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Ottawa, 26 October 1994
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Telecom Public Notice CRTC 94-51
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CONTRIBUTION REGIME IN ALBERTA
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I BACKGROUND
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In AGT Limited - Interconnection of Interexchange Carriers and Related Resale and Sharing Issues, Telecom Decision CRTC 93-17, 29 October 1993 (Decision 93-17), the Commission established the terms and conditions for competition in the provision of public long distance voice telephone services in the territory of AGT Limited (AGT). In that Decision, the Commission considered that competitors' toll traffic originating in Edmonton, like toll traffic originating elsewhere in Alberta, should continue to contribute towards non-self-supporting services in the rest of the province on the basis of foregone contribution. Moveover, the Commission considered that direct contribution payments to AGT for toll traffic originated and terminated in Edmonton by interexchange carriers and resellers was the most efficient means of accomplishing this objective.
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On 11 February 1994, Edmonton Telephones Corporation (Ed Tel) filed an application requesting that the Commission review and vary Decision 93-17 pursuant to section 62 of the Telecommunications Act. Ed Tel requested that the Commission alter the contribution regime to require contribution payments to AGT only in those instances where there is interconnection with AGT.
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In Ed Tel - Application for a Review and Variance of Telecom Decision CRTC 93-17, Telecom Decision CRTC 94-21, 26 October 1994 (Decision 94-21), the Commission found that Ed Tel had failed to establish sufficient grounds with respect to an error in law, a new principle or substantial doubt as to the correctness of the decision to warrant a review and variance of Decision 93-17. However, the Commission was of the view that there have been changes in circumstances since the Decision that warrant a re-examination of the contribution regime in Alberta. In this context, the Commission noted that, as a result of the Supreme Court of Canada's decision in Attorney-General of Quebec et al. v. Téléphone Guèvremont, Ed Tel is now under the Commission's jurisdiction, permitting it to re-examine the contribution regime in Alberta in a manner that takes into consideration the local/access shortfall in the operating territories of both Ed Tel and AGT.
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In addition, the Commission noted that, on 16 September 1994, it issued Review of Regulatory Framework, Telecom Decision CRTC 94-19, in which it determined that the rate bases of the telephone companies subject to the Decision (which include AGT) should be split into Competitive and Utility segments and that charges for contribution, bottleneck services and start-up costs should be recovered through a Carrier Access Tariff (CAT). The Commission expressed the view that a CAT may provide a useful mechanism to recover contribution in Ed Tel territory.
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In light of the above, the Commission is initiating a proceeding to develop an alternative method for collecting contribution from facilities based carriers and resellers operating in Alberta. The Commission invites proposals for an alternative contribution approach that would provide a better balance between the contribution requirements of both AGT and Ed Tel and reflect the local/access revenue requirement of each company in an equitable manner. In order to address this issue, the Commission will make a detailed examination of Ed Tel's costs and related traffic information. Ed Tel and those who filed comments in the proceeding leading to Decision 94-21 are made parties to this new proceeding. Other persons who wish to participate may do so in accordance with the procedure set out below.
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II PROCEDURE
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1. Ed Tel, AGT, Cam-Net Communications Inc., Canadian Business Telecommunications Alliance, Smart Talk Network and Unitel Communications Inc. are made party to this proceeding.
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2. Other persons wishing to participate fully in this proceeding must notify the Commission of their intention to do so by writing to Mr. Allan J. Darling, Secretary General, CRTC, Ottawa, Ontario, K1A 0N2, fax: 819-953-0795, by 23 November 1994. The Commission will issue a complete list of parties and their mailing addresses.
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3. Persons who wish to file comments in this proceeding, but who do not wish to participate otherwise, may do so by writing to the Commission by 5 April 1995. Copies of those comments are to be sent, by the same date, to Mr. Bohdan S. Romaniuk, Vice President, Regulatory Affairs, AGT Limited, 31st Floor, 10020-100 Street, Edmonton, Alberta, T5J 0N5, (fax: 403-493-6519), and Mr. Jim Dawson, Director, Carrier, Government and Regulatory Services, Ed Tel, 10044-108 Street, Box 20500, Edmonton, Alberta, T5J 2R4, (fax: 403- 421-9554).
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4. The Commission has addressed interrogatories to AGT and Ed Tel. AGT and Ed Tel have been directed to file responses with the Commission, serving copies on other parties to this proceeding, by 21 December 1994.
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5. Parties may file proposals with the Commission, serving copies on other parties, by 21 December 1994.
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6. Parties may address interrogatories to AGT, Ed Tel and any party filing a proposal pursuant to paragraph 5. Any such interrogatories must be filed with the Commission and served on the party or parties in question by 18 January 1995.
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7. Parties are to file responses to any interrogatories, serving copies on other parties, by 15 February 1995.
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8. Requests by parties for further responses to their interrogatories, specifying in each case why a further response is both relevant and necessary, and requests for public disclosure of information for which confidentiality has been claimed, setting out the reasons for disclosure, must be filed with the Commission and served on the party or parties in question by 22 February 1995.
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9. Written responses to requests for further responses and for public disclosure must be filed with the Commission and served on the party making the request by 1 March 1995.
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10. The Commission will issue a determination with respect to requests for further responses and for disclosure as soon as possible. The Commission intends to direct that any information to be provided pursuant to that determination be filed with the Commission and served on all parties by 15 March 1995.
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11. Parties may file final argument with the Commission, serving copies on other parties, by 5 April 1995.
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12. Parties may file reply argument with the Commission, serving copies on other parties, by 19 April 1995.
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13. Where a document is to be filed or served by a specific date, the document must be actually received, not merely mailed, by that date.
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Allan J. Darling
Secretary General
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