Cable & Wireless (Barbados) Ltd Standards of Service 2018–2020

• Jurisdiction: Barbados
• Court: Fair Trading Commission (Barbados)
• Judgment Date: 29 September 2017
• Docket Number: Document No.: FTCUR/DECSOS/CW-2017-03

Cable & Wireless (Barbados) Limited Standards of Service 2018–2020

Document No.: FTCUR/DECSOS/CW-2017-03

FAIR TRADING COMMISSION

DECISION

Table of Contents

SECTION 1 EXECUTIVE SUMMARY	4
SECTION 2 INTRODUCTION	6
2.0 Background	6
2.1 Legislative Framework	7
2.2 Consultation Process	9
SECTION 3 TELECOMMUNICATIONS SECTOR	10
SECTION 4 THE DETERMINATION	11
4.0 General	11
4.1 Guaranteed Standards of Service for C&W	11
4.2 Overall Standards of Service for C&W	19
SECTION 5 GENERAL EXEMPTIONS	23
5.0 Force Majeure	23
5.1 Other Exemptions and Conditions	23
SECTION 6 REASONS FOR DECISION	25
6.0 General	25
6.1 Detailed Analysis	25
SECTION 7 ADMINISTRATION	36
7.0 Monitoring and Enforcement of Standards	36
7.1 Public Disclosure of Information	37
7.2 Public Education	37
7.3 Implementation and Review	37

SECTION 1 EXECUTIVE SUMMARY

1 On March 3, 2017, the Fair Trading Commission (the Commission) commenced the review of the Standards of Service for Cable & Wireless (Barbados) Limited (C&W) for the period 2014 – 2017 for its domestic fixed line telephone services. Standards of Service are an important mechanism for ensuring that C&W provides a safe, efficient and reliable service to its customers. Intermittent review and appropriate amendment of the Standards of Service can facilitate improved performance.

2 The Commission initiated this review by issuing a Consultation Paper 1. This written consultation is a means of ensuring that there is transparency in its review of the July 2014 Decision on the Standards of Service for C&W. Service providers, representatives of consumer interest groups and any other parties that have an interest in the matter, were invited to submit written responses to the Consultation Paper.

3 Having reviewed and analysed the only submission, which was received from C&W, the Commission has determined that the Standards of Service shall be revised as follows:

Guaranteed Standards of Service

• • The Guaranteed Standards Approval for Application of Service (GTS 1A) and Installation of Service after approval (GTS 1B) shall be amalgamated into Installation or Transfer of Service (GTS 1) and shall be amended to specify transfers of service in addition to new installations;

• • The definition of ‘loss of service’ shall now be: “disrupted or degraded service including, inter alia, no dial tone”;

• • The Guaranteed Standard for Billing Accuracy (GTS 8 (New)) relating to the granting of compensation to individual customers for billing errors, shall be instituted;

• • The target time for Reconnection after Disconnection for Non-Payment (GTS 6) shall be reduced from eight (8) working hours to six (6) working hours. Additionally, compensation under this Standard will be $30.00 for both residential and business categories;

• • The level of compensation for the Guaranteed Standard for Wrongful Disconnection (GTS 7) shall be amended to $30 for each affected customer;

Overall Standards of Service

• • The Overall Standard for Trunk Blocking (OTS 4) shall be discontinued;

• • The Overall Standard for Working Payphones (OTS 3) shall be retained. The target shall now be: At least 75% of public payphones shall be in working order daily;

• • A new Overall Standard for Fault Incidence (OTS 4), will measure the incidence of faults on C&W's network. The new Standard's target will be no more than three (3) faults per one hundred (100) subscribers per month or alternatively, a fault incidence of no more than 3%; and

• • C&W shall now be required to submit the value of compensation due for breaches of each Guaranteed Standard of Service.

General Administration

• • C&W will be required to institute a standard complaints procedure, inclusive of an official complaint form, to be reviewed by the Commission;

• • C&W must implement the following measures:

  • a) Publish the Standards of Service Tables prominently on its website;

  • b) Make available to its customers, by post or electronically within two (2) months of the implementation of this Decision, the Table of the Guaranteed Standards of Service as set out in this Decision;

  • c) Include the weblink to the Table of Guaranteed Standards on customers' utility bills;

  • d) On a quarterly basis, publicise in at least two (2) forms of local media, the Guaranteed Standards of Service, as well as its fault reporting process; and

  • e) Inform customers who make complaints of the means by which compensation may be sought.

4 The Standards of Service for C&W shall come into effect on January 1, 2018 and continue until December 31, 2020 or until such time as a new Standards of Service Decision is issued. These Standards of Service are subject to review by the Commission, at which time amendments to the Standards, target times or compensation may be made.

SECTION 2 INTRODUCTION

2.0 Background

5 This Decision sets out the Commission's determination of the Standards of Service for the domestic fixed line telephone services of C&W.

6 The Utilities Regulation Act, CAP. 282 of the Laws of Barbados (URA) provides for the determination of standards of service by the Commission. In discharging this responsibility, the Commission issued a Consultation Paper on March 3, 2017 as mandated by the Fair Trading Commission Act, CAP. 326B of the Laws of Barbados (FTCA). Service providers, representatives of consumer interest groups and other interested parties were invited to comment on the Consultation Paper.

7 The purpose of a standards of service programme is: to ensure that a minimum quality of service is maintained; to provide incentives for improvement in the quality of service; to create conditions for customer satisfaction; to monitor service quality; and generally to protect the interests of consumers. It is especially warranted in cases where the service provider is subject to price cap regulation, which involves the imposition of a price cap index (PCI). This is a constraint that specifies the maximum level of aggregate price change for a basket of regulated services. In order to minimise costs and therefore maximise profits, a company subject to a PCI may seek to offer a lower quality of service or product. A standards of service programme is meant to preclude this type of action.

8 There are two (2) Standards of Service categories: (1) Guaranteed Standards of Service, which require that C&W pay compensation by way of credit to each individual customer who is affected by its failure to meet the defined targets for the relevant Standards; and (2) Overall Standards of Service, which are designed to monitor the overall performance of C&W. There is no compensation to customers for C&W's failure to meet Overall Standards.

9 This Decision also includes details of exemptions. Exemptions refer to situations where the Commission considers that failure to meet the Standards is due to circumstances outside the control of C&W.

2.1 Legislative Framework

Authority to Establish Standards of Service

10 According to the FTCA, “Standards of Service” is defined at Section 2 as ‘ the quality and extent of service supplied by service providers’.

11 Section 4(3) of the FTCA and Sections 3(1) and 4 of the URA set out the Commission's authority to determine the Standards of Service for a regulated entity and the considerations that must be given when determining the same. Rule 63(2) of the Utilities Regulation Procedural Rules 2003, S.I. 2003 No.104 (Barbados) (URPR), details the issues that may be included in the development of these Standards of Service. Together, these pieces of legislation provide the over-arching framework necessary for the development and establishment of the Standards of Service for a regulated sector.

12 Section 4(3) of the FTCA states inter alia:

“The Commission shall, in the performance of its functions and in pursuance of the objectives set out in subsections (1) and (2),…

• (d) determine the standards of service applicable to service providers;

• (e) monitor the standards of service supplied by service providers to ensure compliance;”

13 Section 3(1) of the URA states inter alia:

“The functions of the Commission under this Act are, in relation to service providers, to…

• (d) determine the standards of service applicable;

• (e) monitor the standards of service supplied to ensure compliance; and

• (f) carry out periodic reviews of the … standards of service.”

14 Additionally, Section 4 of the URA states inter alia:

“In determining standards of service, the Commission shall have regard to

• (a) the rates being charged by the service provider for supplying a utility service;

• (b) ensuring that consumers are provided with universal access to the services supplied by the service provider;….

• (d) such other matters as the Commission may consider appropriate.”

15 Rule 63(2) of the URPR states:

“Service standards may include issues such as

• (a) universality of service;

• (b)...