ARCHIVED - Telecom Order CRTC 95-892
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Telecom Order |
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Ottawa, 10 August 1995
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Telecom Order CRTC 95-892
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IN THE MATTER OF a letter, dated 12 December 1994, from Telesat Canada (Telesat), whereby, further to Telesat Canada - Forbearance for the Sale and Lease of Earth Stations, Telecom Decision CRTC 94-23, 16 November 1994 (Decision 94-23), Telesat gave notice of its intention to withdraw all of its tariffs for the sale and lease of earth stations and the balance of its non-space segment services effective 30 June 1995.
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WHEREAS the balance of Telesat's non-space segment services (bundled and standard services) were not covered by the forbearance granted in Decision 94-23;
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WHEREAS the Commission is treating this portion of Telesat's proposal as a request to extend forbearance to these services;
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WHEREAS Telesat stated that should the Commission consider that Telesat's proposal requires approval, it requests that such approval be granted administratively on an expedited basis;
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WHEREAS Telesat provided copies of its 12 December 1994 letter to all of its non-space segment customers as well as interested parties to Telecom Public Notice CRTC 94-12;
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WHEREAS no comments were received by the Commission opposing Telesat's submission;
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WHEREAS on 6 February 1995 Telesat wrote to the Commission stating that because the company's proposal as set out in its letter of 12 December 1994 had created confusion amongst its customers, it was now proposing to permit each earth segment tariff to continue in effect until the earlier of the expiry date of the term of the tariff or the expiry of the last customer contract presently in force under an earth segment general tariff;
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WHEREAS, since section 25 of the Telecommunications Act (the Act) ceased to apply to the sale and lease of earth stations effective 16 November 1994, the date of Decision 94-23, Telesat is to immediately file revised tariff pages withdrawing, for regulatory purposes, the tariffs for all the services covered by Decision 94-23;
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WHEREAS Telesat noted that a key finding in both Decision 94-23 and Telesat Canada - Forbearance for Digital Video Compression Services, Telecom Decision CRTC 94-20, 3 October 1994 (Decision 94-20) relates to the availability of essential or bottleneck services and facilities to competitors on a non-discriminatory basis and submitted that competitors will be protected in this regard since it will continue to be required to offer its space segment services on a tariffed basis;
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WHEREAS Telesat cited as a further safeguard regarding the provision of its bundled and standard services on an untariffed basis, the passage in Decision 94-20 where the Commission noted that the costing methodology used in the treatment of Telesat's bundled services results in profits or losses associated with these services flowing directly to the shareholder, thus satisfying the Commission that Telesat would not gain an unfair competitive advantage;
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WHEREAS the Commission is concerned that, vis-à-vis the provision of its bundled and standard services, it would be possible for Telesat, as the sole supplier of space segment services, to unjustly discriminate against competitors or to confer an undue preference on itself;
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WHEREAS the Commission accordingly considers that it should continue to exercise its powers and duties under section 24 and subsections 27(2), (3) and (4) of the Act, the provisions pertaining to unjust discrimination and undue preference, with respect to these services;
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WHEREAS, pursuant to subsection 34(1) of the Act, the Commission finds as a question of fact that to refrain from exercising powers and performing duties under sections 25, 29, 31 and subsections 27(1), (5) and (6) with respect to Telesat's provision of bundled and standard services would be consistent with the Canadian telecommunications policy objectives; and
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WHEREAS with reference to subsection 34(3) of the Act, the Commission finds to refrain to the extent set out above would not be likely to impair unduly the establishment or continuance of a competitive market for these services -
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IT IS HEREBY ORDERED THAT:
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1. Pursuant to subsection 34(4), effective the date of this Order, sections 25, 29, and 31 and subsections 27(1), (5) and (6) do not apply to Telesat's bundled and standard services to an extent consistent with the Commission's specific findings herein; and
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2. Telesat file revised tariff pages withdrawing the tariffs for all bundled and standard services within 10 days.
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Allan J. Darling
Secretary General |
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