ARCHIVED -  Telecom Public Notice CRTC 1993-57

This page has been archived on the Web

Information identified as archived on the Web is for reference, research or recordkeeping purposes. Archived Decisions, Notices and Orders (DNOs) remain in effect except to the extent they are amended or reversed by the Commission, a court, or the government. The text of archived information has not been altered or updated after the date of archiving. Changes to DNOs are published as “dashes” to the original DNO number. Web pages that are archived on the Web are not subject to the Government of Canada Web Standards. As per the Communications Policy of the Government of Canada, you can request alternate formats by contacting us.

Telecom Public Notice

Ottawa, 31 August 1993
Telecom Public Notice CRTC 93-57
FORBEARANCE - SALE OF TERMINAL EQUIPMENT BY CANADIAN CARRIERS
I BACKGROUND
In Attachment of Subscriber-Provided Terminal Equipment, Telecom Decision CRTC 82-14, 23 November 1982 (Decision 82-14), the Commission determined the regulatory treatment for the sale of new and in-place terminal equipment by the telephone companies then under its jurisdiction. The regulatory regime included a prohibition against the sale of new terminal equipment at a price less than the associated costs (i.e., the floor price).
Decision 82-14 was one of a series of Commission rulings that permitted the attachment of subscriber-provided terminal equipment to the networks of the telephone companies, thereby permitting competition in the supply of such equipment.
The Commission has never required the telephone companies to file tariffs setting out the sale price of terminal equipment. The Commission has considered that the price at which terminal equipment is sold does not constitute a "toll" under the Railway Act and that, accordingly, there is no statutory requirement for the companies to obtain Commission approval for the charging of such prices.
In June 1993, Parliament enacted the Telecommunications Act, S.C. 1993, c.38 (the Act), which is to come into force on 25 October 1993. Under the Act, "telecommunications service" is defined to include the provision in whole or in part of telecommunications facilities and any related equipment, whether by sale, lease or otherwise. Section 25 the Act provides that no "Canadian carrier", as defined by the Act, shall provide a telecommunications service except in accordance with a tariff filed with and approved by the Commission. It appears to the Commission that, under the Act, the sale of terminal equipment by a Canadian carrier would likely constitute the provision of a telecommunications service. If this is correct, Canadian carriers will be required to file tariffs setting out the rates to be charged for the sale of terminal equipment.
Section 34 of the Act empowers the Commission, in circumstances enumerated therein, to make a determination to refrain, in whole or in part and conditionally or unconditionally, from the exercise of certain of its powers or the performance of certain of its duties in relation to a telecommunications service or class of services provided by a Canadian carrier.
II THE COMMISSION'S PROPOSAL
The Commission considers, on a prima facie basis, that it would be appropriate to make a determination to forbear, amongst other things, from requiring the filing of tariffs for the sale of terminal equipment by Canadian carriers. It is the Commission's preliminary view that:
(1) such a determination would be consistent with the Canadian telecommunications policy objectives set out in section 7 of the Act, particularly the objective "to foster increased reliance on market forces for the provision of telecommunications services and to ensure that regulation, where required, is efficient and effective";
(2) the sale of terminal equipment by Canadian carriers is subject to competition sufficient to protect the interests of users (i.e., prospective purchasers of such equipment); and
(3) such a determination would not be likely to impair unduly the continuation of a competitive market for that service.
Accordingly, the Commission proposes, pursuant to section 34 of the Act, to make a determination to refrain from the exercise of any power and the performance of any duty under sections 24, 25 and 31 and subsections 27(1), (5) and (6) of the Act in relation to the sale of new and in-place terminal equipment by Canadian carriers. The Commission does not propose to refrain from the exercise of any power or the performance of any duty under subsections 27(2) and (4), which relate to unjust discrimination and undue or unreasonable preference or disadvantage. Accordingly, the requirement that Canadian carriers adhere to the Commission's existing regulatory regime governing the sale of terminal equipment, most recently revised in Floor Price Filing Requirements for the Sale of New Terminal Equipment, Telecom Decision CRTC 93-3, 7 April 1993, would continue to apply.
Interested parties are invited to comment on any aspect of the Commission's proposal and on whether the sale of terminal equipment by a Canadian carrier would constitute the provision of a telecommunications service within the meaning of the Act.
III PROCEDURE
1. Persons wishing to participate in this proceeding must file a notice of intention to participate by writing to Mr. Allan J. Darling, Secretary General, CRTC, Ottawa, Ontario, K1A 0N2 (fax: 819-953-0795), by 21 September 1993. The Commission will issue a complete list of parties and their mailing addresses.
2. Parties may file comments with the Commission, serving copies on all other parties, by 5 October 1993.
3. Parties may file reply comments with the Commission, serving copies on all other parties, by 19 October 1993.
4. Where a document is to be filed or served by a specific date, the document must be actually received, not merely mailed, by that date.
Allan J. Darling
Secretary General

Date modified: