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Telecom Public Notice
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Ottawa, 31 July 1987
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Telecom Public Notice CRTC 1987-40
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CNCP TELECOMMUNICATONS v. BELL CANADA: CANADA-U.S. INTEREXCHANGE TRAFFIC
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In a letter dated 9 June 1987, CNCP Telecommunications (CNCP) requested that the Commission direct Bell Canada (Bell) to provide CNCP with 10 Type 2 connections for a customer in Toronto. CNCP stated that these connections were required in order to complete service, via 10 Foreign Exchange (FX) lines, between the customer's PBX in Toronto, Ontario and a US Sprint Communications Company switch in Buffalo, New York. CNCP contended that such service would be in complete conformity with the provisions of CNCP Telecommunications: Interconnection with Bell Canada, Telecom Decision CRTC 79-11, 17 May 1979 (Decision 79-11).
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On 15 June 1987, the Commission requested that Bell, by 19 June 1987, explain why it had not complied with CNCP's request for interconnection under the terms of Decision 79-11 and related tariffs. In its response, Bell expressed the view that a direct connection to a U.S. Message Toll Service (MTS) network, via Type 2 connections and CNCP's cross-border facilities, would not provide FX lines but rather would result in the extension of a U.S. MTS service directly into Bell's operating territory. Moreover, Bell contended that the service in question would be unlike FX service in that it would connect directly to a toll switch rather than a local central office switch. It was Bell's position that this type of connection is outside the scope of Decision 79-11.
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Bell noted that private lines connected to local U.S. networks can be used to access U.S. MTS networks, but took the position that such practice is discouraged by the limitations inherent in using a service for a purpose other than that for which it was designed. The company argued that, by contrast, private lines connected directly to a U.S. MTS network would provide a service designed for the explicit purpose of offering a direct substitute for its Canada-U.S. MTS service. Bell contended that such service would be attractive to its Canada-U.S. MTS business customers and would likely also erode Canada-Overseas and, potentially, Canada-Canada traffic. Bell noted that there would be a resulting decrease in contribution from MTS.
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On 8 July 1987, CNCP replied to Bell's letter. CNCP stated that the service proposed for its customer conforms to the 4 restrictions set out in Decision 79-11 governing the use of Type 1 and Type 2 connections. CNCP noted that the intention of these restrictions was to prevent CNCP from offering services analogous to MTS and Wide Area Telephone Service (WATS). Further, CNCP stated that connection to a toll switch is not precluded by U.S. regulations. Moreover, it argued that, since connection to a local switch enables a subscriber to achieve the same level of access to a U.S. MTS network as a direct connection, it is difficult to contemplate how direct connection would result in significantly greater revenue erosion.
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The application and related material may be examined at any of CNCP's business offices or at the offices of the CRTC, Room 201, Central Building, Les Terrasses de la Chaudière, 1 Promenade du Portage, Hull, Québec, or Complex Guy-Favreau, East Tower, 200 Dorchester Blvd. West, 6th floor, Montréal, Québec, or 700 West Georgia Street, Suite 1130, Vancouver, British Columbia. A copy of the application may be obtained by any interested person upon request directed to Mr. A.G. Duncan, Director, Regulatory Matters - General, CNCP Telecommunications, Suite 1907, West Tower, 3300 Bloor Street West, Toronto, Ontario, M8X 2W9.
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If you wish to comment on this application, please write to Mr. Fernand Bélisle, Secretary General, CRTC, Ottawa, Ontario, K1A 0N2, by 31 August 1987. Copies of your letter should be sent to CNCP at the above-mentioned address and to Mr. E.E. Saunders, Q.C., c/o Mr. Peter J. Knowlton, Assistant General Counsel, Bell Canada, 25 Eddy Street, 4th floor, Hull, Québec, J8Y 6N4.
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Bell may file final argument, with a copy to CNCP, by 21 September 1987, and CNCP may file its reply argument by 5 October 1987.
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Fernand Bélisle
Secretary General
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