ARCHIVED -  Telecom Public Notice CRTC 95-11

Telecom Public Notice

Ottawa, 10 March 1995

Telecom Public Notice CRTC 95-11

REVIEW OF THE REGULATORY FRAMEWORK FOR TELEGLOBE CANADA INC.

I BACKGROUND

In Teleglobe Canada Inc. - Regulation After the Transitional Period, CRTC Telecom Public Notice 1990-102, 20 December 1990 (Public Notice 90-102), the Commission initiated a proceeding to address issues related to the regulation of Teleglobe Canada Inc. (Teleglobe) after the transitional period, i.e., the period from 1 January 1988 to 31 December 1991. In that Public Notice, the Commission specifically sought submissions regarding possible alternative forms of regulation for Teleglobe.

In its 26 March 1991 Memoranda of Support filed in the above-noted proceeding, Teleglobe stated that it planned to further examine regulatory alternatives with a view to developing a specific proposal for the Commission's consideration in the short to medium term. In response to Commission interrogatories, filed on 27 May and on 2 July 1991, the company commented generally on the applicability of possible regulatory regimes. However, in its supplementary evidence of 27 May 1991, Teleglobe stated that it did not plan to file a concrete proposal for an alternative regulatory regime until 1992 or 1993.

During the oral hearing leading to Teleglobe Canada Inc. - Regulation After the Transitional Period, Telecom Decision CRTC 91-21, 19 December 1991 (Decision 91-21), the company indicated that it planned to seek more specific guidance from the Commission as to the direction it should take in investigating alternative methods of regulation. The Commission, however, stated in Decision 91-21 that it would be inappropriate for it to provide more specific guidance and that it was for the company to come forward with proposals that would address the concerns identified in Public Notice 90-102.

II THE APPLICATION

On 21 December 1994, Teleglobe filed its application and accompanying memoranda of evidence with respect to a review of the regulatory framework applicable to the company (the 21 December filing). In this application, the company is proposing an alternative regulatory regime that would consist of, among other things:

(1) a form of price regulation to replace the rate base/rate of return regulation currently applicable to the company;

(2) streamlined procedures for the approval of the rates, terms and/or conditions under which the company's services are offered, involving varying degrees of forbearance pursuant to section 34 of the Telecommunications Act (the Act);

(3) complete forbearance pursuant to section 34 of the Act for traffic that neither originates nor terminates in Canada; and

(4) reduced reporting and filing requirements.

Among other specific initiatives contained in this proposal is a commitment by Teleglobe to an annual rate reduction of at least 6%, in real terms, for its telephone services taken as a whole. Among the services referred to by Teleglobe as "telephone services" are Globeaccess-tel, (the Gateway Access Tariff), Globe 800, Globetel, and Canada Direct and other operator services. Teleglobe's price commitment would initially be based on approved rates in effect as at 1 January 1995. If such rates were not sufficiently reduced during the course of 1995 to attain the price reduction commitment for 1996, tariffs for reduced 1996 rates would be filed with the Commission no later than 1 December 1995, for implementation on 1 January 1996. A similar process would take place for the approval of reduced 1997 rates.

The company proposes that its price commitment would remain in effect until 31 December 1997. Teleglobe stated that it would endeavour to file a further proposal with the Commission prior to the end of 1997 to either revise, change or continue the proposed regime, or to apply for complete forbearance pursuant to section 34 of the Act.

The Commission hereby initiates a public proceeding to consider the appropriateness of the regulatory framework proposed by Teleglobe in its 21 December filing, including any amendments that may be appropriate.

III PROCEDURE

1. The mailing addresses to be used in this proceeding are:

Mr. Allan J. Darling
Secretary General
CRTC
Ottawa, Ontario
K1A 0N2
Fax: (819) 953-0795

Mr. Claude Fortin
Director, Regulatory Policy and Tariffs
Corporate and Legal Affairs
Teleglobe Canada Inc.
1000 de la Gauchetière Street W. Montréal, Quebec
H3B 4X5
Fax: (514) 868-7939

2. Persons wishing to participate in this proceeding (interveners) must file a notice of intention to participate with the Commission, serving a copy on Teleglobe, by 31 March 1995.

3. Teleglobe is directed to serve copies of its 21 December filing forthwith on those interveners who notify it of their intention to participate.

4. Interveners may address interrogatories to Teleglobe. Any such interrogatories are to be filed with the Commission and served on Teleglobe by 28 April 1995.

5. Teleglobe is to file responses to interrogatories, serving copies on interveners, by 26 May 1995.

6. Requests by interveners 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 Teleglobe by 5 June 1995.

7. Teleglobe's reply to requests for further responses and to requests for public disclosure are to be filed with the Commission and served on interveners by 13 June 1995.

8. The Commission will issue a determination with respect to any such requests as soon as possible.

9. Interveners may also address supplementary interrogatories to Teleglobe. Any such interrogatories are to be filed with the Commission and served on Teleglobe by 4 July 1995.

10. Teleglobe is to file responses to supplementary interrogatories, serving copies on interveners, by 28 July 1995.

11. Requests by interveners for further responses to their supplementary 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 Teleglobe by 8 August 1995.

12. Teleglobe's reply to requests for further responses and to requests for public disclosure must be filed with the Commission and served on interveners by 15 August 1995.

13. The Commission will issue a determination with respect to any such requests as soon as possible.

14. Interveners may file comments with the Commission, serving copies on Teleglobe, by 12 September 1995.

15. Teleglobe may file a reply to any comments, serving copies on interveners, by 26 September 1995.

16. 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.

Allan J. Darling
Secretary General