ARCHIVED -  Telecom Order CRTC 95-572

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Telecom Order

Ottawa, 18 May 1995
Telecom Order CRTC 95-572
IN THE MATTER OF an application by NeXus Telecom (NeXus) dated 21 September 1994 pursuant to section 62 of the Telecommunications Act to review and vary Telecom Order CRTC 94-874, 27 July 1994 (Order 94-874).
WHEREAS NeXus was granted an exemption from the requirement to pay contribution with respect to certain administrative lines and local Megalink circuits leased from AGT Limited (AGT);
WHEREAS NeXus noted that the exemption was only effective as of 27 July 1994;
WHEREAS NeXus noted that it applied for exemption on 24 June 1994 and that the circuits in question were installed on 6 June 1994 and began carrying traffic on 10 June 1994;
WHEREAS NeXus submitted that the exemption should have been effective from the date that the circuits were installed;
WHEREAS NeXus submitted that the discrepancy as to the effective date of the exemption leads to a sizeable contribution owing to AGT for 118 circuits from 6 June to 27 July 1994;
WHEREAS, in its 28 September 1994 answer, AGT noted that Applications for Contribution Exemptions, Telecom Decision CRTC 93-2, 1 April 1993 (Decision 93-2) provided for a process whereby, prior to the installation of services, applicants could seek expedited interim approval of an application for contribution exemption;
WHEREAS, in its 7 November 1994 reply, NeXus indicated that it was unaware of the availability of expedited interim approval, but noted that Decision 93-2 does not state that the Commission would not grant exemptions effective the date of installation unless an application for expedited interim approval was made;
WHEREAS NeXus argued that it would be unfair for AGT to receive contribution on circuits found to be exempt, particularly with respect to the Megalink circuits, since Decision 93-2 makes it clear that contribution is not payable on circuits used solely to access the telephone company's MTS/WATS services;
WHEREAS NeXus noted that exemptions were granted effective the date of installation in Decision 93-2;
WHEREAS, in a 10 November 1994 response to the NeXus reply, AGT pointed out that Decision 93-2 makes it clear in which cases an exemption respecting MTS/WATS traffic would be automatic and in which cases an application would be required;
WHEREAS AGT submitted that where a resale configuration consists of local access lines and MTS/WATS access circuits only, an application for an exemption from contribution payments is required to ensure there are no interexchange private lines connected to the reseller's switch;
WHEREAS the Commission notes that by making the exemption in question effective only from the date of the Order forward results in NeXus being needlessly prejudiced by both the comment process and the amount of time that it took for the Commission to process the application in question; and
WHEREAS, accordingly, the Commission considers that there is substantial doubt as to the correctness of Order 94-874, in so far as it granted NeXus an exemption only from 27 July 1994 -
IT IS ORDERED THAT:
Order 94-874 is varied to provide NeXus with an exemption from contribution for the circuits in question effective 6 June 1994 (date of installation).
Allan J. Darling
Secretary General

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