-competitive conduct and discriminatory practices in its provision of telecommunications services to the company.
Under the application, filed in accordance with Part VII of the CRTC Telecommunications Rules of Procedure, Comwave charges Rogers with a series of unduly restrictive practices in its provision of local number portability service (LNP) to Comwave customers - a right mandated by the CRTC that enables consumers to keep their existing telephone number when switching their local telephone companies. Comwave contends these actions put Rogers Telecom Inc. squarely in violation of section 27 of the Telecommunications Act.
Comwave cannot conduct business without LNP service and Rogers is its primary LNP provider. According to Comwave, through its unlawful LNP practices, Rogers is preventing existing Rogers customers from switching to the Comwave service, and is making it time consuming for others to adopt the new service, a practice that Comwave says is undermining VoIP competition before it even starts.
"Not only is this a critical business issue - it's also a basic consumer issue and a fundamental consumer right," says Yuval Barzakay, president and CEO of Comwave Telecom. "Rogers' actions set a dangerous precedent and Comwave urges the CRTC to act swiftly in the interests of the consumer."
LNP restrictions anti-competitive
Comwave relies on local number portability service provided to it by Rogers under a contractual agreement between Comwave and Sprint Canada Inc., a corporation acquired by Rogers Communications Inc. On July 7, 2005, the date on which Sprint officially began operating as Rogers, the company unilaterally imported new, restrictive conditions into the agreement with Comwave. Specifically:
- Rogers will support no more than ten LNP requests from Comwave per
day; and
- Rogers refuses outright to process LNP requests from existing Rogers
customers seeking to switch their service to Comwave.
In addition, Rogers' recent practice of providing Comwave with inadequate and after-the-fact notice of LNP transfers of customers' numbers to other services providers, without any factual verification, is putting consumers at risk of loss of local telephone service, including 911.
In its CRTC application, Comwave alleges that the above practices are unduly preferential to Rogers and unjustly discriminatory against Comwave, contrary to section 27 of the Telecommunications Act which prohibits unfair practices by telecom carriers. The actions further constitute anti-competitive conduct on the part of Rogers and, in Comwave's opinion, warrant Commission intervention and remedial action on an urgent basis.
Potential costs staggering
Delay and loss of business due to Rogers' LNP restrictions have created significant costs for Comwave - and impede the company's ability to service its customers in a timely and responsive manner. "VoIP is about efficiency and value. If we can't deliver on both, consumers won't switch to Comwave," says Barzakay.
Further, Rogers' refusal to provide LNP service for existing Rogers customers has forced Comwave to enter into a series of secondary provider agreements at a minimum additional cost of $135 per customer. "If we don't put a halt to this, the potential costs would be staggering," adds Barzakay. "We are being forced to build redundant networks - which are sometimes left idle - simply to port a Rogers customer to Comwave. Not only is this practice cumbersome for consumers, it has the potential to entirely wipe out the economies of scale and efficiencies of VoIP."
Comwave has also filed a claim for damages against Rogers for breach of contract in the Ontario Superior Court of Justice. That claim, in the amount of $3.7 million, is currently pending before the Ontario courts.
The CRTC application by Comwave Telecom Inc. will be available shortly on
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the Commission's website at www.crtc.gc.ca or by request.
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About Comwave (www.comwave.net)
Comwave is a full-service telecommunications company. Located in Toronto, the company specializes in discount long distance and leading-edge residential and business local phone service over a private, all-digital network. Comwave provides home phone service, business lines, wholesale and toll-free services, and web phones.
For further information: Roanne Argyle or Melissa Yollick, Argyle Rowland Communications, (416) 968-7311, ext. 232 or 231, roanne@argylerowland.com, myollick@argylerowland.com
Source: newswire
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