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Telecom Decision
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Ottawa, 13 February 1984
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Telecom Decision CRTC 84-8
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Bell Canada and British Columbia Telephone Company - Distribution of Telephone Directories - Applications to Review Telecom Decision CRTC 82-14
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Introduction
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On 14 February 1983 and 1 March 1983 respectively, Bell Canada (Bell) and British Columbia Telephone Company (B.C. Tel) filed applications pursuant to section 63 of the National Transportation Act requesting the Commission to review and vary that part of Attachment of Subscriber-Provided Terminal Equipment, Telecom Decision CRTC 82-14, 23 November 1982 (Decision 82-14), which established the terms and conditions governing the distribution of telephone directories by the regulated telephone companies under a liberalized terminal attachment regime.
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In Decision 82-14, the Commission directed the regulated telephone companies to provide one copy of the appropriate telephone directory, at no charge, for each access line leased by a subscriber and to furnish additional copies at tariffed rates which vary by rate group and which provide for the recovery of the related costs of printing and distributing the white pages portion of the directories. The Commission directed further that, where the yellow page and white page directories are separately bound, one copy of each shall be provided for each access line. Both Bell and B.C. Tel were directed to file the tariffs necessary to implement the terms set out above by 1 March 1983.
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In its application for review, Bell requested that the Commission substitute for the telephone directory requirements set by Decision 82-14 the requirement that each subscriber be provided at no charge with the number of directories reasonably required, up to a maximum of one directory per telephone set, irrespective of whether the set is leased from Bell or provided by the subscriber and including both white and yellow pages, whether separately bound or combined in one volume. Subscribers wishing to obtain primary directories in excess of this maximum would continue to purchase them from Tele-Direct (Publications) Inc. (Tele-Direct), the publisher of Bell's telephone directories.
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Similarly, B.C. Tel requested that the Commission substitute for the telephone directory requirements set by Decision 82-14 the requirement that each subscriber be provided at no charge with one copy of each of the appropriate white page and yellow page directories for each access line leased, with additional copies to be available on request at no charge, up to the number of additional telephones which the subscriber either leases or owns.
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Bell and B.C. Tel proposed not to file tariffs for the provision of directories since, under their proposals, directories would be distributed without charge up to the number of telephone sets a subscriber has in service.
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The Basis for Review
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In determining whether to review a decision pursuant to section 63 of the National Transportation Act, the Commission examines whether the applicant has demonstrated, on a prima facie basis, the existence of one or more of the following:
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1. an error in law or in fact;
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2. a fundamental change in circumstances or facts since the decision;
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3. a failure to consider a basic principle which had been raised in the original proceeding;
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4. a new principle which has arisen as a result of the decision.
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In addition, notwithstanding the lack of prima facie evidence that any of the above criteria have been met, it is also open to the Commission under section 63 to determine that there is substantial doubt as to the correctness of its original decision and that reappraisal is accordingly warranted. This is not so much a fifth criterion, however, as it is a statement of the residual discretion which exists within section 63.
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Positions of the Parties
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Bell and B.C. Tel (the Applicants) supported their respective applications by submitting that additional analysis and experience since the terminal attachment proceeding had led them to conclude that implementation of the requirements governing the distribution of telephone directories set by the Commission in Decision 82-14 would have an adverse financial impact on the telephone companies and on their subscribers. They argued that limiting the number of telephone directories distributed without charge would reduce overall directory circulation. This, in turn, would lead to a decrease in the amount of advertising revenues generated by the directories. Since the revenues associated with the publication of directories by companies affiliated with Bell and B.C. Tel are taken into account in establishing the general revenue requirements of the latter, this would tend to increase their revenue requirements. Bell estimated that the net negative annual financial impact on the income of Tele-Direct would be $25 million. B.C. Tel was unable to provide an estimate of the reduction in net revenues that would result from the anticipated reduction in the circulation of telephone directories. B.C. Tel also claimed that a reduction in directory circulation would have the effect of increasing its directory assistance costs.
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In CRTC Telecom Public Notice 1983-28, dated 23 March 1983, the Commission invited interested parties to comment on the applications. Comments generally supportive of the applications were received from a number of parties, including two federally-regulated carriers, NorthwesTel Inc. and Terra Nova Telecommunications Inc. It was emphasized by some parties that their support for the applications was based on the fact that the Applicants' proposal retained the important concept of equal treatment between customers of the telephone companies and customers of competing terminal equipment suppliers while ensuring that an appropriate revenue contribution to the telephone companies' general revenue requirement was generated from the distribution of telephone directories.
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Telecenter, while supporting B.C. Tel's application, claimed that many interconnect subscribers required to purchase their directory requirements in excess of one per access line, both before and after the issuance of Decision 82-14, had been unfairly affected by B.C. Tel's directory policy. Telecenter therefore asked the Commission to direct B.C. Tel to reimburse interconnect subscribers for such purchases for the period prior to Decision 82-14.
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In its response to Telecenter's comment, B.C. Tel stated that, since 1 March 1983 when it filed its application to review Decision 82-14, it had been supplying up to one white page and one yellow page directory per telephone which a subscriber leases or owns. It declared that it did not have any objection in principle to reimbursement for directories purchased prior to that date but took the position that, since the records kept by the company on the provision of directories would not make it possible to reimburse subscribers in a fair and equitable manner, no reimbursement should be ordered by the Commission.
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Conclusion
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In considering the Applicants' request that it review and vary the directions given in Decision 82-14 with regard to directory distribution, the Commission was guided by the criteria for review noted above.
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The Commission agrees that the Applicants' analysis and experience after the issuance of Decision 82-14 have disclosed a fundamental change in circumstances or facts since the decision. The Commission therefore considers, on the basis of this change, that a review of the decision is warranted.
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The Applicants have demonstrated that the overall reduction in directory circulation likely to result if a charge is levied for directories in excess of one per access line will cause a reduction in advertising revenues related to directory distribution and lead to cost increases associated with increased demand for directory assistance. The Commission agrees that this could have a detrimental effect on the Applicants' subscribers since reductions in the Applicants' net income tend to increase their revenue requirement. Accordingly, the Commission substitutes for the requirements with regard to the distribution of telephone directories set out in Decision 82-14 those set out by Bell and B.C. Tel in their applications.
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With regard to Telecenter's request that B.C. Tel's subscribers who have purchased directories in excess of one per access line be reimbursed for the purchase, the Commission considers that there are not sufficient facts on the record at this time to permit a disposition of the matter. Further, while Telecenter's request was made only with respect to B.C. Tel, the Commission is of the view that the matter of reimbursement as it affects Bell's subscribers should also be considered. Accordingly, Bell and B.C. Tel are directed to provide it with the following information by 30 March 1984:
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(a) the nature of the administrative difficulties that would be encountered in the reimbursement
of subscribers;
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(b) whether, should the Commission decide that reimbursement is appropriate, subscribers
required to purchase additional directories after Decision 82-14, as
well as subscribers required to purchase additional directories prior to Decision
82-14, should be reimbursed;
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(c) estimates of the numbers of multi-line and single-line subscribers affected, both prior to and
after Decision 82-14, and the total of the amounts to be reimbursed;
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(d) estimates of the expenses that would be entailed for the telephone company in such
reimbursements;
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(e) any other relevant facts likely to be of assistance to the Commission in considering this
matter.
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Any other party wishing to comment on the question of reimbursement for directory purchases is also invited to submit such comments to the Commission by 30 March 1984.
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J.G. Patenaude
Secretary General
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