ARCHIVED - Telecom Public Notice CRTC 95-53
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Telecom Public Notice |
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Ottawa, 12 December 1995
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Telecom Public Notice CRTC 95-53
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RESALE AND SHARING OF CELLULAR SERVICES
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I BACKGROUND
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The Commission has received an application from Cellular Rental Systems Inc. (CRS), dated 11 August 1995, requesting among other things that the Commission consider the issue of the resale and sharing of cellular services.
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In Resale and Sharing of Cellular Services, Telecom Decision CRTC 91-8, 30 May 1991 (Decision 91-8), the Commission denied a number of applications requesting that the Commission permit the resale and sharing of cellular services. In Decision 91-8, the Commission determined that cellular service was still in its infancy and that unrestricted resale of cellular service would reduce cellular providers' revenue needed to upgrade and expand their networks. The Commission concluded:
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"While requiring cellular providers to permit unrestricted resale might increase the choice of supply in existing markets, it would inhibit the upgrading and expansion of the underlying network. In the Commission's view, such concerns will likely diminish as the industry matures.î
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In its application, CRS submitted that the current arrangement whereby cellular service providers may choose to permit some resale/sharing applications and refuse others is no longer in the public interest, in part because it produces instances of unjust discrimination and also because it denies to consumers the same competitive benefits from resale and sharing that are now available in virtually all other sectors of the telecommunications marketplace.
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CRS also submitted that the concerns about the fledgling cellular industry have diminished over time as the industry has matured and that cellular service providers are in very robust financial condition, having experienced record revenues and operating cash flows.
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In addition, CRS noted that the issue of resale has recently arisen in Industry Canada's Policy and Call for Application - Wireless Personal Communications Services in the 2 GHz Range - Implementing PCS in Canada, 15 June 1995, wherein Industry Canada states:
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"It is government policy that:
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-the facilities and capacity of telecommunications carriers under federal jurisdiction, ..., be made available for lease, resale and sharing by service providers and other carriers on a non-discriminatory basis; and
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(...)
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It is expected that PCS applicants will indicate their intention to respect these policies by, for example, undertaking to make their future PCS and existing telecommunications facilities available to others on a resale basis. Applicants should be aware that facilities being used for the provision of cellular mobile radiotelephony services at 800 MHz are included within the scope of the policy referred to in this section.î
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In light of the above, the Commission is initiating a proceeding to consider the general issues surrounding the resale and sharing of cellular services.
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II ISSUES
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The Commission invites comment on the issue of resale and sharing of cellular services provided by all of the federally regulated cellular providers, including whether such resale and sharing is in the public interest and, if so what restrictions, if any, would be appropriate. In addition, the Commission seeks comment on what mechanisms, if any, are appropriate to ensure that cellular services would be provided to resellers/sharers on a non-discriminatory basis.
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III PROCEDURE
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1. The federally regulated providers of cellular services (cellular providers), as well as CRS, are made parties to this proceeding.
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2. Other persons wishing to participate in this proceeding (interveners), 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 11 January 1996. The Commission will issue a complete list of parties and their mailing addresses.
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3. The cellular providers may file comments on the issues identified above and any other issues that they may wish to raise, serving copies on interveners by 26 January 1996.
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4. Interveners may provide their comments on the issues identified above and on the comments of the cellular providers, serving copies on the cellular providers, by 26 February 1996
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5. The cellular providers may file a reply to any comments, serving copies on other cellular providers and on interveners who filed comments, by 7 March 1996.
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6. 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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AVI95-53_0
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