Telecom Decision CRTC 2012-507

PDF version

Ottawa, 24 September 2012

TELUS Communications Company – Application for forbearance from the regulation of business local exchange services

File number: 8640-T66-201203992

In this decision, the Commission approves TCC’s request for forbearance from the regulation of business local exchange services provided in 35 exchanges in Alberta, British Columbia, and Quebec. The Commission also denies TCC’s request concerning 54 other exchanges in these provinces.

Introduction

1. The Commission received an application from TELUS Communications Company (TCC), dated 30 March 2012, in which the company requested forbearance from the regulation of business local exchange services¹ in 89 exchanges in Alberta, British Columbia, and Quebec. A list of these exchanges is set out in Appendix 1 to this decision.

2. The Commission received submissions and/or data regarding TCC’s application from Bell Canada; CityWest Cable and Telephone Corp.; Bragg Communications Inc., operating as EastLink (EastLink); Cogeco Cable Inc. (Cogeco); Distributel Communications Limited (Distributel); Iristel Inc. (Iristel); Quebecor Media Inc., on behalf of its affiliate Videotron Ltd. (Videotron); Shaw Telecom G.P. (Shaw); Xittel Telecommunications Inc. (Xittel); and one member of the general public. The public record of this proceeding, which closed on 5 July 2012, is available on the Commission’s website at www.crtc.gc.ca under “Public Proceedings” or by using the file number provided above.

Commission’s analysis and determinations

3. The Commission has assessed TCC’s application based on the local forbearance test set out in Telecom Decision 2006-15 by examining the four criteria set out below.

a) Product market

4. The Commission notes that TCC is seeking forbearance from the regulation of 63 tariffed business local exchange services. The Commission also notes that in Telecom Decisions 2008-107 and 2012-23, it found all of these services to be eligible for forbearance.

5. The Commission received no comments with respect to TCC’s proposed list of business local exchange services.

6. The Commission determines that the 63 services listed in Appendix 2 to this decision are eligible for forbearance.

b) Competitor presence test

7. The Commission notes that information provided by parties confirms that in the 35 exchanges listed in Appendix 3 there is, in addition to TCC, one independent, facilities-based, fixed-line telecommunications service provider (TSP)² that offers local exchange services and is capable of serving at least 75 percent of the number of business local exchange service lines that TCC is capable of serving.

8. The Commission therefore determines that the 35 exchanges listed in Appendix 3 to this decision meet the competitor presence test.

9. For each of the remaining 54 exchanges, the Commission notes that there is no independent, facilities-based, fixed-line TSP capable of offering local exchange services to at least 75 percent of the number of business local exchange service lines that TCC is capable of serving.

10. In 28 of these exchanges, the facilities-based, fixed-line TSP identified by TCC indicated that it was not capable of serving at least 75 percent of the number of business local exchange service lines that TCC is capable of serving.

11. For the other 26 exchanges, the TSPs identified by TCC, namely Distributel, Iristel, and Xittel, indicated that they were providing local access-independent voice over Internet protocol (VoIP) services.³

12. TCC submitted that, so long as a TSP is registered as a competitive local exchange carrier within an exchange, the type of VoIP services provided is not relevant. Consequently, TCC argued that local access-independent VoIP service providers are appropriate for consideration as part of the competitor presence test.

13. The Commission notes, however, that in Order Varying Telecom Decision CRTC 2005-28,⁴ the Governor in Council stated that while local access-dependent⁵ VoIP services are typically indistinguishable from traditional local telephone services, local access-independent VoIP services require high-speed Internet access as well as special handsets, adapters, or the use of a computer, and may be more susceptible to service deterioration or disruption. The Governor in Council considered that local access-independent VoIP services are a distinct class of local telephone services for regulatory purposes.

14. In light of the above, the Commission considers that local access-independent VoIP services are not equivalent to local access services. Accordingly, the Commission finds that Distributel, Iristel, and Xittel do not constitute independent facilities-based, fixed-line TSPs that offer local exchange services for the purposes of the local forbearance test set out in Telecom Decision 2006-15.

15. Accordingly, the Commission determines that the remaining 54 exchanges do not meet the competitor presence test.

c) Competitor quality of service (Q of S) results

16. The Commission notes that TCC submitted competitor Q of S results for the period of August 2011 to January 2012. The Commission has reviewed TCC’s competitor Q of S results and finds that TCC has met, on average, the Q of S standards for each indicator set out in Appendix B of Telecom Decision 2006-15.

17. However, the Commission notes that more than 70 percent of the services TCC provided to one competitor were below Q of S standards. The Commission considers that this would amount to consistently providing a competitor with services below Q of S standards, contrary to subparagraph 242b)(ii) of Telecom Decision 2006-15. The Commission, however, also notes that this competitor had only a few data points for the six-month period in question. In Telecom Decision 2007-58, the Commission considered that when there are only a few data points during a six-month period, there is insufficient data to make a finding that a company has consistently provided below-standard Q of S. The Commission considers that this principle applies in the case of the competitor mentioned above.

18. The Commission therefore finds that TCC has demonstrated that during this six-month period, it

i) met, on average, the Q of S standards for each indicator set out in Appendix B of Telecom Decision 2006-15, as defined in Telecom Decision 2005-20, with respect to the services provided to competitors in its territory; and

ii) did not consistently provide any of those competitors with services that were below those Q of S standards.

19. Accordingly, the Commission determines that TCC meets the competitor Q of S criterion for this period.

d) Communications plan

20. The Commission has reviewed TCC’s proposed communications plan and is satisfied that it meets the information requirements set out in Telecom Decision 2006-15. The Commission approves the proposed communications plan and directs TCC to provide the resulting communications materials to its customers, in both official languages where appropriate.

Conclusion

21. The Commission determines that TCC’s application regarding the 35 exchanges in Alberta, British Columbia, and Quebec listed in Appendix 3 meets all the local forbearance criteria set out in Telecom Decision 2006-15.

22. Pursuant to subsection 34(1) of the Telecommunications Act (the Act), the Commission finds as a question of fact that to refrain from exercising its powers and performing its duties, to the extent specified in Telecom Decision 2006-15, in relation to the provision by TCC of the business local exchange services listed in Appendix 2 and future services that fall within the definition of local exchange services set out in Telecom Public Notice 2005-2 as they pertain to business customers only, in these exchanges, would be consistent with the Canadian telecommunications policy objectives set out in section 7 of the Act.

23. Pursuant to subsection 34(2) of the Act, the Commission finds as a question of fact that these business local exchange services are subject to a level of competition in these exchanges sufficient to protect the interests of users of these services.

24. Pursuant to subsection 34(3) of the Act, the Commission finds as a question of fact that to refrain from exercising its powers and performing its duties, to the extent specified in Telecom Decision 2006-15, in relation to the provision by TCC of these business local exchange services in these exchanges would be unlikely to impair unduly the continuance of a competitive market for these services.

25. In light of the above, the Commission approves TCC’s application for forbearance from the regulation of the local exchange services listed in Appendix 2 and future services that fall within the definition of local exchange services set out in Telecom Public Notice 2005-2, as they pertain to business customers only, in the 35 exchanges listed in Appendix 3, subject to the powers and duties that the Commission has retained as set out in Telecom Decision 2006-15. This determination takes effect as of the date of this decision. The Commission directs TCC to file revised tariff pages with the Commission within 30 days of the date of this decision.

Secretary General

Related documents

• TELUS Communications Company – Application for forbearance from the regulation of business local exchange services, Telecom Decision CRTC 2012-23, 18 January 2012
• TELUS Communications Company – Application for forbearance from the regulation of business local exchange services, Telecom Decision CRTC 2008-107, 19 November 2008
• Forbearance from the regulation of residential local exchange services in Fort McMurray, Alberta, Telecom Decision CRTC 2007-58, 25 July 2007
• Forbearance from the regulation of retail local exchange services, Telecom Decision CRTC 2006-15, 6 April 2006, as amended by Order in Council P.C. 2007-532, 4 April 2007
• Forbearance from regulation of local exchange services, Telecom Public Notice CRTC 2005-2, 28 April 2005
• Finalization of quality of service rate rebate plan for competitors, Telecom Decision CRTC 2005-20, 31 March 2005

Appendix 1

TCC requested forbearance from the regulation of its business local exchange services in the following 89 exchanges:

 

Alberta

 

Acme

Beaverlodge

Bonnyville

Brooks

Caroline

Chauvin

Drayton Valley

Drumheller

Eckville

Etzikom

Grande Centre

Hanna

High Prairie

Hinton

Irma

Irricana

Jasper

Langdon

Leslieville

Lloydminster

Manning

Mayerthorpe

Milk River

Millet

Nisku

Peace River

Provost

Raymond

Rimbey

Rocky Mountain House

Spruce View

St. Paul

Stettler

Stony Plain

Sundre

Three Hills

Trochu

Vauxhall

Wainwright

Westlock

Wetaskiwin

Whitecourt

 

British Columbia

 

100 Mile House

108 Mile House

Cache Creek

Castlegar

Dawson Creek

Elkford

Golden

Gulf Islands

Hazelton

Houston

Invermere

Kaslo

Kitimat

Ladner

Merritt

Naksup

Nelson

Oliver

Osoyoos

Owama

Pender Island

Port Alice

Princeton

Salmon Arm

Sechelt

Smithers

Terrace

Trail

Ucluelet

Valemont

 

Quebec

 

Amqui

Cap-Chat

Chandler

Donnacona

Mont-Joli

Percé

St-Augustin-de-Desmaures

St-Fabien

St-Henri-de-Lévis

St-Jean-Port-Joli

St-Lambert-de-Lauzon

St-Martin

St-Pamphile

St-Prosper

St-Tite

Ste-Thècle

Val-Brillant

Appendix 2

Local exchange services eligible for forbearance from regulation in this decision (for business customers only)

Tariff	Item	List of services
1005	25	Exchange Classification and Rates – General
1005	26	Business and Residence Service
1005	27	Base Rate Areas
1005	32	Exchange Rates
1005	122	Foreign Central Office Service – Voice
1005	122-A	Foreign Central Office Service – Data
1005	132	Service to Ships and Trains
1005	150	Reserved Telephone Number Service
1005	153	Optional Hunting Arrangements
1005	157	Suspension of Service
1005	161	Call Guardian
1005	164	Dual Tone Multi-Frequency (DTMF) / Multi-Frequency (MF) Services
1005	200	Terminal Attachment Program
1005	465	Integrated Services Digital Network – Basic Rate Interface (ISDN-BRI) Service
1005	470	Integrated Services Digital Network – Primary Rate Interface (ISDN-PRI) Service
1005	470-A	Integrated Services Digital Network – Primary Rate Interface (ISDN-PRI) Monthly Non-Contracted Service
1005	490	DataDial Service
1005	495	Digital Exchange Access
18001	165	Digital Exchange Access (DEA)
18001	215	Dataline Service
18001	235	Calling Features
18001	240	Extended Area Service (EAS)
18001	295	Inbound Data Access (IDA) Service
18001	305	Denial Services
18001	310	Toll Restriction Services
18001	380	Temporary Disconnect
18001	425	Exchange Service
18001	430	Deductions – Churches, Community Centres and Senior Citizen Drop-In Centres
18001	485	Integrated Services Digital Network – Basic Rate Interface (ISDN-BRI) Service
18001	495	Integrated Services Digital Network – Primary Rate Interface (ISDN-PRI) Service
18001	505	Switched 56 Digital Service
21461	129	Directory Listings
21461	202	Individual Line Service (ILS)
21461	209	Local Calling Area (LCA) Expansion
21461	213	Centrex Service
21461	215	Direct In Dial Service
21461	216	IntelliRoute Service
21461	217	Reserved Telephone Number Service
21461	300	Call Management Services
21461	307	Special Number Search
21461	311	Dual Line Call Manager
21461	314	Remote Call Forwarding
21461	316	900 Blocking
21461	1000	Chargeable Call Intercept – Business Numbers
25080	2.03.01 a., b., d.	Basic Business Service and Regional Service
25080	2.02	Business and Residence Service
25080	2.04	Shared Use
25080	2.05	Directories and Listings
25080	2.11	Service to Immobilized Ships, Trailers and Trains
25080	2.12	Telephone Number Reservation Service
25080	2.13	Centrex Business Service
25080	2.16.03	Toll Restriction Service
25080	2.17	Direct Inward Dialling
25080	2.20	TELUS Québec’s SmartTouch Services
25080	2.21	DataMedia Service
25080	2.22	Call Display Blocking
25080	2.29	Access service 310-XXXX
25080	3.02.07 e.	Call Blocking Service – 900 Service
25080	4.08	Use of Customer-Provided Equipment with the Company’s Facilities
25080	5.03	Multiflex Service
25080	5.05	ISDN-PRI Service
25080	5.07	IntelliRoute Call Redirection
25081	5.08	Intelliroute Call Screening

---