Friday, February 22, 2008

 

A new twist on ILEC surcharges

AliantJust when we might have hoped that System Access Fees were as bad as it could get, the marketing folks at Bell Aliant have found a new way to stick it to consumers.

The CRTC approved plans by Bell Aliant to introduce a 30-day notice period when customers cancel certain bundles. I guess they figure that if you can't charge the people who want your services, charge the people who want to go. That will sure leave them with a great feeling, won't it?

Among others, the plan will affect students who may consider taking bundles for 8 months before going home for the summer. If they don't remember to cancel their plans in March, the new fee is the equivalent of a 12% rate hike.

What is the fee for? Because Aliant can charge it. Call it a contribution to the Aliant Income Trust Profitability Relief Fund.

On one hand, I could argue that we should let market forces rule - let companies charge what they want. If consumers don't like it, find another service provider. But this kind of fee is a 'back-end load'. Customers are being hit with it when they leave - a set of handcuffs to try to get customers to think twice before switching.

Consumers have market forces to bring to bear as well. How could Bell Aliant customers respond? Maybe they could start by canceling their pre-authorized payment plans as an expression of disapproval. Or start shopping elsewhere - after all, you need to give 30 days notice when you switch.

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