Videotron appeals CRTC ruling to stop unlimited music

Host says it’s not bucking decision, but buying time

Videotron has appealed the federal telecom regulator’s decision to outlaw its mobile phone plans that let customers stream unlimited music without extra data charges, stating it faces irreparable harm if forced to cancel the plans by the imposed deadline.

A complaint about these plans sparked a 19-month proceeding at the Canadian Radio-television and Telecommunications Commission over such data freebies. In April, the CRTC introduced rules to prevent providers from exempting certain content from data caps in the name of net neutrality, the principle that all data should be treated equally.

While Videotron initially said it was disappointed with the decision, its appeal doesn’t contest the new rules — it merely asks for more time to deal with the logistical nightmare the decision sparked. It’s the only provider dealing with the fallout, as similar offerings were limited given the spectre of regulatory action.

Videotron said Thursday it doesn’t take issue with the CRTC’s conclusion that the unlimited music plans violated law by giving undue preference to consumers who choose music over other content, according to an application to review, vary and stay the decision.

Instead, it argues it is impossible to axe the plans by the CRTC’s July deadline without a “huge disruption” to subscribers, including “tens of thousands” who have signed up for services since the CRTC started its investigation. It argues the commission didn’t consider the feasibility of getting rid of the plans quickly.

Videotron has stopped selling or renewing the plans, but asked the CRTC to grandfather the existing plans until the subscribers have paid off their handsets or at least give it more time to implement the changes.

“Videotron is asking the CRTC to permit measures that would allow customers who are enjoying the service launched two years ago a smooth and advantageous transition,” according to a statement from the regional provider, whose success in wireless is driving growth at its parent Quebecor.

Videotron wouldn’t say how many customers subscribe to its unlimited music plans, though its wireless subscriber count increased to 920,900 as of March 31 from 742,500 when the complaint was launched in September 2015.

But it estimates it would take until the end of January to shut down the program completely given the “massive undertaking” to establish alternative services, since it would have to calculate the amount of data used, test alternative services and communicate the changes customers.

Customers are entitled by law to 30 days notice for any contract changes. If Videotron implemented changes unilaterally, customers would have the option to walk away without paying the balance for their handsets.

This could hurt Videotron’s television, Internet and home telephone subscriber counts, too, since it says the majority of customers subscribe to more than one service.

Videotron said the timing means it’s already “overtaxed” — July 1 is a big moving date, and many of its employees are on vacation in June, July and August — so customer frustrations with service delays could “inflict significant and long-term reputational damage on its brand.”

It asked the CRTC to expedite its request.

A CRTC spokesperson said the commission is reviewing the application, but had no further comment.