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Telecom Decision
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Ottawa, 27 April 1984
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Telecom Decision CRTC 84-14
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Implementation of Decision Permitting Attachment of Subscriber-Provided Telex and TWX Terminal Equipment
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For related documents see: CRTC Telecom Public Notices 1979-35, 30 November 1979; 1980-11, 1 February 1980; 1980-14, 25 February 1980; 1980-38, 5 August 1980; 1981-8, 10 March 1981; 1981-21, 29 May 1981; 1981-25, 19 June 1981; 1981-29, 29 July 1981; 1981-32, 25 September 1981; 1981-36, 20 October 1981; 1981-37, 22 October 1981; 1983-29, 23 March 1983; 1983-30, 23 March 1983; 1983-43, 7 July 1983; 1983-45, 7 July 1983; 1983-49, 20 July 1983; 1983-64, 19 October 1983; 1983-65, 19 October 1983; and Telecom Decisions CRTC 80-13, 5 August 1980; 81-19, 22 October 1981; 81-21, 2 November 1981; 81-23, 16 November 1981; 82-14, 23 November 1982; 84-11, 30 March 1984; 84-12, 24 April 1984; 84-13, 24 April 1984.
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Table of Contents
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I BACKGROUND 3
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II UNBUNDLING OF TERMINAL AND LINE RATES
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A. Access to the Telex and TWX Networks
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i) CNCP
ii) NorthwesTel and Terra Nova
iii) Bell and B.C. Tel
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B. Rates for Telex and TWX Terminal Equipment
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i) CNCP
ii) NorthwesTel and Terra Nova
iii) Bell and B.C. Tel
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III OTHER CHARGES
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A. Service Charges
i) CNCP
ii) NorthwesTel and Terra Nova
iii) Bell and B.C. Tel
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B. Diagnostic Maintenance Charges
i) CNCP
ii) NorthwesTel and Terra Nova
iii) Bell and B.C. Tel
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C. Charges for Jacks
i) CNCP
ii) NorthwesTel and Terra Nova
iii) Bell and B.C. Tel
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D. Maintenance Rates
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IV TECHNICAL ISSUES
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A. Grandfathering
i) CNCP
ii) NorthwesTel and Terra Nova
iii) Bell and B.C. Tel
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B. Directory Listing
i) CNCP
ii) NorthwesTel and Terra Nova
iii) Bell and B.C. Tel
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C. Certification Requirements
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D. Certification Label
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E. Technical Standards
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V IMPLEMENTATION
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I BACKGROUND
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In Attachment of Subscriber-Provided Terminal Equipment, Telecom Decision CRTC 82-14, 23 November 1982 (Decision 82-14), the Commission set out the terms and conditions for the attachment of subscriber-provided Telex and TWX terminal equipment to the networks of the federally-regulated terrestrial telecommunications common carriers and directed such carriers to file, for Commission approval, tariff revisions necessary to implement the terms and conditions of the decision.
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In the case of Bell Canada (Bell) and the British Columbia Telephone Company (B.C. Tel), the proposed tariffs were filed on 1 March 1983. On 7 July 1983, the Commission issued CRTC Telecom Public Notices 1983-43 and 1983-45 calling for comments by 8 August 1983. In the case of CNCP Telecommunications (CNCP), the proposed tariffs were filed on 1 June 1983. On 20 July 1983, the Commission issued CRTC Telecom Public Notice 1983-49 calling for comments by 22 August 1983. In the case of NorthwesTel Inc. (NorthwesTel) and Terra Nova Telecommunications Inc. (Terra Nova), the proposed tariffs were filed on 1 September 1983. On 19 October 1983, the Commission issued CRTC Telecom Public Notices 1983-64 and 1983-65 calling for comments by 21 November 1983.
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The following submitted comments in response to the public notices: Canadian Business Equipment Manufacturers Association (CBEMA); Canadian Manufacturers Association (CMA); Canadian Trans-Lux Corporation Ltd (CTL); Extel Communications Canada (Extel); Government of Ontario (Ontario); 3M Canada Inc. (3M).
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II UNBUNDLING OF TERMINAL AND LINE RATES
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Prior to Decision 82-14, a terminal was required to be provided as part of Telex and TWX services. Since this will no longer be the case, it is necessary to separate or "unbundle" the rate charged for such services into two components with one rate being charged for the line component and a separate rate being charged for the terminal, if rented from the carrier.
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A. Access to the Telex and TWX Networks
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i) CNCP
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CNCP proposed a monthly access charge of $55.00 for Telex service based on its perception that the value of this service exceeds that of Data Telex service, for which the current monthly access charge is $50.50.
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CBEMA and 3M argued that the proposed rate was unjustified and excessive.
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The Commission does not consider the proposed rates to be excessive or otherwise unjustified and, accordingly, approves CNCP's proposed Telex service access rate of $55.00 per month.
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ii) NorthwesTel and Terra Nova
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NorthwesTel and Terra Nova proposed the same Telex service access rate as CNCP. The Commission approves these rates as submitted.
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iii) Bell and B.C. Tel
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Bell and B.C. Tel proposed a $55.00 per month access charge for TWX service. The Commission approves these rates as submitted.
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B. Rates for Telex and TWX Terminal Equipment
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i) CNCP
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CNCP proposed to unbundle the terminal component from its existing Telex rates by subtracting its proposed $55.00 access charge from them. As a consequence of employing this methodology, existing subscribers would experience no rate impact.
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In response to a Commission request, CNCP filed evidence to demonstrate that its proposed terminal rates are compensatory. The Commission is satisfied that the proposed rates are indeed compensatory and approves CNCP's proposed rates for Telex terminals.
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The Commission also approves CNCP's proposal to reduce Data Telex terminal rates by $50.50 to reflect the fact that, whereas all CNCP's Data Telex subscribers will now be required to pay a $50.50 access charge, such a charge was formerly payable only by subscribers not obtaining their Data Telex terminal equipment from CNCP.
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ii) NorthwesTel and Terra Nova
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Both companies proposed to reduce existing rates for Telex terminals by $55.00. The Commission approves these rates as submitted.
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iii) Bell and B.C. Tel
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Both Bell and B.C. Tel also proposed to reduce existing rates for TWX terminals by $55.00. The Commission approves these rates as submitted.
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III OTHER CHARGES
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A. Service Charges
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i) CNCP
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Currently, CNCP's service charge for provision of Telex service, including installation of a basic Telex terminal, is $74.00. CNCP proposed that, in future, there should be a separate service charge of $74.00 applicable to network access and that the existing service charge should apply for terminal installation.
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CNCP proposed to reduce the terminal installation charge by $74.00 where a CNCP terminal is installed coincident with network access.
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CTL, CBEMA and 3M argued that CNCP's proposal to waive, in some circumstances, the terminal service charge was discriminatory. In response, CNCP stated that it would have no objection to deleting the terminal service charge reduction provision.
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The Commission approves CNCP's proposed rates subject to the provision that the terminal service charge not be waived where a CNCP terminal is installed coincident with network access.
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ii) NorthwesTel and Terra Nova
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NorthwesTel proposed an unbundled standard service charge, based on various work functions, to apply to its Telex offerings. The Commission directs NorthwesTel to maintain the existing service charges for terminals and directs that, for network access, the company employ the service charges approved with respect to telephone service in NorthwesTel Inc. - Implementation of Decision Permitting Attachment of Subscriber-Provided Terminal Equipment, Telecom Decision CRTC 84-12, 24 April 1984 (Decision 84-12).
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Terra Nova proposed a service charge of $72.00 for access to the Telex network plus the existing service charges for terminals. The company is directed to maintain, for terminals, its existing service charge and to employ, for network access, the service charges approved with respect to telephone service in Terra Nova Telecommunications Inc. - Implementation of Decision Permitting Attachment of Subscriber-Provided Terminal Equipment, Telecom Decision CRTC 84-13, 24 April 1984 (Decision 84-13).
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iii) Bell and B.C. Tel
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Currently, Bell's service charge for provision of TWX service, including installation of a basic TWX terminal, is $75.00. In its application, Bell proposed to apply its standard Work Function Structure (WFS) service charges in respect of both access and terminals and miscellaneous equipment. Under this proposal, the service charge for network access would be $89.25. No additional terminal access service charge would apply for a terminal installed coincidently with network access.
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Interveners expressed concern that this would favor leasing terminals from Bell. In reply, Bell stated that it intends to cease offering new terminals for installation and that, in consequence, the Company would not be favored.
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The Commission directs Bell to file rates whereby the standard WFS service charges are used in respect of network access and the existing TWX service charges are maintained for terminals.
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B.C. Tel proposed to apply its standard multi-element plan service charges for network access and to apply the existing service charge for terminals. The Commission approves these proposals.
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B. Diagnostic Maintenance Charge
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i) CNCP
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With respect to diagnostic maintenance charges for trouble testing by the carriers where subscriber-provided equipment is involved, the Commission directed the carriers, in Decision 82-14, to file diagnostic maintenance rates based on the company-wide average cost of a maintenance repair visit. CNCP proposed a charge of $46.00 for the first 20 minutes with a $13.50 charge for each additional 20 minutes.
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Based on its analysis of the information filed, the Commission has determined that the charges should be $36.70 for the first 20 minutes and $10.60 for additional 20 minutes periods. CNCP is directed to file tariff revisions accordingly.
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ii) NorthwesTel and Terra Nova
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The Commission directs NorthwesTel and Terra Nova to file rates for diagnostic maintenance equal to the rates approved in the case of telephone service in Decisions 84-12 and 84-13 respectively.
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iii) Bell and B.C. Tel
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The Commission dealt with Bell and B.C. Tel's proposals for diagnostic maintenance charges in Bell Canada and British Columbia Telephone Company - Implementation of Decision Permitting the Attachment of Subscriber-Provided Terminal Equipment, Telecom Decision CRTC 84-11, 30 March 1984. The charges approved in the case of telephone service shall also apply to TWX service.
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C. Charges for Jacks
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The Commission directs that all new service installations made by the carriers must be terminated on jacks and be provided by them at rates as approved in Section III A.
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i) CNCP
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CNCP indicated that it will not charge subscribers for converting existing hardwire connections. The Commission accepts this proposal.
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ii) NorthwesTel and Terra Nova
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For conversion of existing hardwire connections, NorthwesTel and Terra Nova are directed to apply the unbundled service charge structure approved for each company in Section III A.
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iii) Bell and B.C. Tel
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For conversion of existing hardwire connections, Bell and B.C. Tel are directed to apply the relevant unbundled service charge structure approved in Section III A.
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D. Maintenance Rates
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Decision 82-14 directed carriers providing maintenance service for subscriber-provided terminal equipment to file separate rates therefor for Commission approval. Consideration of this matter has been excluded from this decision and will be dealt with separately.
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IV TECHNICAL ISSUES
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A. Grandfathering
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i) CNCP
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In Decision 82-14, the Commission addressed the issue of grandfathering. The Commission decided that terminal equipment manufactured prior to the establishment of the Terminal Attachment Advisory Committee (TAPAC) standards and the federal Department of Communications (DOC) certification procedures for Telex and TWX equipment and of a type then already in service pursuant to the carriers' tariffs could remain in service or be attached without further attestation or certification unless subsequently modified. Extel objected to the wording of CNCP's proposed Tariff Item CRTC 4001 III, A 3.a. on the ground that no provision had been made for grandfathered equipment. In its reply, CNCP stated that this omission was an oversight and that it did not object to resubmitting these pages incorporating the wording suggested by Extel in its submission.
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The Commission agrees with this approach and directs CNCP to file for approval such revised wording.
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ii) NorthwesTel and Terra Nova
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NorthwesTel's proposed Tariff Item CRTC 3004-112.3.(F) provides for the attachment of grandfathered equipment and is approved. Terra Nova is directed to amend its tariffs to make such a provision.
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iii) Bell and B.C. Tel
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To implement the grandfathering provision of Decision 82-14, B.C. Tel proposed the following wording for Item 200.A.6.(c):
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TWX terminal equipment of a type already in service pursuant to the Company's tariffs, or the
standards approved by TAPAC and certified by DOC, may remain in service or be attached
without further certification unless subsequently modified.
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CTL objected to this wording on the grounds it would allow B.C. Tel to continue to attach newly manufactured TWX terminals without certification, provided they are of a type already in service pursuant to the company's tariffs. In reply, B.C. Tel stated that, since its current line of terminals is obsolete and is no longer manufactured, it will not be purchasing more of these units for lease or outright sale. B.C. Tel also stated that new terminals purchased for TWX use will be DOC certified.
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Notwithstanding B.C. Tel's reply, the Commission directs the company to file for approval revised wording for this Item which clearly states that the grandfathering provision applies only to equipment manufactured prior to the dates specified in Decision 82-14.
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The Commission accepts Bell's proposal as submitted.
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B. Directory Listing
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i) CNCP
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CNCP's proposed Tariff Item CRTC 4001 III A.3.b. specifies that each subscriber whose equipment bears a DOC label indicating compliance with Certification Standard CS-05 (CS-05), or whose equipment is provided by CNCP, shall be listed once in a directory furnished by CNCP. Extel proposed alternate wording incorporating grandfathering provisions.
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In the Commission's view, all Telex service subscribers should be listed in the Telex directory. CNCP is directed to file tariff revisions accordingly.
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ii) NorthwesTel and Terra Nova
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Terra Nova's proposed Tariff Item CRTC 2004-208 specifies that each subscriber whose equipment bears a DOC label indicating compliance with CS-05, or whose equipment is provided by the Company, shall be listed once in a directory furnished by Terra Nova.
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Consistent with the directions given CNCP, Terra Nova is directed to amend its tariffs so as to provide for a listing of all Telex subscribers.
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NorthwesTel's existing tariffs provide that all Telex subscribers receive a listing in its Telex directory. The Commission finds NorthwesTel's existing tariffs acceptable in this regard.
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iii) Bell and B.C. Tel
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Bell and B.C. Tel's proposed tariffs with respect to TWX directory listings are consistent with the foregoing and are approved as filed.
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C. Certification Requirements
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Both CTL and CBEMA noted that CNCP's tariff does not require that non-grandfathered terminals provided by CNCP also be certified. In reply to these concerns, CNCP acknowledged that Decision 82-14 required that all newly-manufactured terminal equipment provided by CNCP must also be certified. However, CNCP noted that, since its tariff describes the terms and conditions governing the attachment of subscriber-provided equipment, it was not necessary to state CNCP's obligations in its tariff. The Commission agrees that it is unnecessary for CNCP to state its obligations resulting from Decision 82-14 in its tariff. Similarly, it is not necessary for any of the other carriers to do so.
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D. Certification Label
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3M noted that CNCP's proposed tariffs specify that the certification label attached to certified terminal equipment must be provided by DOC and argued that this procedure is an awkward one. In reply, CNCP stated that it did not see any difference in the labelling process as between CS-03 and CS-05, and that the objective of the process was to signify compliance with a certification standard in the most efficient way.
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Should certification procedures be revised, it may be necessary to revise certain tariff wording, of both CNCP and the other carriers, so as to reflect such revisions. No tariff changes are, however, required at this time.
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E. Technical Standards
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In its comments, 3M objected to the inclusion in CS-05 of performance standards which do not relate to network protection. CBEMA provided a description of the work undertaken by TAPAC to develop CS-05 and stated its dissatisfaction with that process. CBEMA stated that it had serious concerns with CS-05 and had voted against it in TAPAC. CBEMA annexed a copy of its comments to the TAPAC letter ballot and indicated that only two of the concerns raised therein had been resolved by TAPAC. CBEMA also stated that it did not know the results of the TAPAC letter ballot on the adoption of CS-05 and questioned whether consensus had been achieved.
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CNCP stated that CS-05 is comprised of two distinct parts. The first of these, contained in sections 2 and 3 of CS-05, is in its view required to protect the integrity of the Telex network. The second of these, contained in section 4, is required to protect the integrity of the Telex service. CNCP stated that, in developing standards, TAPAC should consider both the requirements of network protection and of service viability.
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In the Commission's view, the primary purpose of technical standards such as CS-05 should be to protect the integrity of a network. In this regard, it is noted that the scope of CS-05 is stated in section 1 thereof as follows:
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This document sets forth the minimum technical requirements for the certification of terminal
equipment attached to the Canadian Telex network. The requirements contained herein are
intended for the protection of the communications network and will not afford the user any
mesure of equipment performance of safety other than those covered by CSA approval.
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The Commission considers that, to a large extent, the competitive market, rather than the standards making process, can be relied upon to assure that equipment performance is satisfactory and, to that extent, that service integrity is maintained. Where this is not the case, appropriate requirements can be placed in carrier tariffs.
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In this context, the Commission requests that TAPAC or its successor body review CS-05 with the objective of more clearly limiting it to the minimum standards necessary to assure the protection of network integrity.
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Pending this review, the Commission notes that manufacturers are only required to provide an attestation of compliance with section 4 of CS-05, and that their equipment need not be submitted for testing for compliance with that section. Further, the Commission notes that section 5 of CS-05, entitled "Reference Information", does not set mandatory requirements for certification. In these circumstances, the Commission considers that CS-05 is acceptable for certification purposes at this time.
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V IMPLEMENTATION
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With the exception of the changes directed to be made in this decision, the tariff revisions proposed by the telecommunications common carriers regarding Telex and TWX are approved. The Commission hereby directs the carriers to file by 21 May 1984, to be effective 8 June 1984, proposed tariff revisions necessary to implement this decision.
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The Commission further directs the carriers to prepare, for Commission approval, a billing insert providing information regarding the terminal equipment options now available to their respective Telex or TWX subscribers. Included in this information should be a clear explanation of the diagnostic maintenance charges that will apply with respect to a subscriber requested premise visit where trouble is found to be located in subscriber-provided terminal equipment.
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J.G. Patenaude
Secretary General
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