Transforming Network Infrastructure Industry News

[December 03, 2007]

Yak calls recent TELUS fee illegal; Calls on CRTC to remove it

(Canada Newswire English Via Thomson Dialog NewsEdge) Attention News Editors

Application filed to protect Canadians against consumer gouging

TORONTO, Dec. 3 /CNW/ - Yak Communications (Canada) Corp., a subsidiary of Globalive Communications Corp., today announced that it has filed applications with the Canadian Radio-Television and Telecommunications Commission (the "CRTC") seeking to remove a long distance "access fee" recently introduced by TELUS. Among the remedies Yak is seeking, Yak has applied for an order that consumers who have already paid this new fee be reimbursed by TELUS.

The fee, which was introduced by TELUS in late November, is an extra charge of $2.95 per month for home phone users on TELUS' basic toll service (i.e., TELUS subscribers not on a long distance plan). Unfortunately, TELUS' communication to its subscribers has been unclear and there has been consumer confusion on who the charge applies to.

"Our phones have been ringing off the hook with customers who are angry and confused about this new fee," said Andrew Boone, Yak's Vice President of Marketing. "They have every right to be angry - this fee is completely unfair to customers, which is why we have taken it to the CRTC to have it removed." Despite the confusion, Yak has determined that subscribers to Yak's long distance plan will not be charged the fee (though users of Yak's dial-around offerings not on a plan, such as 10-10-YAK (925) will still be charged the fee by TELUS).

Yak's applications are supported by the Public Interest Advocacy Centre (PIAC), which is also considering filing its own application with the CRTC to address this matter. "PIAC, together with the Consumers' Association of Canada looks forward to the CRTC addressing the fact that TELUS customers' local phone rates have been improperly raised with this new charge," said John Lawford, in-house counsel to PIAC.

Yak's applications request that the CRTC return basic toll service to the regulated sphere and declare the new fee illegal, and that TELUS reimburse customers that have already paid it. In addition, Yak has asked that alternative providers like Yak be compensated for the extra call centre work load that has been created by the market place confusion, especially in respect of not making it clear that subscribers to long distance plans like Yak's are absolved of the fee.

"Right now carriers are not allowed to unilaterally raise local rates but as this recent fee demonstrates, they are seeking to get around this by adding such "access" fees," said Simon Lockie, Yak and Globalive's Chief Legal Officer. "This is a very good example of why there needs to be more regulation in this area by the CRTC - to protect the consumers who need it the most."

About Yak Communications

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Yak Communications offers a full array of phone services including: home phone, long distance (1+, toll free and dial around), high speed internet, calling cards and cellular long distance to residential consumers across Canada. Yak's most prominent long distance offering is 10-10-YAK (925), a dial-around service which offers very economical per minute rates.

or to arrange an interview please contact: Micha Goddard, Narrative Advocacy Media, Office (416) 922-2211 ext. 3277, [email protected]; Lindsay Mattick Davidson, Narrative Advocacy Media, Office (416) 644-4123, Cell (647) 338-3977, [email protected]

Copyright 2007 Canada Newswire Ltd. All Rights Reserved.

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