ARCHIVED -  Telecom Order CRTC 97-1925

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Telecom Order

Ottawa, 23 December 1997
Telecom Order CRTC 97-1925
On 24 September 1997, Telnet Communications (Telnet) filed two affidavits requesting an exemption from contribution charges with respect to Centrex systems. One affidavit affirmed that Centrex systems in the Kitchener and Drumbo exchanges are used solely for local or single-hop calling. The other affidavit affirmed that a Centrex system in the Kitchener exchange is used solely for administrative purposes.
File No.: 8626-T27-01/97
1. By letter dated 20 November 1997, Bell Canada (Bell) stated that it has reviewed the affidavits and is satisfied that they meet the evidentiary requirements for a contribution exemption on the basis that the systems will only be used for single-hop services or will be used solely for administrative calling. Accordingly, Bell agreed with the requested exemptions.
2. However, with respect to the system used for administrative purposes, Bell noted that pursuant to the Commission's determination in Telecom Order CRTC 97-590, 1 May 1997 (Order 97-590) administrative systems will attract contribution charges effective 1 January 1998. In light of this, Bell submitted that the effective date for this exemption will terminate as of 31 December 1997 unless Telnet can provide additional evidence to substantiate an exemption after that time.
3. The Commission is of the view that Telnet has met its evidentiary requirements for a contribution exemption for single-hop services and administrative calling.
4. The Commission notes that pursuant to its determination in Order 97-590, some administrative systems will attract contribution charges effective 1 January 1998. Line-side connections associated with stand-alone administrative locations or systems which are not directly connected to the Alternate Providers of Long Distance Service's network will not be required to pay contribution.
5. Accordingly, based on the above:
(a) Telnet's application is approved with effective dates as follows: (1) the date of application for the one-hop circuits located in the Kitchener and Drumbo exchanges and (2) the date of installation for the administrative circuits located in the Kitchener exchange; and
(b) in light of Order 97-590, within 5 days of the date of this Order, Telnet must provide additional evidence in affidavit form to Bell to substantiate an ongoing exemption (after 31 December 1997) for the Kitchener administrative circuits. If the line-side connections are used for a stand-alone administrative location or systems which are not directly connected to Telnet's interexchange network, the affidavit should so state this.
Laura M. Talbot-Allan
Secretary General
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