ARCHIVED -  Telecom Public Notice CRTC 1989-37

Telecom Public Notice

Ottawa, 2 August 1989

Telecom Public Notice CRTC 1989-37

TELEGLOBE CANADA INC. - RESALE AND SHARING OF INTERNATIONAL SERVICES

In Tariff Revisions Related to Resale and Sharing, Telecom Decision CRTC 87-2, 12 February 1987 (Decision 87-2), the Commission established rules governing the resale and sharing of the private-line services of Bell Canada, British Columbia Telephone Company, Northwestel Inc., CNCP Telecommunications and Telesat Canada. In Resale and Sharing of Private-Line Voice Services, CRTC Telecom Public Notice 1989-1, 11 January 1989 (Public Notice 1989-1), the Commission initiated a proceeding to seek comment on whether it would be appropriate to modify those rules. Canadian Business Telecommunications Alliance (CBTA) and Marathon Telecommunications Corp. (Marathon), by letters dated 17 February 1989 and 21 February 1989, respectively, suggested that Teleglobe Canada Inc. (Teleglobe) be added as a party to the proceeding and that Teleglobe's tariffs be modified to permit resale and sharing.

In a letter to Teleglobe, Marathon and CBTA dated 2 March 1989, the Commission stated that it considered the matter of the resale and sharing of Teleglobe's services to be outside the scope of the proceeding initiated by Public Notice l989-1. However, the Commission requested Teleglobe to respond to the matters raised by CBTA and Marathon. Teleglobe was also requested to update its responses to interrogatories Teleglobe(CRTC)26May88-100 to Teleglobe(CRTC)26May88-103, in which the company had commented on the question of the resale and sharing of its services.

Teleglobe responded to the Commission's request by letter dated 5 April 1989. CBTA and Marathon filed their respective comments by letters dated 3 May 1989 and 5 May 1989. Teleglobe filed additional comments on 24 May 1989. CBTA replied to those additional comments by letter dated 29 May 1989.

In its initial submissions, Teleglobe stated that the Regulations that derive from the International Telecommunication Convention (the Convention) generally require that international services be exchanged between nations in accordance with the Recommendations of the Comité Consultatif International de la Télégraphie et Téléphonie (CCITT). Teleglobe submitted that those Recommendations do not provide for resale in general. However, sharing is permitted in certain circumstances. In addition, it is possible to make special arrangements, on a case-by-case basis, by mutual agreement between the administrations in question.

Teleglobe submitted that the application of Resale to Provide Primary Exchange Voice Service, Telecom Decision CRTC 87-1, 12 February 1987, and of Decision 87-2 to international services would require the concurrence of the far-end administration before end-to-end service interconnection could be effected. Therefore, those decisions could be applied only to the extent that they could be harmonized with policies at the distant end.

CBTA stated, among other things, that new Regulations supplementing the Convention will come into force on 1 July 1990. CBTA stated that the Convention and the new Regulations (particularly, Article 9) allow special arrangements between administrations. CBTA, supported by Marathon, submitted that resale and sharing could constitute special arrangements in the context of Article 9. CBTA submitted that it would not be necessary to obtain the agreement of the far-end administration on a case-by-case basis in order to allow special arrangements. CBTA contended that Article 9.1 allows any person in one country to enter into a special arrangement with any person in another country, provided that such arrangements are allowed in both countries.

CBTA submitted that Teleglobe's tariffs should contain provisions conforming to Appendix A of Decision 87-2, including any changes resulting from the proceeding initiated by Public Notice 1989-1. CBTA suggested that a provision could be added specifying that any resale and sharing arrangements between Canada and another country must be allowed by the other country. CBTA submitted that these amendments to Teleglobe's tariffs would constitute Canada a country that allows special arrangements pursuant to Article 9.

CBTA stated that it is not convinced that it is necessary to wait for the new Regulations to come into force before permitting international resale and sharing. However, CBTA considered that no significant delay or inconvenience would result if Teleglobe's tariffs are not amended until 1 July 1990.

In its additional comments, Teleglobe submitted, among other things, that the changes to its tariffs suggested by CBTA would have to await the coming into force of the new Regulations. Teleglobe also submitted that, under the new Article 9, the Government of Canada will have an obligation to ensure that a foreign service provider with whom a Canadian service provider wants to make a special arrangement is allowed to do so by the foreign Member. Therefore, assurances to that effect would have to be obtained from the other Member. In addition, the countries involved would have to agree as to the conditions under which resale and sharing are allowed. The Commission invites comments on the issues related to the resale and sharing of Teleglobe's international services. In particular, the Commission seeks comments on:

(1) whether it would be in the public interest to permit the resale and sharing of international services;

(2) to what extent the rules set out in Decision 87-2 should apply to the resale and sharing of international services; and

(3) what limitations, if any, would be necessary in order for Canada to fulfil its international obligations: for example, if resale and sharing are to be permitted, should it be by special arrangement on a case-by-case basis subject to the agreement of the countries involved, or should it be subject only to such arrangements being allowed in the other country?

PROCEDURE

(1) The submissions described in this notice, including responses to interrogatories and all correspondence, will form part of the record of the proceeding.

(2) These submissions may be examined at Teleglobe's business office or at the offices of the CRTC, Room 201, Central Building, Les Terrasses de la Chaudière, 1 Promenade du Portage, Hull, Quebec, or Complex Guy-Favreau, East Tower, 200 René-Lévesque Blvd. West, 6th floor, Montréal, Quebec. Copies may be obtained by any interested person upon request directed to Teleglobe at the address indicated below.

(3) Those who wish to comment (interveners) may do so by writing to Mr. Fernand Bélisle, Secretary General, CRTC, Ottawa, Ontario, K1A 0N2, by 2 October 1989. A copy of those comments should be sent to Mr. Jules Lemay, Director, Regulatory and Corporate Analysis, Corporate Affairs Groups, Teleglobe Canada Inc., 680 Sherbrooke St. West, Montréal, Quebec, H3A 2S4.

(4) Teleglobe may file a reply with the Commission, serving a copy on all interveners, by 1 November 1989.

Fernand Bélisle
Secretary General