ARCHIVED - Order CRTC 2000-888

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Order CRTC 2000-888

Ottawa, 28 September 2000
CRTC approves contribution exemption for Cannect local circuits
Reference:8626-C40-02/00
The CRTC approves a contribution exemption for local circuits provided to Cannect by Bell Canada and TCBC.

1.

By letter dated 23 February 2000, Cannect Communications Inc. applied for exemption from contribution charges for local exchange services, attaching an affidavit dated 6 March 2000. Both were received by the Commission on 15 March 2000. Cannect provided a list of wire centres located in the territories of Bell Canada and TELUS Communications (B.C.) Inc. (TCBC).

2.

By letter dated 31 March 2000, Bell Canada noted that the affidavit affirmed certain Centrex services are used solely to provide local exchange services to Cannect customers, and certain integrated service digital network (ISDN) services are used solely for local access traffic and for switched long distance traffic. At the same time, Bell Canada noted Cannect's affirmation that its Centrex services are not connected to any private line facilities provided by Bell Canada or any other service provider.

3.

Bell Canada stated that it has reviewed its files and can find no record of Centrex or ISDN services currently provided to Cannect that might be the subject of its application. In light of this, Bell Canada submitted that the Cannect request might best be characterized as a request for advance approval of an exemption.

4.

In this respect, Bell Canada noted that the affidavit contains evidence to satisfy the evidentiary requirements for such a request with respect to its facilities. Further, Bell Canada stated that the service descriptions provided by Cannect appear to be consistent with the configurations approved by the Commission in Telecom Orders CRTC 97-1555 and 97-1556, both dated 23 October 1997.

5.

Bell Canada said that if Cannect is seeking advance approval of an exemption, it would agree to exempt the ISDN and Centrex services. However, Bell Canada submitted that such approval should be conditional on Cannect providing an affidavit after it installs its first services. It should identify the services and affirm that they are configured to be compliant with exemption requirements. By letter dated 12 April 2000, Cannect agreed with Bell Canada's suggestion.

6.

By letter dated 26 April 2000, TCBC stated that it is not clear whether Cannect's contribution exemption application relates to existing or future circuits. TCBC submitted that if it is the latter, then Cannect's application constitutes a request for advance approval and any such approval should be contingent on Cannect providing specific identification of the services and their configuration when they have actually been installed.

7.

TCBC noted, however, that its customer records indicate that Cannect is already subscribing to TCBC's MicroLink and Centrex services and it should provide details regarding those circuits and their configuration.

8.

By letter dated 30 May 2000, Cannect noted that its application relates to both existing and future circuits.

9.

By letter dated 20 June 2000, TCBC reiterated that the information contained in the affidavit filed with Cannect's original application is not sufficient because it deals with domestic traffic and does not provide TCBC with any circuit details for carrier verification purpose.

10.

By letter dated 20 July 2000, Cannect provided a list of existing circuits and stated that the installed ISDN and Centrex circuits are used solely by Cannect's end-customers for local access and switched long distance traffic, and not to originate or terminate other interexchange traffic.

11.

By letter dated 1 August 2000, TCBC stated that it reviewed the information contained in Cannect's 20 July 2000 submission and believes it provided sufficient evidence as set out in Applications for contribution exemptions, Telecom Decision CRTC 93-2, dated 1 April 1993, for the contribution exemption. TCBC agreed that the effective date of contribution exemption should be the installation date of the circuits in question.

12.

With respect to the circuits in Bell Canada territory, the Commission is of the view that Cannect's request can be characterized as a request for advance approval of an exemption.

13.

The Commission grants advance approval to Cannect's application effective the date of installation, subject to Cannect providing an affidavit to Bell Canada after the installation of its first services in that telephone company's territory, identifying them and affirming that they are compliant with the requirements for an exemption.

14.

With respect to circuits in TCBC territory, the Commission is of the view that Cannect has provided evidence that satisfies the requirements for local services. The Commission approves Cannect's application effective the date of installation such that no contribution is payable.

15.

With respect to future circuits, the Commission agrees with TCBC that the established process requires that when circuits are added or changed within a configuration that has been granted a contribution exemption, the service provider need only file a simple confirmation to assure the telephone company that each service change conforms to the exemption previously granted. Should Cannect require an exemption for a different configuration or purpose, it must submit a new contribution exemption application with appropriate evidence.
Secretary General
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