ARCHIVED -  Telecom Public Notice CRTC 95-6

Telecom Public Notice

Ottawa, 7 February 1995

Telecom Public Notice CRTC 95-6

BELL CANADA - FORBEARANCE FROM REGULATION OF LAN INTERNETWORKING SERVICE

I BACKGROUND

On 23 December 1994, Bell Canada (Bell) filed an application, pursuant to section 34 of the Telecommunications Act (the Act), requesting that the Commission forbear from regulation with respect to its proposed Local Area Network (LAN) Internetworking Service.

The company states in its application that LAN Internetworking Service will provide customers with high speed LAN connections, making use of asynchronous transfer mode (ATM) and fibre technologies.

Bell notes that proposed tariff revisions providing for the introduction of LAN Internetworking Service have not as yet been filed with the Commission, but that the company is currently conducting a technical evaluation and intends to offer the service in early 1995 as a regular service offering.

Bell requests that the Commission forbear from regulation with respect to LAN Internetworking Service prior to, or coincident with, its introduction. In support of its application, the company cites two similar circumstances where the Commission granted forbearance prior to the introduction of a service offering, namely, with respect to Public Cordless Telephone Service and Telesat's Digital Video Compression Service.

Bell notes that, in Review of Regulatory Framework, Telecom Decision CRTC 94-19, 16 September 1994 (Decision 94-19), the Commission stated that it would be prepared to consider service-specific applications for forbearance for certain Competitive Network services, in advance of considering forbearing with respect to the category in its entirety.

Section 34 of the Act states as follows:

34.(1) The Commission may make a determination to refrain, in whole or in part and conditionally or unconditionally, from the exercise of any power or the performance of any duty under sections 24, 25, 27, 29 and 31 in relation to a telecommunications service or class of services provided by a Canadian carrier, where the Commission finds as a question of fact that to refrain would be consistent with the Canadian telecommunications policy objectives.

(2) Where the Commission finds as a question of fact that a telecommunications service or class of services provided by a Canadian carrier is or will be subject to competition sufficient to protect the interests of users, the Commission shall make a determination to refrain, to the extent that it considers appropriate, conditionally or unconditionally, from the exercise of any power or the performance of any duty under sections 24, 25, 27, 29 and 31 in relation to the service or class of services.

(3) The Commission shall not make a determination to refrain ... if the Commission finds as a question of fact that to refrain would be likely to impair unduly the establishment or continuance of a competitive market for that service or class of services.

Bell requests that the Commission refrain from exercising all powers and performing all duties under all of the sections noted in section 34. Those sections can be summarized as follows:

(1) section 24: the offering and provision of any telecommunications service by a Canadian carrier are subject to any conditions imposed by the Commission or included in a tariff approved by the Commission;

(2) section 25: among other things, no Canadian carrier shall provide a telecommunications service except in accordance with a tariff filed with and approved by the Commission, specifying the rate or the maximum or minimum rate, or both, to be charged;

(3) section 27: among other things, every rate charged by a Canadian carrier for a telecommunications service shall be just and reasonable, and the Canadian carrier shall not unjustly discriminate or give an undue or unreasonable preference in relation to the provision of a telecommunications service or the charging of a rate for it;

(4) section 29: no Canadian carrier shall, without the prior approval of the Commission, give effect to any agreement or arrangement, whether oral or written, with another telecommunications common carrier respecting the interchange of telecommunications, the management or operation of facilities or the apportionment of rates or revenues; and

(5) section 31: no limitation of a Canadian carrier's liability in respect of a telecommunications service is effective unless it has been authorized or prescribed by the Commission.

The Commission seeks comment regarding the appropriateness of forbearing pursuant to section 34 with respect to Bell's LAN Internetworking Service. The Commission notes that, in Decision 94-19, it detailed the factors that it will consider when assessing whether a particular market is sufficiently competitive for the Commission to refrain from regulation. Parties are requested to address these factors in their submissions. The Commission also notes that The New Brunswick Telephone Company Limited currently offers a LAN interconnect service under its general tariff, and that the Manitoba Telephone System has filed an application with the Commission for approval of a similar service.

II 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. B.A. Courtois
Vice-President
Corporate & Legal Affairs Bell Canada
105 Hôtel-de-ville Street
Hull, Quebec
J8X 4H7
Fax: 819-778-3437

2. Persons wishing to file comments with regard to Bell's application (interveners) may do so by writing to the Commission at the address noted above by 14 March 1995. A copy is to be served on Bell by the same date.

3. Bell may file a reply to any comments, serving copies on interveners, by 4 April 1995.

4. 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