ARCHIVED - Telecom Decision CRTC 95-6

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Telecom Decision
CRTC 95-6

Ottawa, 27 April 1995

AGT, NBTEL AND NEWFOUNDLAND TEL - AMENDMENTS TO THE GENERAL REGULATIONS

I BACKGROUND

On 28 August 1991, Unitel Communications Inc. (Unitel) filed a complaint with respect to The New Brunswick Telephone Company Limited (NBTel), stating, among other things, that there were disparities between the General Regulations of NBTel, AGT Limited (AGT), The Island Telephone Company Limited (Island Tel), Maritime Tel & Tel Limited (MT&T) and Newfoundland Telephone Company Limited (Newfoundland Tel) (the companies) and the Terms of Service (Terms) established in Review of the General Regulations of the Federally Regulated Terrestrial Telecommunications Common Carriers, Telecom Decision CRTC 86-7, 26 March 1986, as amended by Telecom Order CRTC 86-593, 22 September 1986 (Decision 86-7). Unitel requested that the Terms of Service established in Decision 86-7 be applied to the companies and that they be directed to file (1) proposed tariffs incorporating those Terms, or (2) the rationale supporting any objection to adopting them.

In response to a Commission direction, dated 20 December 1991, the companies filed side-by-side comparative analyses of their respective General Regulations and the Terms of Service established in Decision 86-7.

On 21 August 1992, the Commission issued Telecom Public Notice CRTC 92-45 (Public Notice 92-45), initiating a proceeding to review the General Regulations of the companies. The Commission stated that, after consideration of the submissions, it would issue for further comment any amendments it might propose with respect to the General Regulations of each company. On 15 April 1994, the Commission issued Telecom Public Notice CRTC 94-22 (Public Notice 94-22), setting out proposed Terms of Service for the companies and requesting comment on them. Comments were received in response to Public Notice 94-22 from Unitel, the National Anti-Poverty Organization (NAP0) and the companies.

The Commission notes that, when Public Notice 94-22 was issued, Island Tel and MT&T had already adopted most of the Terms of Service proposed by the Commission, the exceptions being Articles 7 and 22. On 20 September 1994, Island Tel and MT&T filed revised tariff pages incorporating Articles 7 and 22. The Commission approved the tariff pages, effective 1 January 1995, in Telecom Order CRTC 94-1275, 31 October 1994. Accordingly, in the Decision, the Commission is approving Terms of Service for Newfoundland Tel, AGT and NBTel. The approved Terms are set out in their entirety in Appendices 1, 2 and 3, respectively, along with any related tariff provisions.

II CONCLUSIONS

A. General

In the Commission's view, the balancing of the rights and obligations of companies and their customers remains as fundamentally important today as when Terms of Service were first established in Decision 86-7. However, as stated in Public Notice 94-22, the Commission considers that strict uniformity in the language of all companies' Terms of Service is not necessary, provided that the rights and obligations of each company and its customers are fully and accurately set out and that those rights and obligations are generally the same across companies. In the Commission's view, the Terms of Service approved in this Decision attain these objectives.

In general, Newfoundland Tel, AGT and NBTel accepted the Terms of Service proposed by the Commission in Public Notice 94-22. Where these companies did not agree, they proposed modifications and provided supporting rationale. These proposed modifications are discussed below.

B. Newfoundland Tel

Newfoundland Tel proposed amendments to Article 6 dealing with the grandfathering of four-party service. The Commission considers these amendments appropriate and has incorporated them into the company's Terms of Service, set out in Appendix 1.

C. AGT

1. Article 11 - Payment Time Limits and Late Payments

AGT objected to the re-introduction of "abnormal" risk of loss into Article 11.4 in reference to the circumstances in which the company may demand payment within three days. AGT stated that its inclusion could only be justified if the Commission did not trust the company to act reasonably. In addition, the company objected to the wording added to the end of the Article which states that there would have to be a substantial likelihood of loss to AGT in order for it to demand immediate payment. In AGT's view, it would be preferable to use wording that would ensure that the company could demand immediate payment in extreme circumstances when the company had reasonable grounds to believe there was a substantial likelihood of loss.

The Commission considers that AGT's proposed amendment does not keep the appropriate balance between the rights and obligations of the company and its customers, and is of the view that it should not be left to AGT's sole discretion to decide whether or not customer charges have accrued to an extent that requires early or immediate payment. The Commission, therefore, concludes that the Article should remain as proposed in Public Notice 94-22.

2. Article 12 - Deposits and Deposit Alternatives from Customers

In AGT's view, the addition of specific arrangements for third party payment was unnecessary, as the matter was sufficiently addressed in Article 12.3(d), which permits a customer to propose any alternative form of deposit that is reasonable in the circumstances. However, AGT indicated that, should the Commission deem that a reference to third party payment should be maintained, the company would prefer to use wording indicating that the third party's creditworthiness has to be established to AGT's satisfaction.

The Commission considers that the inclusion of known reasonable alternatives is desirable, and notes that the types of alternatives established in Decision 86-7 have not raised any concerns with respect to increased risk from uncollectibles. The Commission also considers that the modification proposed by AGT meets the Commission's objectives. Accordingly, the Commission approves the modification (see Articles 12.3(a) and (c)).

3. Article 15 - Restrictions on AGT's Right to Suspend and Terminate Service

AGT submitted that it is inappropriate that Article 15.4(h) require that the customer be notified, a reasonable period prior to the suspension of service, that unresolved disputes may be referred to a senior manager. AGT stated that unresolved disputes are referred to the manager of the customer service representative with whom the dispute was originally discussed. The Commission is of the view that customers who are about to have their service suspended or terminated should have access to senior management. The Commission has therefore retained the reference to a senior manager.

AGT requested the re-instatement of Article 15.5(d), which allows for immediate action to prevent the use of services by persons having no intention of paying for them. The Commission is of the view that the Article would allow the company too much discretion with respect to determining when a customer had no intention of paying for a service. The Commission notes that the company is already protected from potential loss by other provisions. Accordingly, the Commission has not included the Article in the approved Terms of Service.

AGT was of the view that, although Article 15.4(d) refers to the termination of service ten days after suspension, it does not give the company the right to actually terminate service. Accordingly, AGT requested that its originally proposed Article 15.10 be re-introduced into the Terms of Service. The Commission notes that Article 15.1, as proposed in Public Notice 94-22, provides for the automatic termination of service ten days after suspension. In the Commission's view, Article 15.1 deals effectively with AGT's concern, and the Commission has included it in AGT's approved Terms of Service.

4. Articles 16 and 17 - Telephone Directories and Telephone Directory Errors and Omissions

AGT submitted that Article 16.5 requiring that the company's consent be obtained prior to any publication or reproduction of its directories is inconsistent with the fact that authority for directories rests solely with its affiliate, AGT Directory Limited. With respect to Article 17.1, which deals with liability arising from errors or omissions in directory listings, AGT argued that its directory services are provided by AGT Directory Limited, and that therefore, AGT cannot be held responsible for ensuring the accuracy or the provision of directories.

In the Commission's view, the relationship between AGT and its directory affiliate is not materially different from the relationship between Bell Canada (Bell) and its directory affiliate, Tele-Direct (Publications) Inc. In approving Bell's Terms of Service in Decision 86-7, the Commission considered and rejected arguments similar to those advanced by AGT in this proceeding. Furthermore, as AGT supplies information to its affiliate with respect to moves, changes, etc., the Commission is of the view that the company should be held responsible. Accordingly, the Commission has retained Articles 16.5 and 17.1 in AGT's Terms of Service.

5. Article 19 - Confidentiality of Customer Records

AGT submitted that changes are required to Article 19.4(e) in order to reflect the fact that the company now contracts out more services, which results in an increased need to provide access to confidential information. The Commission considers unacceptable AGT's proposal to add provisions permitting it to provide confidential customer information to agents or other persons contracted to perform services, other than is already provided for, as it would unnecessarily broaden the relevant provisions and potentially undermine the protection afforded customers. The Commission, therefore denies AGT's proposed amendment to Article 19.4(e).

6. Article 22 - Cancellation of Service by the Customer

In AGT's view, the subject of the directory charges applicable should the customer cancel service should stand on its own and not be included in the list of exceptions in Article 22.5. AGT therefore proposed to create Articles 22.6, 22.7 and 22.8 to deal specifically with directory-related charges. The Commission finds AGT's proposal reasonable. However, the Articles in question should indicate the effective dates of cancellation. The Commission has approved AGT's proposed Articles 22.6, 22.7 and 22.8, amended accordingly.

7. Article 24 - Limitation of AGT's Liability

The company questioned the deletion of Article 24.10, which limited the company's liability for any damages or injuries sustained by reason of any fire, explosion or other occurrence resulting from the installation, use or operation of AGT facilities or equipment in any place where the atmosphere is or becomes inflammable or explosive. In AGT's view, customers operating natural gas plants or similar facilities are much better qualified to ensure that all safety standards applicable to such an environment are met when facilities and equipment are put in place by any suppliers. According to AGT, the customer should bear the risk when it chooses to embark on potentially hazardous ventures. The Commission is of the view that the liability provisions proposed in Public Notice 94-22 are appropriate and has not included AGT's proposed Article 24.10 in the approved Terms of Service.

D. NBTel

1. Article 3 - Obligation to Provide Service

Article 3.2 proposed in Public Notice 94-22 provides that, when the company has reasonable grounds to believe that an applicant intends to defraud or evade payment, it can require that the application for service be submitted in writing in order to permit it to establish the identity of the applicant or customer. In NBTel's opinion, it would be more reliable to request presentation of identification in person. The company noted that this would also assist in clearing up difficulties when different customers have identical names. The Commission agrees that identification presented in person is more reliable than in a written format. However, to require applicants who may live far from the company's offices, or who may be unable to travel, to appear in person at the company's offices would be an unnecessarily stringent requirement, exceeding those of other telephone companies. The Commission therefore approves Article 3.2 as proposed in Public Notice 94-22.

2. Article 22 - NBTel-Initiated Suspension or Termination of Service

NBTel requested that proposed Article 22.2(b) be deleted. This Article prohibits the company from suspending or terminating a customer's service for non-payment of charges for a different class of service at different premises or for service in the name of another customer. In the company's view, the ability to disconnect service in circumstances such as those excluded by Article 22.2(b) has a significant impact on its ability to maintain net bad debt at an acceptable level. NBTel considered that Article 7, regarding deposits, provides insufficient recourse. The company proposed that, until customer feedback indicates cause for concern, it be allowed to keep its current flexibility in order to ensure that bad debt remains at manageable levels.

The Commission is not persuaded that NBTel's proposal reflects the proper balance between the rights and obligations of the company and the customer. The Commission considers that the deletion of Article 22.2(b) would give the company too much discretion in determining whether to suspend or terminate a customer's service. Accordingly, the Terms of Service approved by the Commission contain Article 22.2(b) as proposed in Public Notice 94-22.

NBTel submitted that all unresolved disputes do not warrant intervention by a senior manager, and proposed that reference to a senior manager in Article 22.3(f) be deleted as it undermines the effectiveness of line managers in local offices. The Commission is of the view that customers who are about to have their service suspended or terminated should have access to senior management. Accordingly, the Commission has retained the reference to a senior manager in the Article in question.

In NBTel's opinion, the appropriate location for General Rule 18(d) (regarding bypass prohibitions), Rules 47 to 49 (regarding pole attachments), and Rules 50 to 53 and 56 to 63 (regarding connection of customer-provided equipment) is in the Terms of Service. In the Commission's view, the company has not presented sufficient evidence to alter the Commission's original determination in Public Notice 94-22 that these Rules should be contained in a separate section of the company's tariffs, following the Terms of Service.

III IMPLEMENTATION ISSUES

In Public Notice 94-22, the companies were requested to indicate the time that they would require to implement the proposed Terms of Service and to provide reasons if a six-month period would be insufficient.

NBTel did not indicate that it would have problems implementing the Terms of Service within a six-month period. AGT requested that its Terms of Service be made effective 1 January 1995. Newfoundland Tel estimated that a six-month implementation period would be sufficient; however, due to commitments of resources to other scheduled projects, it would not be possible to schedule the implementation of the Terms of Service until 1995. The company requested a three-month lead time in order to have this work prioritized and scheduled in the 1995 work program.

The Commission directs AGT, NBTel and Newfoundland Tel to file, by 29 May 1995, revised tariff pages setting out their approved Terms of Service, as well as any additions to their General Tariffs approved in this Decision, indicating that they will take effect no later than 27 October 1995. In addition, the Commission directs that customers be alerted by means of a billing insert that new Terms of Service have been approved and will be published in the introductory pages of the next telephone directory. Customers should also be notified, in both official languages, that copies of the Terms of Service in either language are available upon request and that further information can be obtained from the company's business offices.

Allan J. Darling
Secretary General

APPENDIX 1
NEWFOUNDLAND TEL

1.0 General

1.1 Except as otherwise specified, these Terms of Service apply with regard to services for which the Canadian Radio-television and Telecommunications Commission has approved a tariff.

1.2 These Terms do not limit Newfoundland Tel's liability in cases of deliberate fault or gross negligence, or of breach of contract where the breach results from the gross negligence of Newfoundland Tel.

1.3 Tariffed services offered by Newfoundland Tel are subject to the terms and conditions contained in:

(a) these Terms;

(b) applicable provisions of Newfoundland Tel's tariffs; and

All of the above bind both Newfoundland Tel and its customers.

2.0 Effective Date of Change

2.1 Subject to 2.2, changes to these Terms or the tariffs, as approved by the Commission, take effect on their effective date even though applicants or customers have not been notified of them or have paid or been billed at the old rate.

2.2 The old non-recurring charges for the transaction in question apply where service which was to be provided by a certain agreed-upon date was, through no fault of the applicant or customer, not so provided and in the meantime a rate increase has gone into effect.

3.0 Obligation to Provide Service

3.1 Newfoundland Tel is not required to provide service to an applicant where:

(a) Newfoundland Tel would have to incur unusual expenses which the applicant will not pay; for example, for securing rights of way or for special construction;

(b) the applicant refuses to provide a written application, if Newfoundland Tel so requires;

(d) the applicant does not provide a reasonable deposit or alternative required pursuant to these Terms.

3.2 Where Newfoundland Tel does not provide service on application, it will provide the applicant with a written explanation upon request.

4.0 Newfoundland Tel Facilities

4.1 Except where otherwise stipulated in its tariffs or by special agreement, Newfoundland Tel will furnish and install all facilities required to provide service.

4.2 Upon termination of service, the customer must return Newfoundland Tel equipment.

4.3 Newfoundland Tel must bear the expense of maintenance and repairs required due to normal wear and tear to its facilities, except that Newfoundland Tel may charge for the additional expense incurred when the applicant or customer requires maintenance and repair work to be performed outside of regular working hours. This section does not apply where otherwise stipulated in Newfoundland Tel's tariffs or by special agreement.

4.4 In cases where a customer has deliberately, or by virtue of a lack of reasonable care, caused loss or damage to Newfoundland Tel's equipment or facilities, Newfoundland Tel shall have the right to require the customer to pay the cost of restoration or replacement. In all cases, customers are liable for damage caused to Newfoundland Tel's equipment or facilities by customer-provided facilities.

5.0 Newfoundland Tel's Right to Enter Premises

5.1 Newfoundland Tel's agents and employees may, at reasonable hours, enter premises on which service is or is to be provided, to install, inspect, repair and remove its facilities, to inspect and perform necessary maintenance in cases of network-affecting disruptions involving customer-provided facilities, and to collect proceeds from coin telephones.

5.2 Prior to entering premises, Newfoundland Tel must obtain permission from the applicant, customer or other responsible person, except where entry is for the purposes of collecting the proceeds from coin telephones.

5.3 Entry is not subject to Articles 5.1 and 5.2 in cases of emergency or where entry is pursuant to a court order.

5.4 Upon request, Newfoundland Tel's agent or employee must show valid Newfoundland Tel identification prior to entering premises.

6.0 Basic Service

6.1 Newfoundland Tel provides single-party and two-party service. Service is provided subject to the availability of suitable facilities and applicable Newfoundland Tel policies in effect, for example, regarding grades of service provided in specific service areas. Where possible, the basic grade of service Newfoundland Tel will provide to its customers is one-party (single party) service. Four-party service is available only to those customers currently subscribing to it.

6.2 Customers who wish to change to a lower grade of service that is available may do so without charge.

7.0 Deposits and Alternatives

7.1 Except as otherwise stipulated in its tariffs, Newfoundland Tel cannot require deposits from an applicant or customer at any time unless the applicant or customer:

(a) has no credit history with Newfoundland Tel and will not provide satisfactory credit information;

(b) has an unsatisfactory credit rating with Newfoundland Tel due to payment practices in the previous two years regarding Newfoundland Tel's services; or

7.2 Newfoundland Tel will inform the applicant or customer of the specific reason for requiring a deposit, and of the possibility of providing an alternative to a deposit, such as arranging for third party payment, a bank letter of credit or a written guarantee from a third person who is a customer of Newfoundland Tel and whose credit is established to the satisfaction of Newfoundland Tel.

7.3 An applicant or customer may provide an alternative to a deposit provided it is reasonable in the circumstances.

7.4 The total amount of all deposits and alternatives provided by or for an applicant or customer may not at any time exceed three months' charges for all services, including anticipated long distance charges. However, where an applicant or customer clearly presents an abnormal risk of loss, Newfoundland Tel may require a deposit or alternative not to exceed six months' charges for all services, including anticipated long distance charges.

7.5 Deposits earn interest in accordance with the formula set out in the applicable provisions of Newfoundland Tel's tariffs.

7.6 Whenever Newfoundland Tel holds a deposit it must indicate the following on that customer's monthly account:

(a) that a deposit is being held by Newfoundland Tel in connection with the customer's account; and

(b) a telephone number of a Newfoundland Tel representative to whom any enquiries regarding the deposit may be directed.

At least once per year, Newfoundland Tel must also indicate on that customer's account the total amount of deposits held as well as the total interest accrued on the deposits.

7.7 Newfoundland Tel must review the continued appropriateness of deposits and alternative arrangements at ten month intervals, or sooner upon customer request. When service is terminated or the conditions which originally justified them are no longer present, Newfoundland Tel must promptly refund the deposit, with interest, or return the guarantee or other written undertaking, retaining only any amount then owed to it by the customer.

8.0 Restrictions on Use of Service

8.1 Service may be used by the customer and all persons having the customer's permission to use it. In the case of business telephone service, joint use within the meaning of Newfoundland Tel's tariffs is permitted only upon approval by Newfoundland Tel in accordance with the applicable provisions of its tariffs.

8.2 Customers are prohibited from using Newfoundland Tel's services or permitting them to be used for a purpose or in a manner that is contrary to law or for the purpose of making annoying or offensive calls.

8.3 Customers are prohibited from using Newfoundland Tel's services or permitting them to be used so as to prevent a fair and proportionate use by others. For this purpose, Newfoundland Tel may limit use of its services as necessary. In the case of any party line customer who unduly interferes with the use of any other service on the same line, Newfoundland Tel may require the customer to obtain a higher grade of service, where equipment and facilities are available.

8.4 Newfoundland Tel's facilities must not be re-arranged, disconnected, removed, repaired or otherwise interfered with except in cases of emergency, where specified in Newfoundland Tel's tariffs or by special agreement. Terminal equipment provided by the customer may only be connected with Newfoundland Tel's facilities pursuant to the provisions of the General Tariff or by special agreement.

8.5 No payment may be exacted, directly or indirectly from any person or by any party other than Newfoundland Tel for the use of any of Newfoundland Tel's services, except where otherwise stipulated in Newfoundland Tel's tariffs or by special agreement.

9.0 Customer Liability for Calls

9.1 Customers are responsible for paying for all calls originating from, and charged calls accepted at, their telephones, regardless of who made or accepted them.

9.2 Customers shall not be liable for charges in cases of billing error and equipment failure. In the case of third party fraud, customers shall not be liable for charges pertaining to calls which did not originate from the customer's service unless there is evidence of customer involvement.

10.0 Dispute Procedure

10.1 Customers may dispute charges for calls which they do not believe originated from or were accepted at their telephones. The dispute procedure set out in the introductory pages of the telephone directory should be followed and customers must pay the undisputed portion of the bill.

11.0 Confidentiality of Customer Records

11.1 Unless a customer consents in writing or disclosure is pursuant to a legal power, all information kept by Newfoundland Tel regarding the customer, other than the customer's name, address and listed telephone number, are confidential and may not be disclosed by Newfoundland Tel to anyone other than:

(a) the customer;

(b) a person who, in the reasonable judgement of Newfoundland Tel, is seeking the information as an agent of the customer;

(c) another telephone company, provided the information is required for the efficient and cost-effective provision of telephone service and disclosure is made on a confidential basis with the information to be used only for that purpose;

(d) a company involved in supplying the customer with telephone or telephone directory-related services, provided the information is required for that purpose and disclosure is made on a confidential basis with the information to be used only for that purpose; or

(e) an agent retained by Newfoundland Tel in the collection of the customer's account, provided the information is required for and is to be used only for that purpose.

11.2 Newfoundland Tel's liability for disclosure of information contrary to Article 11.1 is not limited by Article 16.1.

11.3 Upon request, customers are permitted to inspect any Newfoundland Tel records regarding their service.

12.0 Directories

12.1 Customers are entitled to receive, without charge, as many copies of the most recent telephone directory for their district, both white and yellow pages, and as many copies of subsequent updated directories as they are published, as are reasonably required, up to a maximum of one per telephone, whether provided by the customer or Newfoundland Tel.

12.2 Newfoundland Tel will provide, without charge, replacement directories required as a result of reasonable wear and tear.

12.3 The contents of Newfoundland Tel's directories may not be published or reproduced in any form without Newfoundland Tel's written consent.

13.0 Directory Errors and Omissions

13.1 In the case of errors or omissions in directory white and yellow pages standard listings, information service or reference of calls to another telephone number, whether or not the error or omission is with regard to a telephone number, Newfoundland Tel's liability is limited to making a refund or cancelling any charge associated with such listings for the period during which the error or omission occurred. However, where the error or omission is occasioned by Newfoundland Tel's negligence, Newfoundland Tel is also liable for the amount calculated in accordance with Article 16.1.

13.2 In the case of errors in telephone numbers in directory white and yellow pages listings, unless central office facilities are unavailable, Newfoundland Tel must provide reference of call service, free of charge, until the earlier of the termination of the customer's service or the distribution of an updated directory for that district in which the number or listing is correct.

14.0 Newfoundland Tel-Initiated Changes in Telephone Numbers and Service Arrangements

14.1 Customers do not have any property rights in telephone numbers assigned to them. Newfoundland Tel may change such numbers, provided it has reasonable grounds for doing so and has given reasonable advance written notice to the customers in question, stating the reason and anticipated date of change. In cases of emergency, oral notice with subsequent written confirmation is sufficient.

14.2 Whenever Newfoundland Tel changes a customer's telephone number on its own initiative, it will, unless there are insufficient central office terminations available, provide reference of call service without charge until the earlier of the termination of the customer's service or the distribution of an updated directory for that district showing the new number.

15.0 Refunds in Cases of Service Problems

15.1 Unless caused by negligence of the customer or by customer-provided telephone equipment connected to the local electrical supply, where there are omissions, interruptions, delays, errors or defects in transmission, or failures or defects in Newfoundland Tel facilities, Newfoundland Tel's liability is limited to a refund of charges for the service(s) affected, on request, proportionate to the length of time the problem existed. With regard to long distance service and short period private line service, the refund shall be computed in a similar manner, provided Newfoundland Tel is advised promptly of the problem. No request is necessary where a problem in primary exchange service lasts twenty-four hours or more from the time Newfoundland Tel is advised of the problem. However, where the problem is occasioned by Newfoundland Tel's negligence, Newfoundland Tel is also liable for the amount calculated in accordance with Article 16.1.

16.0 Limitation of Newfoundland Tel Liability

16.1 Except with regard to physical injuries, death or damage to customer premises or other property occasioned by its negligence, Newfoundland Tel's liability for negligence, including negligence with regard to intercept, reference of call service and emergency service from coin telephones, and also for breach of contract, where the breach results from the negligence of Newfoundland Tel, is limited to the greater of $20 and three times the amounts refunded or cancelled in accordance with Articles 13.1 and 15.1, as applicable.

16.2 Newfoundland Tel is not liable for:

(a) any act or omission of a telecommunications carrier whose facilities are used in establishing connections to points which Newfoundland Tel does not directly serve;

(b) defamation or copyright infringement arising from material transmitted or received over Newfoundland Tel's facilities;

(c) infringement of patents arising from combining or using customer-provided facilities with Newfoundland Tel's facilities; or

(d) copyright or trademark infringement, passing off or acts of unfair competition arising from directory advertisements furnished by a customer or a customer's directory listing, provided such advertisements or the information contained in such listings were received in good faith in the ordinary course of business.

17.0 Payment Time Limits

17.1 Subject to Articles 17.2 and 17.3, charges cannot be considered past due until the time prescribed in Newfoundland Tel's Late Payment Charge Tariff has expired.

17.2 In exceptional circumstances, for example when a customer has incurred a significant amount of long distance charges and presents an abnormal risk of loss to Newfoundland Tel, prior to the normal billing date Newfoundland Tel may request payment from the customer on an interim basis for the non-recurring charges that have accrued, providing the customer with details regarding the services and charges in question. In such cases, subject to Article 17.3, the charges can be considered past due three days after they are incurred or three days after Newfoundland Tel demands payment, whichever occurs later.

17.3 No charge disputed by a customer can be considered past due unless Newfoundland Tel has reasonable grounds for believing that the purpose of the dispute is to evade or delay payment.

17.4 Newfoundland Tel may request immediate payment in extreme situations, provided that a notice has been issued pursuant to Article 17.2 and the abnormal risk of loss has substantially increased since that notice was given or Newfoundland Tel has reasonable grounds for believing that the customer intends to defraud Newfoundland Tel.

18.0 Liability for Unbilled and Underbilled Charges

18.1 Unless there has been customer deception with regard to a charge, customers are not responsible for paying a previously unbilled or underbilled charge except where:

(a) in the case of a recurring charge or a charge for an international long distance message, it is correctly billed within a period of one year from the date it was incurred; or

(b) in the case of a non-recurring charge other than for an international long distance message, it is correctly billed within a period of 150 days from the date it was incurred.

18.2 In the circumstances described in Article 18.1, unless there has been customer deception, Newfoundland Tel cannot charge the customer interest on the amount of the omission or correction. If the customer is unable to promptly pay the full amount owing, Newfoundland Tel will attempt to negotiate a reasonable deferred payment agreement.

19.0 Liability for Charges That Should Not Have Been Billed and Those That Were Overbilled

19.1 In the case of a recurring charge that should not have been billed or that was overbilled, a customer shall be credited with the amount that should not have been billed or that was overbilled back to the date of the error, subject to applicable limitation periods provided by law. A customer who does not provide documentation supporting any request for further credit relating to this error within one year of the date of a corrected itemized statement for service, equipment or charges loses the right to have the excess credited for the period prior to that statement.

19.2 Non-recurring charges that should not have been billed or that were overbilled must be credited, provided that the customer disputes them within 150 days of the date of the bill.

19.3 A customer who is credited with any amount that should not have been billed or that was overbilled must also be credited with interest on that amount at the rate payable for interest on deposits that applied during the period in question.

20.0 Minimum Contract Period and Cancellation Before Service Commencement

20.1 The minimum contract period for Newfoundland Tel's services is one month commencing from the date the service is provided, except where otherwise stipulated in Newfoundland Tel's tariffs or where Newfoundland Tel has stipulated a longer period in instances in which special construction is necessary or special assemblies are installed, or where Newfoundland Tel incurs unusual expense in providing the service or equipment applied for.

20.2 A customer who cancels or delays a request for service before installation work has started cannot be charged by Newfoundland Tel. Installation work is considered to have started when the customer has advised Newfoundland Tel to proceed, and Newfoundland Tel has incurred any related expense. A customer who cancels or delays a request for service after installation work has started, but before service has started, will be charged the lesser of the full charge for the entire minimum contract period plus the installation charge and the estimated costs incurred in installation less estimated net salvage. The estimated installation costs include the cost of unsalvaged equipment and materials specifically provided or used plus the cost of installing, including engineering, supply expense, labour and supervision, and any other disbursements resulting from the installation and removal work.

21.0 Customer-Initiated Termination of Service

21.1 Customers who give Newfoundland Tel reasonable advance notice may terminate their service after expiry of the minimum contract period, in which case they must pay charges due for service which has been furnished.

21.2 Before expiry of the minimum contract period, customers may terminate their service in which case they must pay the full charges for the entire minimum contract period or, in the following circumstances, charges due for service which has been furnished:

(a) in the event of the death of a customer during the minimum contract period, the termination is effective from the date Newfoundland Tel is notified of the death;

(b) where the customer's premises are destroyed, damaged or condemned by reason of fire or other causes beyond the customer's control, so that they must be abandoned, the termination is effective from the date Newfoundland Tel is notified;

(c) in the case of directory listings for which a specific charge applies and in the case of directory listings with regard to joint use of service, in the event of the death of the listed party or any joint user or when either acquires separate telephone service, the termination is effective from the date Newfoundland Tel is notified of the death or from the date of the commencement of the separate service;

(d) where a change to the base rate, exchange or local service area affects the customer's service, the termination is effective from the date Newfoundland Tel is notified of the customer's desire to terminate service;

(e) where a customer replaces any Newfoundland Tel service with another Newfoundland Tel service, the termination is effective from the date of the replacement, subject to the terms of Newfoundland Tel's tariffs and, notwithstanding Article 1.3(c), the terms of the contract for the service in question;

(f) where a customer's service is taken over without lapse by a new customer at the same location, the termination with respect to the original customer is effective from that date. However, if at that time the new customer discontinues any of the original service or facilities, the original customer must pay the full charge for such discontinued service or facilities for the entire minimum contract period;

(g) where the circumstances specified in Article 21.2(a) through (f) do not apply, the minimum contract period is greater than one month at the same location, and the customer has given Newfoundland Tel advance notice, the termination is effective when the customer pays the termination charge specified in the contract for the service in question or, where such charge is not specified, a termination charge of one-half of the charges remaining for the unexpired portion of the minimum contract period; and

(h) in the case of directory listings for which a specific charge applies and in the case of directory listings with regard to joint use of service, where the listing has appeared in a directory and the customer's service is terminated or the listed party or joint user moves to another location, and the customer has given Newfoundland Tel advance notice, the termination is effective on the date of that service termination or move, subject to a minimum charge of one month, and as of such time as no reference of call service is provided from the old to the new number.

22.0 Newfoundland Tel-Initiated Suspension or Termination of Service

22.1 Newfoundland Tel may suspend or terminate a customer's service only where the customer:

(a) fails to pay an account of the customer that is past due, provided it exceeds fifty dollars or has been past due for more than two months;

(b) fails to provide or maintain a reasonable deposit or alternative when required to do so pursuant to these Terms;

(d) repeatedly fails to provide Newfoundland Tel with reasonable entry and access in conformity with Articles 5.1 and 5.2;

(e) uses or permits others to use any of Newfoundland Tel's services so as to prevent fair and proportionate use by others;

(f) uses or permits others to use any of Newfoundland Tel's services for a purpose or in a manner that is contrary to law or for the purpose of making annoying or offensive calls;

(g) contravenes Articles 8.4 or 8.5; or

(h) fails to provide payment when requested by Newfoundland Tel pursuant to Article 17.5.

22.2 Newfoundland Tel may not suspend or terminate service in the following circumstances:

(a) failure to pay non-tariffed charges;

(b) failure to pay charges for a different class of service at different premises or for service in the name of another customer, including failure to pay the account of another customer as a guarantor;

(d) where there is a dispute regarding the basis of the proposed suspension or termination, provided payment is being made for undisputed outstanding amounts and Newfoundland Tel does not have reasonable grounds for believing that the purpose of that dispute is to evade or delay payment.

22.3 Prior to suspension or termination, Newfoundland Tel must provide the customer with reasonable advance notice, stating:

(a) the reason for the proposed suspension or termination and the amount owing (if any);

(b) the scheduled suspension or termination date;

(c) that a reasonable deferred payment agreement can be entered into (where the reason for suspension or termination is failure to pay);

(d) the reconnection charge;

(e) the telephone number of a Newfoundland Tel representative with whom any dispute may be discussed; and

(f) that disputes unresolved with this representative may be referred to a senior Newfoundland Tel manager.

Where repeated efforts to contact the customer have failed, Newfoundland Tel must deliver such advance notice to the billing address.

22.4 In addition to the notice required by Article 22.3, Newfoundland Tel must, at least twenty-four hours prior to suspension or termination, advise the customer or another responsible person that suspension or termination is imminent, except where:

(a) repeated efforts to so advise have failed;

(b) immediate action must be taken to protect Newfoundland Tel from network harm resulting from customer-provided equipment; or

(c) the suspension or termination occurs by virtue of a failure to provide payment when requested by Newfoundland Tel pursuant to Article 17.4.

22.5 Except with customer consent or in exceptional circumstances, suspension or termination may occur only on business days between 8 a.m. and 4 p.m., unless the business day precedes a non-business day in which case disconnection may not occur after 12 noon.

22.6 Suspension or termination does not affect the customer's obligation to pay any amount owed to Newfoundland Tel.

22.7 In the case of services that have been suspended, unless suspension occurs during the minimum contract period, Newfoundland Tel must make a daily pro rata allowance based on the monthly charge for such services.

22.8 Newfoundland Tel must restore service, without undue delay, where the grounds for suspension or termination no longer exist or a payment or deferred payment agreement has been negotiated.

22.9 Where it becomes apparent that suspension or termination occurred in error or was otherwise improper, Newfoundland Tel must restore service during business hours on the next working day, at the latest, unless exceptional circumstances do not permit this, and no reconnection charges shall be levied.

ADDITIONS TO THE GENERAL TARIFF OF NEWFOUNDLAND TELEPHONE

1.0 Late Payment Charge

1.1 Rates and charges which are quoted on a monthly basis shall be payable by the customer monthly in advance. Charges for message toll and messenger service shall be payable by the customer monthly. Service charges, construction charges, and other like non-recurring charges shall be payable in accordance with the Company's Tariff.

1.2 All charges incurred by the customer or for which he is responsible shall be payable at the Company's business offices or at agencies duly authorized to receive such payments.

1.3 Failure to receive a bill showing the amount owing by the customer to the Company shall not relieve the customer from the responsibility of making prompt payment of such amount to the Company.

1.4 An administration charge applies when payment has not been received 30 days after the mailing date of the statement of account for service. This charge will apply when the unpaid portion of the account exceeds $50.00 and is at the compound rate of 1.75% per month (xx% per year) of the unpaid amount.

1.5 Any payment made by a customer with a cheque which is later deemed to be N.S.F. will be charged $7.00 in addition to his/her previous balance.

2.0 Definitions (to be included with other definitions in the General Tariff)

2.1 In the company's Terms of Service

(a) "Commission" means the Canadian Radio-television and Telecommunications Commission.

(b) "Company" means Newfoundland Telephone Company Limited.

(c) "Customer" means a person for whom telephone equipment has been installed or provided and for whom telephone service has been furnished by the Company, upon his application or request in premises designated by him.

(d) "Minimum contract period" means the stipulated minimum period of time for which the Company will furnish the service or equipment applied for, and for which the Company's charges must be paid, whether or not the service was used by the customer for the whole of such period. It commences from the date of establishment of service or the provision of the equipment.

(e) "Person" includes a partnership, firm, body corporate or politic, government or department thereof and the legal representatives of such person.

(f) "Tariff" means the Tariff of the Company filed with and approved by the Commission from time to time in force.

APPENDIX 2
AGT

GENERAL

1.0 Description of the General Terms of Service and the AGT Tariff

1.1 The Canadian Radio-television and Telecommunications Commission ("CRTC") is the federal regulatory body which regulates AGT Limited ("AGT"). The CRTC approved these General Terms of Service in Telecom Decision CRTC 95-6 dated 27 April 1995.

1.2 These General Terms of Service bind both AGT and AGT's customers.

1.3 These General Terms of Service define the basic rights and responsibilities of AGT and AGT's customers with respect to all services, facilities and equipment contained in the AGT Tariff.

1.4 For the purposes of these General Terms of Service and the AGT Tariff, the customer is the person whose name appears on the telephone bill.

1.5 These General Terms of Service are part of the AGT Tariff. The AGT Tariff also contains:

(a) descriptions of services, facilities and equipment offered by AGT,

(b) rates for those services, facilities and equipment, and

The complete AGT Tariff is available for public viewing at AGT business offices.

1.6 Services offered by AGT under the AGT Tariff are subject to the terms and conditions contained in:

(a) these General Terms of Service, and

(b) applicable provisions of AGT's tariffs.

1.7 Where the AGT Tariff contains terms of service which apply only to specific services, facilities or equipment, those specific terms of service override corresponding parts of these General Terms of Service that are inconsistent with those specific terms.

1.8 AGT and the customer may agree in writing to additional terms of service, as long as those additional terms of service do not conflict with these General Terms of Service or the AGT Tariff.

2.0 Effective Date of Changes to the General Terms of Service or the AGT Tariff

2.1 Before changes to these General Terms of Service or the AGT Tariff can take effect, they must be authorized by the CRTC.

2.2 Changes to these General Terms of Service and the AGT Tariff go into effect on the effective date authorized by the CRTC.

2.3 When rate increases or decreases are authorized by the CRTC, AGT must adjust customer accounts as of the effective date. Customers must pay the new rate whether or not they were notified of the change. In addition, customers must pay the new rate even if they were billed at the old rate or paid at the old rate.

2.4 Despite the general rule in Item 2.3, when there is a rate increase, except for an increase in monthly or other periodic rates, the customer will pay the lower rate if:

(a) AGT agreed to provide service by a certain date and did not do so,

(b) AGT's failure to provide service by that date was not caused by the customer, and

(c) the rate increases went into effect between the date service should have been provided and the date it was actually provided.

AGT'S OBLIGATIONS AND RESPONSIBILITIES

3.0 AGT's Obligation to Provide Service

3.1 AGT must provide service to all customers who apply except when:

(a) the customer applying for service owes money to AGT, other than as a guarantor, and refuses to pay the amount owed or refuses to make payment arrangements acceptable to AGT,

(b) the customer applying for service does not provide a deposit or deposit alternative if required under Item 12.1,

(c) AGT cannot acquire or maintain the equipment, facilities, rights-of-way, rights-of-access, or space in or on buildings that are necessary to provide service, or

(d) the customer applying for service does not carry out the customer's responsibilities in Item 5.1 before service begins.

3.2 If the customer asks for a written explanation of a refusal to provide service, AGT must provide the written explanation within a reasonable amount of time.

4.0 What AGT Provides, Maintains and Repairs

4.1 AGT provides service to the customer at the Customer Connection Point. The Customer Connection Point is also referred to as the "Network Interface Demarcation Point" in other parts of the AGT Tariff.

4.2 The Customer Connection Point is provided by AGT. It is located at the point at which AGT's facilities end and the customer's facilities begin. In most cases the Customer Connection Point will be located at the customer's premises. Item 25 establishes the rules for the location of the Customer Connection Point.

4.3 AGT will provide, install, maintain and repair all facilities and equipment necessary to extend service through AGT's telecommunications network up to and including the Customer Connection Point unless an agreement between the customer and AGT provides otherwise.

4.4 AGT must maintain and repair AGT facilities and equipment at no charge to the customer unless:

(a) the maintenance or repair is required for reasons other than normal wear and tear,

(b) the customer asks that the maintenance or repair be done outside of normal business hours, or

4.5 AGT has no obligation to maintain or repair facilities or equipment owned by the customer. However, if the customer asks, AGT may provide maintenance and repair service to the customer's facilities and equipment according to the terms in the AGT Tariff.

CUSTOMER'S OBLIGATIONS AND RESPONSIBILITIES

5.0 Customer's Responsibilities Before Service Begins

5.1 Before service begins, the customer must:

(a) apply to AGT for service,

(b) provide a location for the Customer Connection Point suitable to AGT,

(c) allow AGT to enter the customer's property and premises in order to provide, install, maintain or repair the AGT facilities and equipment which will be connected to the customer's facilities and equipment at the Customer Connection Point,

(d) agree to pay any unusual costs and expenses that are necessary to construct, install or acquire equipment, facilities, rights-of-way, rights-of-access or space in or on buildings that are necessary to extend service through AGT's telecommunications network up to and including the Customer Connection Point, and

(e) either provide or agree to pay AGT for all trenching, backfilling, poles, conduits or other facilities which AGT requires to extend AGT facilities from the customer's property line to the Customer Connection Point.

6.0 Customer's Ongoing Responsibilities

6.1 The customer must supply all facilities and equipment including, for example, all wiring inside the customer's premises and all telephone terminal equipment, necessary to connect the customer's facilities and equipment to AGT's telecommunications network at the Customer Connection Point.

6.2 The customer must make sure that all facilities and equipment which the customer connects to the Customer Connection Point meet the technical standards contained in the Industry Canada Certified Standards and bear an Industry Canada label indicating that the facilities and equipment comply with the Certified Standards. Customers should refer to Item 175 of the AGT Tariff for complete terms and conditions regarding attachments to AGT facilities and equipment. The Industry Canada Certified Standards and the AGT Tariff are available for public viewing at AGT business offices.

6.3 Customers must make sure that there is safe and reasonable access to the Customer Connection Point at all times.

6.4 Customers must change their facilities or equipment, or any other facilities or equipment connected at the Customer Connection Point, if AGT determines that the facilities or equipment could or do:

(a) cause harm to the operation of AGT facilities or equipment, even if the customer's facilities or equipment meet the Industry Canada Certified Standards described in Item 6.2,

(b) cause interference with service provided to other customers, or

6.5 When electrical power is required to provide service to the customer, the customer must supply the power at no charge to AGT.

7.0 Restrictions on Use of Telephone Service

7.1 Customers are responsible to make sure that the services provided to them by AGT are not used:

(a) for an illegal purpose,

(b) in an illegal manner,

(d) in any way which prevents other customers from being able to fairly and proportionately use the services provided by AGT.

7.2 AGT may, at any time, limit the use of any services provided to a customer or group of customers in order to ensure that fair and proportionate use is available to all AGT customers.

7.3 No customer or any other person may directly or indirectly charge any person for the use of any AGT service unless authorized by specific Items in the AGT Tariff or by written agreement with AGT.

7.4 No customer or any other person may re-arrange, disconnect, remove, repair, or otherwise interfere with any AGT facilities or equipment except:

(a) in cases of emergency,

(b) in any case specified in these General Terms of Service or the AGT Tariff, or

8.0 Customer's Responsibility for Charges

8.1 The customer must pay all applicable monthly charges in advance. Other periodic charges and applicable service charges must be paid in accordance with the AGT Tariff. The customer must also pay for all calls:

(a) placed from the customer's telephone,

(b) placed through the Customer Connection Point at which the customer receives service,

(c) received at the customer's telephone or through the Customer Connection Point where the charges have been accepted by a person receiving the call, or

(d) charged to the customer's telephone number, the customer's AGT Calling Card or to the customer through other credit arrangements approved by AGT.

The customer must pay for these calls regardless of whether the person who placed the call, accepted the charges or charged the call had the customer's permission to do so.

8.2 AGT's agreements with other telephone companies may require AGT to bill for services provided by those companies to AGT customers. If those services, or any facilities or equipment used to provide those services, are subject to sales tax, AGT may add the sales tax to the customer's bill and it is the customer's responsibility to pay the amount of the sales tax as part of the telephone bill.

8.3 If any level of government passes a law that requires AGT to collect taxes from customers on any basis, AGT may add the tax to the customer's bill. It is the customer's responsibility to pay the amount of the tax as part of the telephone bill.

9.0 Customer's Responsibility for Previously Unbilled or Underbilled Charges

9.1 The customer is not responsible for paying an unbilled or underbilled portion of a charge unless:

(a) in the case of a monthly or other periodic charge, AGT correctly bills the charge within one year from the date it was incurred, or

(b) in the case of a charge other than a monthly or other periodic charge, AGT correctly bills the charge within 150 days from the date it was incurred.

9.2 If the customer is unable to immediately pay the full corrected amount owing, AGT must attempt to negotiate a deferred payment arrangement.

9.3 If the customer has intentionally deceived AGT regarding an unbilled or underbilled charge, AGT may bill the customer for that charge, even if the time limits in Item 9.1 have passed, and may charge interest from the date that the charge would have been overdue if it had been billed correctly.

10.0 Minimum Charge for the Minimum Contract Period and Cancellation Before Service Begins

10.1 The normal minimum contract period for AGT services is one month. However, the AGT Tariff may specify a longer minimum contract period for some services and customers may agree to a longer minimum contract period where special construction is necessary or special assemblies are installed.

10.2 If service is terminated by AGT, or cancelled by the customer, during the minimum contract period, the customer is still responsible to pay the full rate for the minimum contract period.

10.3 If the customer cancels the request for service or asks that the start of service be delayed before installation work has begun, AGT cannot charge the customer for the service.

10.4 For the purpose of these General Terms of Service, installation work has begun when:

(a) the customer has told AGT to proceed, and

(b) AGT has incurred any costs specifically related to providing the service to the customer which are over and above the cost of receiving and processing the request for service.

10.5 If the customer cancels the request for service or asks that the start of service be delayed after installation work has begun but before service has started, AGT will charge the customer the lower of the following two amounts:

(a) the rate for the minimum contract period plus the rate to establish service, and

(b) AGT's estimated costs of installation minus estimated net salvage. The estimated costs of installation include:

· the cost of unsalvaged equipment and materials specifically provided or used for the installation,

· the cost of labour,

· engineering costs,

· supply expense,

· supervision costs, and

· any other expenses resulting from the installation and removal work.

11.0 Payment Time Limits and Late Payments

11.1 All charges shown on the customer's bill are due on the due date shown on the bill. If the customer's bill is lost or the customer does not receive the bill, the customer is still responsible for making the required payment to AGT. AGT will begin collection procedures immediately when an account becomes past due. Suspension procedures will begin as soon as they are allowed by Item 15.2(a).

11.2 All charges not paid by the due date are past due and will bear interest at the interest rate shown on the customer's bill.

11.3 If the customer disputes a charge, the charge cannot be considered past due unless AGT has reasonable grounds for believing that the only reason for the dispute is to evade or delay payment.

11.4 If at any time AGT considers that the customer's charges are significantly higher than normally expected and the customer presents an abnormal risk of loss to AGT, AGT may demand that the customer pay the charges within three days. AGT must provide the customer with details of the services and charges in question at the time AGT demands payment. In extreme circumstances, AGT may demand that the customer pay the charges immediately, provided that there is substantial likelihood of loss to AGT. In that case AGT must provide the customer with details of the services and charges in question as soon as possible.

11.5 If a customer's account is paid by cheque and the cheque is returned to AGT without payment, the customer must pay the administration charge set out in the AGT Tariff.

AGT'S RIGHTS

12.0 Deposits and Deposit Alternatives from Customers

12.1 AGT may require a deposit from a customer only in the following circumstances:

(a) before service is provided, if the customer has no credit history with AGT and does not provide proof of creditworthiness satisfactory to AGT,

(b) if the customer has an unsatisfactory credit rating with AGT resulting from payment practices in the previous two years for AGT services, and does not provide current proof of creditworthiness satisfactory to AGT, or

12.2 AGT must not require a customer to pay a deposit or provide a deposit alternative in an amount which is greater than all anticipated charges, including long distance charges, for three months of service.

12.3 If AGT requires a deposit, it must tell the customer why the deposit is required and also tell the customer that AGT will accept any of the following deposit alternatives:

(a) a written guarantee from another person whose creditworthiness has been established to AGT's satisfaction,

(b) a bank letter of credit,

(c) an arrangement for payment of the customer's account by another person whose creditworthiness has been established to AGT's satisfaction, or

(d) any other alternative proposed by the customer that is reasonable in the circumstances.

12.4 The amount of any deposit required by AGT may be reduced if the customer requests that AGT block all long distance calls originating through the Customer Connection Point.

12.5 Deposits earn interest during the six month period following January 1 and July 1 each year at a rate equal to the rate established on those dates for daily interest savings accounts at the Bank of Montreal, Main Branch, Edmonton, Alberta.

12.6 Interest on deposits will be credited to the customer's bill each month.

12.7 AGT must show the amount of the customer's deposit on the customer's monthly bill.

12.8 AGT will review the requirement for a deposit or deposit alternative and the amount of the deposit or deposit alternative at least once every six months or at any time if the customer requests. If AGT finds that the amount of the deposit or deposit alternative exceeds anticipated charges for three months of service including long distance service, AGT must refund the excess amount of the deposit or reduce the required amount of the deposit alternative to the appropriate level.

12.9 When the conditions which originally justified a deposit or deposit alternative are no longer present:

(a) AGT will return the deposit and accrued interest to the customer and may, with the customer's consent, apply any portion of the deposit and accrued interest against any of the customer's unpaid charges and return the unused balance of the deposit, with accrued interest, to the customer, or

(b) if the customer has provided a written guarantee or other deposit alternative, AGT will return the written guarantee or other deposit alternative to the customer.

12.10 When service is terminated or cancelled:

(a) AGT may apply any portion of the deposit and accrued interest against any of the customer's unpaid charges and will return the unused balance of the deposit, with accrued interest, to the customer, or

(b) AGT may use a written guarantee or other deposit alternative to arrange for payment of any portion of the customer's unpaid charges and upon such payment return any written guarantee or other deposit alternative to the customer.

13.0 AGT-Initiated Changes in Telephone Numbers or Service Arrangements

13.1 AGT has the right to change its telecommunications network at any time. Because a customer's telephone service is located within a particular area of the network, changes to the network might mean that a customer will be placed in a different "Local Service Area", "Exchange Area" or "Base Rate Area". This might result in rate changes to the customer or a change to the customer's telephone number. Telephone numbers may also be changed for technical reasons or if different telephone numbers are designated to AGT by another authority.

13.2 Customers do not have any property rights or any other rights to any telephone numbers designated for them whether or not the telephone number is published in a telephone directory.

13.3 AGT may change the telephone number designated for a customer if AGT has:

(a) reasonable grounds for changing it and gives the customer reasonable advance written notice stating the reason for and the anticipated date of the change, or

(b) in cases of emergency, given the customer verbal notice, which must be followed by a written explanation as soon as possible.

13.4 If AGT changes a customer's telephone number and the customer did not request the change, AGT must intercept all calls made to the customer's old number and advise the caller of the customer's new number. AGT will provide this service without charge until one of the following happens:

(a) the customer's service is cancelled or terminated, or

(b) updated telephone directories showing the new number are distributed.

13.5 AGT is not liable for any damages resulting from changes to telephone numbers, "Local Service Areas", "Exchange Areas" or "Base Rate Areas".

14.0 AGT's Right to Enter the Customer's Property and Premises

14.1 The customer agrees to allow AGT to enter the customer's property or premises at any reasonable hour in order to:

(a) install, inspect, repair or remove AGT facilities or equipment,

(b) inspect and perform necessary maintenance or other necessary function, in cases where the customer's facilities or equipment are causing disruptions to AGT's telecommunications network,

(c) disconnect facilities or equipment described in Item 6.3 where the customer has failed within a reasonable amount of time under the circumstances to change the facilities or equipment, or

(d) collect proceeds from pay telephones.

14.2 Before entering the customer's premises, AGT must obtain permission from the customer or other responsible person who is at the premises and who reasonably appears to have authority to permit entry.

14.3 Items 14.1 and 14.2 do not apply in the following circumstances. AGT may enter the customer's property or premises at any time, without permission from the customer:

(a) in cases of emergency,

(b) where entry is permitted by order of a court or administrative tribunal of competent jurisdiction, or

14.4 Upon request, AGT's agents or employees must show valid AGT identification before entering the customer's premises or at any time while on the customer's property.

15.0 Restrictions on AGT's Right to Suspend and Terminate Service

15.1 Suspension of service occurs when AGT prevents calls from being made or completed through the Customer Connection Point. Unless the reason for suspension has already been corrected, termination of service occurs automatically ten days after suspension when AGT removes the customer's account from the list of active accounts.

15.2 AGT may suspend a customer's service only if the customer:

(a) fails to pay a past due account for which the customer is responsible if it exceeds $50 or has been past due for more than two months,

(b) fails to provide or maintain a reasonable deposit or deposit alternative when required to do so according to Item 12,

(d) repeatedly fails to allow AGT to enter the customer's property or premises as required by Item 14.1,

(e) uses or allows others to use any AGT services in a way that prevents fair and proportionate use by others,

(f) uses or allows others to use any AGT services illegally or to make annoying or offensive calls,

(g) interferes with AGT facilities or equipment contrary to Item 7.4,

(h) charges any other person for the use of any AGT service contrary to Item 7.3,

(i) fails to pay charges immediately upon AGT's request where extreme circumstances exist (as set out in Item 11.4),

(j) refuses to allow AGT to make tests and inspections which AGT considers necessary to determine whether the customer is complying with these General Terms of Service or the AGT Tariff,

(k) fails to change facilities or equipment which do or may cause harm, danger or interference as required by Item 6.4,

(l) is a company which becomes bankrupt or has a receiver or receiver-manager appointed to govern the customer's affairs, or

(m) is or was a local service customer of ED TEL and the customer has failed to pay a past due account for long distance charges billed by ED TEL on AGT's behalf that exceeds $50 or has been past due for more than two months. In such case, suspension may not occur until ED TEL has notified AGT that it is satisfied that suspension is necessary to collect the outstanding charges and has requested AGT to proceed with the suspension.

15.3 AGT may not suspend a customer's service:

(a) because the customer fails to pay charges that are not authorized by the CRTC,

(b) because the customer fails to pay charges for a different class of service at different premises, or for service in the name of another customer, including failure to pay the account of another customer as a guarantor,

(c) if the customer agrees to and honours a reasonable deferred payment arrangement (where the reason for the proposed suspension is failure to pay), or

(d) if the customer disputes the proposed suspension, as long as the customer continues to pay undisputed amounts owing to AGT and AGT does not have reasonable grounds for believing that the purpose of the dispute is to evade or delay payment.

15.4 Within a reasonable amount of time before AGT suspends service, AGT must contact the customer and give the customer the following information:

(a) the reason for the proposed suspension,

(b) the amount owing (if any),

(d) notice that service will be terminated ten days after suspension and the customer will have to re-apply for service after that date,

(e) notice that a reasonable deferred payment arrangement can be entered into (where the reason for the proposed suspension is failure to pay),

(f) the amount of any charge to re-establish service,

(g) the telephone number of a company representative with whom any dispute may be discussed, and

(h) notice that disputes unresolved with this representative may be referred to a senior AGT manager.

If repeated efforts to contact the customer have failed, AGT must deliver the information to the customer's billing address by leaving it at that address or by sending it by facsimile or other electronic document transmission where possible.

15.5 In addition to the information which must be given to the customer under Item 15.4, AGT must, at least 24 hours prior to suspension, inform the customer, or another responsible person at the customer's premises, that suspension is imminent, except if:

(a) repeated efforts to contact the customer have failed,

(b) immediate action must be taken to protect AGT or other persons from harm resulting from the customer's facilities or equipment, or

(c) the suspension occurs because the customer fails to pay when required by AGT in Item 11.4 (when the customer's charges are significantly higher than normally expected).

15.6 Unless the customer consents or there are exceptional circumstances, AGT may suspend service only on business days between 8 a.m. and 4 p.m. If the business day precedes a non-business day suspension must not occur after 12 o'clock noon.

15.7 If AGT suspends or terminates the customer's service, the customer must still pay any amount owed to AGT.

15.8 AGT must re-establish service, as soon as possible, if:

(a) the reasons for suspension no longer exist, or

(b) a deferred payment arrangement has been agreed to.

15.9 If service is re-established within ten days of suspension the customer will automatically retain the same telephone number (unless within that time AGT notifies the customer that it needs to change the number as described in Item 13.3).

15.10 If AGT suspends or terminates a service, AGT may only charge the customer for that portion of the applicable monthly or other periodic charge which represents the period of time up to the suspension or termination date except when the minimum charge for the minimum contract period applies.

15.11 If the customer's service was suspended or terminated improperly or by mistake, AGT must re-establish the service during business hours on the next business day at the latest. If exceptional circumstances prevent AGT from re-establishing service on the next business day, AGT must re-establish service as soon as possible. In either case, AGT must not charge to re-establish service.

15.12 If service is terminated:

(a) AGT will charge the customer for the purchase of all equipment rented or leased from AGT which was used for the purposes of the terminated service. If the customer returns the equipment to AGT in satisfactory condition, the charge for the purchase of the equipment will be cancelled, and

(b) the customer will have to re-apply for service in order for service to be re-established and the customer will not necessarily be designated the same telephone number.

CUSTOMER'S RIGHTS

16.0 Telephone Directories

16.1 Each year, or at any other time that telephone directories are published, AGT will, without charge, deliver to each customer for each of the customer's telephone lines:

(a) one current white pages telephone directory and one current yellow pages telephone directory for the customer's Local Service Area, and

(b) one current white pages telephone directory for all areas to which the customer has Extended Flat Rate Calling ("EFRC") service.

16.2 If the customer asks, AGT will, without charge, give the customer as many additional current telephone directories for the customer's Local Service Area and EFRC areas as the customer requires, up to a maximum of one for each of the customer's telephones.

16.3 If any of the customer's telephone directories need to be replaced because of normal wear and tear, AGT will replace them without charge.

16.4 AGT may charge the customer for telephone directories:

(a) if the customer requires more telephone directories than specified in Items 16.1, 16.2 and 16.3, or

(b) if they are needed because the customer lost or intentionally destroyed telephone directories.

16.5 The contents of AGT's directories may not be published or reproduced in any form without AGT's written consent.

17.0 Telephone Directory Errors and Omissions

17.1 AGT's liability for any damages arising from errors or omissions in the customer's white or yellow page listings, whether or not the error or omission is with regard to a telephone number, is limited to making a refund or cancelling any charge associated with such listing for the period during which the error or omission occurred; however, where the error or omission was caused by AGT's negligence, AGT will be liable to compensate the customer up to the maximum amount calculated according to Item 24.2.

17.2 If telephone directories contain an error in the customer's telephone number, AGT must without charge, intercept all calls made to the incorrectly listed number and advise the caller of the customer's correct number until one of the following happens:

(a) the customer's service is cancelled or terminated, or

(b) updated telephone directories showing the new number are distributed.

18.0 Refunds in Cases of Service Problems

18.1 Where there are omissions, interruptions, delays, errors or defects in transmission, or failures or defects in AGT's facilities or equipment, AGT will, on request, refund that part of the customer's fixed monthly charge (or other periodic charge) for the service, which is proportionate to the length of time the problem existed.

18.2 AGT is not liable for any damages arising from omissions, interruptions, delays, errors or defects in transmission, or failures or defects in AGT facilities or equipment, unless they were caused by AGT's negligence, in which case AGT, in addition to the amount in Item 18.1, will be liable to compensate the customer an amount calculated according to Item 24.2.

19.0 Confidentiality of Customer Records

19.1 All information which AGT has about the customer is confidential except:

(a) the customer's name, address and telephone number listed in the AGT telephone directory, and

(b) the customer's name, address and telephone number available through directory assistance.

19.2 Customers may request that their name, address and telephone number:

(a) not be published, in which case they will not be listed in any AGT telephone directory and will not be available through directory assistance, or

(b) not be listed in any AGT telephone directory but still be made available through directory assistance.

AGT will charge customers for these services.

19.3 For the purposes of disclosure of confidential customer information, the customer is the person whose name appears on the telephone bill. If the customer is an incorporated company, the customer is the company or any person who in the reasonable judgement of AGT is an agent of the company authorized to receive and consent to release of confidential information.

19.4 AGT must not disclose confidential customer information to anyone other than:

(a) the customer,

(b) a person who, in the reasonable judgement of AGT, is seeking the information as an agent of the customer,

(c) another telephone company and then only if the information is required for the efficient and cost effective provision of telephone services, disclosure is made on a confidential basis, and the telephone company agrees to use the information only for that purpose,

(d) a company involved in supplying the customer with telephone directories, or telephone or telephone directory-related services, only if the information is required by that company for that purpose, disclosure is made on a confidential basis, and that company agrees to use the information only for that purpose,

(e) an agent used by AGT to evaluate the customer's creditworthiness or collect the customer's account, only if the information is required by that agent for that purpose, disclosure is made on a confidential basis, and that agent agrees to use the information only for that purpose, or

(f) a public authority or agent of a public authority, if in the reasonable judgement of AGT it appears that there is imminent danger to life or property which could be avoided or minimized by disclosure of the information.

19.5 Despite the restrictions in Item 19.4, AGT may disclose confidential customer information if:

(a) the customer consents in writing,

(b) AGT is ordered to disclose the information by a court or administrative tribunal of competent jurisdiction, or

19.6 AGT's liability for unauthorized disclosure of confidential customer information is not limited by Items 24.2 or 24.3.

19.7 The customer may request that AGT provide any information in AGT's possession regarding that customer's service, and AGT shall provide the information requested if:

(a) the customer has given AGT sufficient advance notice and detail of the information sought to allow AGT to comply with the request, and

(b) in a case where AGT would incur unusual expense to provide the information, the customer agrees to reimburse AGT for those costs.

19.8 Customers may ask AGT to block the recording or display of their name, address and telephone number on equipment used by other customers of AGT and other telecommunications customers.

20.0 Overbilled Charges and Charges That Should Not Have Been Billed

20.1 If a customer pays an account which was overbilled or included charges that should not have been billed, AGT must credit the customer's account for the amount which was incorrect regardless of when the customer became aware of, or requested a credit for, the incorrectly billed amount.

20.2 Prior to AGT crediting the customer's account under Item 20.1, either AGT must determine on the basis of its own records or the customer must provide AGT with records to demonstrate that the customer was overbilled or was billed for a charge that should not have been billed.

20.3 If the customer is credited with any amount as a result of a correction of an improperly billed charge, AGT must also credit the customer with interest on the amount of the correction. Interest will be calculated from the date of the customer's payment of the improperly billed charge to the date that the credit is applied to the customer's bill. The interest rate will be the interest rate payable on deposits that applied between the date of the payment and the date of the correction.

21.0 Dispute Procedure

21.1 The customer may dispute charges shown on the customer's bill or any other matter by following the dispute procedures set out in the introductory pages of the white pages telephone directory.

21.2 If the customer disputes any charges, the customer must still pay all undisputed charges.

21.3 If the customer is notified that telephone service will be suspended by AGT, the customer may dispute the suspension by:

(a) telephoning a company representative at the telephone number provided at the time the customer is notified of the suspension, or

(b) following the dispute procedures set out in the introductory pages of the white pages telephone directory.

21.4 AGT must promptly investigate all disputes and advise the customer of the results.

22.0 Cancellation of Service by the Customer

22.1 The customer may cancel a service at any time as long as reasonable advance notice is given to AGT. If service is cancelled after the minimum contract period, the customer will have to pay for service up to the cancellation date.

22.2 When a customer cancels a service at one location and begins service at another, AGT will, without charge to the customer, intercept all calls made to the customer's old telephone number and refer the caller to the customer's new telephone number anywhere in Canada for one month in the case of residential customers and one year in the case of business customers. Customers may request that the interception and reference of call service be provided for a longer period of time, in which case the tariffed rate for the service would apply.

22.3 When a service is cancelled, the customer must return to AGT all equipment rented or leased from AGT which was used by the customer for that service. If the customer fails to return the equipment to AGT in satisfactory condition, AGT will charge the customer for the purchase of the equipment.

22.4 When a customer cancels a service or a contract which has a minimum contract period greater than one month, the customer must pay the termination charges specified in the AGT Tariff or the contract, or where such charge is not specified, a termination charge of one half of the charges remaining for the remaining part of the minimum contract period. The cancellation date is effective when the customer pays the termination charge.

22.5 Despite Item 22.4 and Item 10.2 (minimum charge for minimum contract period), when cancellation of service occurs as a result of the circumstances listed below, applicable termination charges will not apply and the customer is responsible only for charges for service to the cancellation date:

(a) In the event of the death of the customer, the cancellation date is the date AGT is notified of the death.

(b) If the customer's premises are destroyed by causes beyond the customer's control, the cancellation date is the date AGT is notified of the destruction.

(c) If a change to the "Local Service Area", "Exchange Area" or "Base Rate Area" affects the customer's service, the cancellation date is the date AGT is notified that the customer wishes to cancel service.

(d) If the customer replaces any AGT service with another AGT service, the cancellation date is the date of the replacement, subject to the AGT Tariff and the terms of any contracts for the cancelled and replacement services.

(e) If the customer's service is taken over without lapse by a new customer at the same location, the cancellation date for the original customer is the date of take over.

In the above cases the minimum charge for the minimum contract period and applicable termination charges will not apply. Instead, the customer is responsible only for the charges for service to the cancellation date.

22.6 If a directory listing service is cancelled by a customer or the customer moves to another location and a specific charge applies for a directory listing, the cancellation date is effective on the date of the service cancellation or the date AGT is notified of the move. The customer is still responsible to pay the full amount of the specific charge for a minimum of one month or until reference of call service is no longer provided, unless the directory listing for which the specific charge applies has not been published in a directory.

22.7 When a customer has service and another person ("joint user") obtains an additional directory listing for the same service and a specific charge applies for that additional directory listing, the charge for the joint user's directory listing will not apply after the date the joint user moves to another location except that a minimum charge of one month will apply and the cancellation date is effective on the date AGT is notified of the move.

22.8 Despite Items 22.6 and 22.7, in the event of the death of the customer or any joint user or when either acquires separate telephone service, the minimum charge of one month for the directory listing will not apply. Instead, the cancellation date for directory listing service is effective from the date AGT is notified of the death or from the date of the commencement of the separate service. The customer is responsible only for the specific directory listing charge to the cancellation date.

LIABILITIES

23.0 Customer's Liability

23.1 If AGT facilities or equipment are presently located or are to be installed on property or premises occupied but not owned by the customer (for example, when the customer is renting or leasing the property or premises), the customer:

(a) warrants that he/she has the consent of the owner to place such facilities or equipment on the property or premises, and

(b) shall indemnify and save harmless AGT from any and all actions, causes of action, claims, demands or lawsuits arising from or consequent upon any lack of consent.

23.2 The customer shall indemnify and save harmless AGT from any and all actions, causes of action, claims, demands or lawsuits arising out of the circumstances listed in Item 24.4.

23.3 If any AGT facilities or equipment located on the customer's property or premises are damaged or destroyed other than through normal wear and tear or by persons or causes other than AGT itself, the customer shall pay to AGT the cost of restoration or replacement of AGT facilities and equipment which were damaged or destroyed.

23.4 If any AGT facilities or equipment are damaged or destroyed by or through the operation of any of the customer's facilities or equipment, the customer shall pay to AGT the cost of restoration or replacement of AGT facilities and equipment which were damaged or destroyed.

23.5 If the operation of any of the customer's facilities or equipment causes disruption in AGT service to any other person, the customer shall indemnify and save harmless AGT from any and all actions, causes of action, claims, demands or lawsuits arising out of the disruption of service.

24.0 Limitation of AGT's Liability

24.1 Despite any limitations of liability set out in these General Terms of Service, AGT's liability is not limited by these General Terms of Service in cases of deliberate fault or gross negligence on the part of AGT or in cases of breach of contract where the breach results from gross negligence of AGT.

24.2 Except in cases where negligence on the part of AGT results in physical injury, death or damage to the customer's property or premises, AGT's liability for negligence, including negligence related to the interception and reference of calls, emergency service from pay telephones and breach of contract, is limited to the greater of $20 and three times the amount refunded or cancelled in accordance with Items 17.1 and 18.1, as applicable.

24.3 AGT is not liable for any damages arising out of continuation of the customer's listing in a telephone directory after termination or cancellation of the customer's service.

24.4 AGT is not liable:

(a) for libel, slander, defamation or the infringement of copyright arising from material or messages transmitted over AGT's telecommunications network from the customer's property or premises or recorded by the customer's equipment or AGT's equipment,

(b) for the infringement of patents arising from the combining or using of the customer's facilities or equipment with AGT equipment or AGT's telecommunications network,

(c) for damages arising out of the act, default, neglect or omission of the customer in the use or operation of equipment provided by AGT, or

(d) for damages arising out of the transmission of material or messages over AGT's telecommunications network on behalf of the customer, which is in any way unlawful.

24.5 When facilities of other companies or telecommunications systems are used in establishing connections to or from customer-controlled facilities and equipment, AGT is not liable for any act, omission or negligence of the other companies or telecommunications systems.

24.6 AGT is not liable for any damages arising out of any act or omission of AGT permitted pursuant to Item 14.3 or Item 19.5, provided that AGT acted in good faith in accepting the court order or other legal power.

24.7 AGT is not liable for any damages or injuries which may occur through lightning or other currents being carried over or through AGT facilities or equipment.

24.8 AGT's facilities and equipment are designed for and intended to be used for a variety of different services. If a customer uses AGT's facilities and equipment for purposes other than those for which the system is designed, or for services to which the customer has not subscribed, AGT is not liable for errors, omissions, interruptions, delays or defects in the transmission or for the quality of the transmission of those services. AGT is not responsible to grant any refund to the customer for any defects in those cases.

24.9 AGT does not guarantee that a specific portion of AGT's telecommunications network will remain compatible with any of the customer's facilities or equipment. AGT is not liable if it changes a portion of its telecommunications network or any of its facilities or equipment.

OTHER

25.0 Location of the Customer Connection Point

25.1 For residence customers, the Customer Connection Point will generally be at a single location inside the customer's premises, except where service is provided to a multi-level building or in cases specified in Item 25.3.

25.2 For a multi-level building, the Customer Connection Point will be at a single location where AGT's facilities enter the building.

25.3 If business service or both residence and business service is provided to a number of customers in one building or a number of buildings on the same continuous property, the Customer Connection Point will be at a single location where AGT's facilities enter the building or at a single location on the property.

25.4 If a single Customer Connection Point is not feasible to either AGT or the customer, a special arrangement will be made and the customer will be required to pay AGT the extra costs to provide the special arrangement.

APPENDIX 3
NBTEL

1.0 General

1.1 Except as otherwise specified, these Terms of Service apply with regard to services for which the Canadian Radio-television and Telecommunications Commission has approved a tariff.

1.2 These Terms do not limit NBTel's liability in cases of deliberate fault or gross negligence, or of breach of contract where the breach results from the gross negligence of NBTel.

1.3 Tariffed services offered by NBTel are subject to the terms and conditions contained in:

(a) these Terms;

(b) applicable provisions of NBTel's tariffs; and

All of the above bind both NBTel and its customers.

2.0 Effective Date of Change

3.0 Obligation to Provide Service

3.1 NBTel is not required to provide service to an applicant where:

(a) NBTel would have to incur unusual expenses which the applicant will not pay; for example, for securing rights of way or for special construction;

(b) the applicant owes amounts to NBTel that are past due other than as a guarantor; or

3.2 Application for service or for additional service and/or equipment in connection with service already established may be made orally or shall be in writing if NBTel so requires in order to establish the identity of the applicant or customer in circumstances where NBTel has reasonable grounds for believing that the applicant or customer intends to defraud NBTel or to evade payment.

3.3 Where NBTel does not provide service on application, it must provide the applicant with a written explanation upon request.

4.0 NBTel Facilities

4.1 Except where otherwise stipulated in its tariffs or by special agreement, NBTel must furnish and install all facilities required to provide service. The company may charge for unusual expenses associated with meeting the needs of customers with special requests, such as performing maintenance and repair work outside of regular working hours.

4.2 NBTel shall normally provide the electrical energy necessary for the furnishing of service, except that the customer shall arrange and pay for a local supply of suitable commercial power, with outlets, when required for the operation of equipment required to furnish the service.

4.3 Subject to General Tariff Item 30.1 (set loss charge), upon termination of service, the customer must return NBTel equipment.

4.4 NBTel must bear the expense of maintenance and repairs required due to normal wear and tear to its facilities, except that NBTel may charge for the additional expense incurred when the applicant or customer requires maintenance and repair work to be performed outside of regular working hours. This section does not apply where otherwise stipulated in NBTel's tariffs or by special agreement.

4.5 A customer who has deliberately, or by virtue of a lack of reasonable care, caused loss or damage to NBTel's facilities, may be charged the cost of restoration or replacement. In all cases, customers are liable for damage caused to NBTel facilities by customer-provided facilities.

5.0 NBTel's Right to Enter Premises

5.1 NBTel's agents and employees may enter premises on which service is or is to be provided, during the company's normal working hours if the work is completed at the customer's request or in the event of an emergency or potential harm to the network, at any time subject to the provisions in Article 5.2 and 5.3, to install, inspect, repair and remove its facilities, to inspect and perform necessary maintenance in cases of network-affecting disruptions involving customer-provided facilities, and to collect proceeds from coin telephones.

5.2 Prior to entering premises, NBTel must obtain permission from the applicant, customer or other responsible person.

5.3 Entry is not subject to 5.1 and 5.2 in cases of emergency or where entry is pursuant to a court order.

5.4 Upon request, NBTel's agent or employee must show valid NBTel identification prior to entering premises.

6.0 Basic Service

6.1 NBTel provides single-party, touch tone service as its basic service platform. Service is subject to the availability of suitable facilities. Four-party service and rotary dial service are available only to those customers currently subscribing to them at their present location.

6.2 Customers who wish to change to a lower grade of service that is available may do so without charge.

7.0 Deposits and Alternatives

7.1 Except as otherwise stipulated in its tariffs, NBTel cannot require deposits from an applicant or customer at any time unless the applicant or customer:

(a) has no credit history with NBTel and will not provide satisfactory credit information;

(b) has an unsatisfactory credit rating with NBTel due to payment practices in the previous two years regarding NBTel services; or

7.2 NBTel must inform the applicant or customer of the specific reason for requiring a deposit, and of the possibility of providing an alternative to a deposit, such as arranging for third party payment, a bank letter of credit or a written guarantee from a third person whose credit is established to the satisfaction of NBTel.

7.3 An applicant or customer may provide an alternative to a deposit provided it is reasonable in the circumstances.

7.4 The total amount of all deposits and alternatives provided by or for an applicant or customer may not at any time exceed three months' charges for all services, including anticipated long distance charges. However, where an applicant or customer clearly presents an abnormal risk of loss, NBTel may require a deposit or alternative not to exceed six months' charges for all services, including anticipated long distance charges.

7.5 Deposits earn interest in accordance with the applicable provisions of NBTel's tariffs.

7.6 Whenever NBTel holds a deposit it must indicate the following on that customer's monthly account:

(a) that a deposit is being held by NBTel in connection with the customer's account; and

(b) a telephone number of a NBTel representative to whom any enquiries regarding the deposit may be directed.

At least once per year, NBTel must also indicate on that customer's account the total amount of deposits held as well as the total interest accrued on the deposits.

7.7 NBTel must review the continued appropriateness of deposits and alternative arrangements at six month intervals. When service is terminated or the conditions which originally justified them are no longer present, NBTel must promptly refund the deposit, with interest, or return the guarantee or other written undertaking, retaining only any amount then owed to it by the customer.

8.0 Restrictions on Use of Service

8.1 Service may be used by the customer and all persons having the customer's permission to use it. In the case of business telephone service, joint use within the meaning of NBTel's tariffs is permitted only upon approval by NBTel in accordance with the applicable provisions of its tariffs.

8.2 Customers are prohibited from using NBTel's services or permitting them to be used for a purpose or in a manner that is contrary to law or for the purpose of making annoying or offensive calls.

8.3 Customers are prohibited from using NBTel's services or permitting them to be used so as to prevent a fair and proportionate use by others. For this purpose, NBTel may limit use of its services as necessary. In the case of any party line customer who unduly interferes with the use of any other service on the same line, NBTel may require the customer to obtain a higher grade of service, where facilities are available.

8.4 NBTel's facilities must not be re-arranged, disconnected, removed, repaired or otherwise interfered with except in cases of emergency, where specified in NBTel's tariffs or by special agreement. Terminal equipment provided by the customer may be connected with NBTel's facilities, pursuant to the provisions of the General Tariff or by special agreement.

8.5 No payment may be exacted, directly or indirectly from any person or by any party other than NBTel for the use of any of NBTel's services, except where otherwise stipulated by special agreement, as in the case of hotel, motel and hospital customers, or in NBTel's General Tariff.

9.0 Customer Liability for Calls

9.1 The customer is liable to NBTel for charges for all long distance calls originating at the customer's telephone regardless of who may originate such calls, and for all calls received at the customer's telephone, the charges for which are accepted by any person receiving such calls, regardless of who may accept such charges.

9.2 NBTel may, if it so elects, collect all or part of the charges referred to in Article 9.1 from the person placing the call or from any person who may otherwise be responsible for the charges incurred.

10.0 Dispute Procedure

11.0 Confidentiality of Customer Records

11.1 Unless a customer consents in writing or disclosure is pursuant to a legal power, all information kept by NBTel regarding the customer, other than the customer's name, address and listed telephone number, are confidential and may not be disclosed by NBTel to anyone other than:

(a) the customer;

(b) a person who, in the reasonable judgement of NBTel, is seeking the information as an agent of the customer;

(c) a company involved in supplying the customer with telephone or telephone directory-related services, provided the information is required for that purpose and disclosure is made on a confidential basis with the information to be used only for that purpose;

(d) an agent retained by NBTel in the collection of the customer's account, provided the information is required for, and is to be used only for that purpose; or

(e) another telephone company, provided the information is required for the efficient and cost-effective provision of telephone service and disclosure is made on a confidential basis with the information to be used only for that purpose.

11.2 NBTel's liability for disclosure of information contrary to Article 11.1 is not limited by Article 16.1.

11.3 Upon request, customers are permitted to inspect any NBTel records regarding their service.

12.0 Directories

12.2 NBTel must provide, without charge, replacement directories required as a result of reasonable wear and tear.

12.3 The contents of NBTel's directories may not be published or reproduced in any form without NBTel's written consent.

13.0 Directory Errors and Omissions

13.1 In the case of errors or omissions in directory white and yellow pages standard listings, whether or not the error or omission is with regard to a telephone number, NBTel's liability is limited to making a refund or cancelling any charge associated with such listings for the period during which the error or omission occurred. No liability shall be attached to NBTel by reason of continuation of the customer's listing in a directory after the customer's service has been terminated. However, where the error or omission is occasioned by NBTel's negligence, NBTel is also liable for the amount calculated in accordance with Article 16.1.

13.2 In the case of errors in telephone numbers in directory white and yellow pages listings, unless central office facilities are unavailable, NBTel must provide reference of call service, free of charge, until termination of the customer's service or distribution of updated directories for that district in which the number or listing is correct.

14.0 NBTel-Initiated Changes in Telephone Numbers and Service Arrangements

14.1 Customers shall have no property rights in the telephone numbers assigned to them, nor any right to continuation of service through any particular central office, and NBTel may change either or both whenever the company has reasonable grounds for doing so and has given reasonable advance written notice to the customer, stating the reason and anticipated date of change. In cases of emergency, oral notice with subsequent written confirmation is sufficient.

14.2 NBTel may, at any time, change the boundaries of an Exchange Area and upon the Commission's approval, may change the boundaries of a Base Rate Area, Locality Rate Area or Island Base Rate Area. In addition, subject to the Commission's approval, NBTel may change an Exchange Area's Local Calling Area, subject to the conditions set out in General Tariff Item 42.1.

14.3 Whenever NBTel changes a customer's telephone number on its own initiative, it must, unless there are insufficient central office terminations available, provide reference of call service without charge until termination of the customer's service or distribution of updated directories for that district showing the new number, whichever occurs first.

15.0 Refunds in Cases of Service Problems

15.1 NBTel does not guarantee uninterrupted working of its services or equipment. The company shall not be liable to any customer, user or other person for damages resulting from omissions, interruptions, delays, errors or defects in transmission, or failures or defects in NBTel's facilities. However, in any such case, NBTel shall, on request, make a refund of charges proportionate to the length of time the problem existed. With regard to Long Distance Service and Short Period Private Line Service, the refund shall be computed at the time NBTel is advised of the problem. No request is necessary where a problem in primary exchange service lasts twenty-four hours or more from the time NBTel is advised of the problem. However, where the problem is occasioned by NBTel's negligence, NBTel is also liable for the amount calculated in accordance with Article 16.1.

16.0 Limitation of NBTel Liability

16.1 Except with regard to physical injuries, death or damage to customer premises or other property occasioned by its negligence, NBTel's liability for negligence, including negligence with regard to intercept, reference of call service and emergency service from coin telephones, and also for breach of contract where the breach results from the negligence of NBTel, is limited to the greater of $20 and three times the amounts refunded or cancelled in accordance with Articles 13.1 and 15.1, as applicable.

16.2 NBTel is not liable for:

(a) any act or omission of a telecommunications carrier whose facilities are used in establishing connections to points which NBTel does not directly serve;

(b) defamation or copyright infringement arising from material transmitted or received over NBTel's facilities;

17.0 Payment Time Limits

17.1 Telephone service shall be billed in arrears and all amounts owing shall be due on the bill date shown on the bill, except where otherwise provided in the General Tariff. Failure to receive a bill showing the amount owing by the customer to NBTel shall not relieve the customer from the responsibility of making prompt payment to NBTel.

17.2 Subject to Articles 17.3 and 17.4, charges cannot be considered past due until the time prescribed in General Tariff Item xx, Late Payment Charge, has expired.

17.3 In exceptional circumstances, for example when a customer has incurred a significant amount of long distance charges and presents an abnormal risk of loss to NBTel, prior to the normal billing date NBTel may request payment from the customer on an interim basis for the non-recurring charges that have accrued, providing the customer with details regarding the services and charges in question. In such cases, subject to Article 17.4, the charges can be considered past due three days after they are incurred or three days after NBTel demands payment, whichever occurs later.

17.4 No charge disputed by a customer can be considered past due unless NBTel has reasonable grounds for believing that the purpose of the dispute is to evade or delay payment.

17.5 NBTel may request immediate payment in extreme situations, provided that a notice has been issued pursuant to Article 17.3 and the abnormal risk of loss has substantially increased since that notice was given or NBTel has reasonable grounds for believing that the customer intends to defraud NBTel.

18.0 Liability for Unbilled and Underbilled Charges

18.1 Unless there has been customer deception with regard to a charge, customers are not responsible for paying a previously unbilled or underbilled charge except where:

(a) in the case of a recurring charge or a charge for an international long distance message, it is correctly billed within a period of one year from the date it was incurred; or

(b) in the case of a non-recurring charge other than for an international long distance message, it is correctly billed within a period of 90 days from the date it was incurred.

18.2 In the circumstances described in 18.1, unless there has been customer deception, NBTel cannot charge the customer interest on the amount of the correction. If the customer is unable to promptly pay the full amount owing, NBTel must attempt to negotiate a reasonable deferred payment agreement.

19.0 Liability for Charges That Should Not Have Been Billed and Those That Were Overbilled

19.1 In the case of a recurring charge that should not have been billed or that was overbilled, a customer must be credited with the excess back to the date of the error or whatever is the furthest customer or company record which substantiates the date of the error, subject to applicable limitation periods provided by law. However, a customer who does not dispute a bill within one year of the date of a detailed statement which shows that charge correctly, loses the right to have the excess credited for the period prior to that statement.

19.2 Non-recurring charges that should not have been billed or that were overbilled must be credited, provided that the customer disputes them within 90 days of the date of the bill.

20.0 Minimum Contract Period and Cancellation Before Service Commencement

20.1 NBTel requires a minimum contract period which stipulates the minimum period of time for which NBTel will furnish the service and equipment applied for, and for which NBTel's charges must be paid, whether or not the service is used by the customer for the whole of such period. The standard length of the minimum contract period is one month, commencing on the date service is established, and applies to all services except where otherwise provided in the General Tariff. However, NBTel may fix the minimum contract period longer than one month where the following conditions exist:

(a) unusual expense is necessary for the provision of the service; or

(b) special assemblies of equipment are installed.

20.2 A customer who cancels or delays a request for service before installation work has started cannot be charged by NBTel. Installation work is considered to have started when the customer has advised NBTel to proceed, and NBTel has incurred any related expense. A customer who cancels or delays a request for service after installation work has started, but before service has started, will be charged the lesser of the full charge for the entire minimum contract period plus the installation charge and the estimated costs incurred in installation less estimated net salvage. The estimated installation costs include the cost of unsalvaged equipment and materials specifically provided or used plus the cost of installing, including engineering, supply expense, labour and supervision, and any other disbursements resulting from the installation and removal work.

21.0 Customer-Initiated Termination of Service

21.1 Service may be terminated after the expiration of the minimum contract period upon reasonable advance notice to NBTel. The customer shall pay all charges due for service which has been furnished.

(a) in the event of the death of the customer during the minimum contract period, the termination is effective from the date NBTel is notified of the death;

(c) in the case of chargeable directory listings, and in the case of directory listings with regard to joint use of service, the charges due to the end of the effective period of such a directory shall be paid. However, when the customer subscribes to his or her own Primary Service, or in the event of the death of the listed party, the charges shall be paid only to the date the customer subscribes to his or her own Primary Service or the date NBTel is notified of the death;

(d) where a change to the boundaries of an Exchange Area or Local Calling Area affects the customer's service, the customer may terminate the service upon reasonable notice of termination to NBTel and termination becomes effective from the date NBTel is so notified;

(e) in the case of a customer's service being taken over without lapse by a new customer at the same location or being superseded by another service of the same customer at the same or different location, termination becomes effective from the date of change and charges due for the balance of the entire minimum contract period shall be paid by the original customer for any of the original service and equipment which is discontinued at the time of the change, subject to the terms of NBTel's General Tariff and, notwithstanding Article 1.3(c), the terms of the contract for the service in question;

(f) where the circumstances specified in Article 21.2(a) through (e) do not apply, the minimum contract period is greater than one month at the same location, and the customer has given NBTel advance notice, the termination is effective when the customer pays the termination charge specified in the contract for the service in question or, where such charge is not specified, a termination charge of one-half of the charges remaining for the unexpired portion of the minimum contract period; and

(g) in the case of chargeable directory listings, and in the case of directory listings with regard to joint use of service, where the listing has appeared in a directory and the customer's service is terminated or the listed party or joint user moves to another location, and the customer has given NBTel advance notice, the termination is effective on the date of that service termination or move, subject to a minimum charge of one month, and as of such time as no reference of call service is provided from the old to the new number.

22.0 NBTel-Initiated Suspension or Termination of Service

22.1 NBTel may suspend a customer's service or terminate a customer's service, whether or not NBTel has previously suspended the service, only where the customer:

(a) fails to pay an account of the customer that is past due, provided it exceeds fifty dollars or has been past due for more than two months;

(b) fails to provide or maintain a reasonable deposit or alternative, as required in Article 7.4, when required to do so pursuant to these Terms;

(d) repeatedly fails to provide NBTel with reasonable entry and access in conformity with 5.1 and 5.2;

(e) uses or permits others to use any of NBTel's services or equipment so as to prevent fair and proportionate use by others, as set out in Article 8.3;

(f) uses or permits others to use any of NBTel's services for a purpose or in a manner that is contrary to law or for the purpose of making annoying or offensive calls;

(g) contravenes Articles 8.4 or 8.5; or

(h) fails to provide payment when requested by NBTel pursuant to Article 17.5 or where required pursuant to General Tariff Item xx, Late Payment Charge.

22.2 NBTel may not suspend or terminate service in the following circumstances:

(a) failure to pay non-tariffed charges;

(d) where there is a dispute regarding the basis of the proposed suspension or termination, provided payment is being made for undisputed outstanding amounts and NBTel does not have reasonable grounds for believing that the purpose of that dispute is to evade or delay payment.

22.3 Prior to suspension or termination, NBTel must provide the customer with reasonable advance notice, stating:

(a) the reason for the proposed suspension or termination and the amount owing (if any);

(b) the scheduled suspension or termination date;

(c) that a reasonable deferred payment agreement can be entered into (where the reason for suspension or termination is failure to pay);

(d) the reconnection charge;

(e) the telephone number of a NBTel representative with whom any dispute may be discussed; and

(f) that disputes unresolved with this representative may be referred to a senior NBTel manager.

Where repeated efforts to contact the customer have failed, NBTel must deliver such advance notice to the billing address.

22.4 In addition to the notice required by 22.3, NBTel must, at least twenty-four hours prior to suspension or termination, advise the customer or another responsible person that suspension or termination is imminent, except where:

(a) repeated efforts to so advise have failed;

(b) immediate action must be taken to protect NBTel from network harm resulting from customer-provided equipment; or

(c) the suspension or termination occurs by virtue of a failure to provide payment when requested by NBTel pursuant to 17.5.

22.6 Suspension or termination by NBTel shall not affect the customer's obligation to pay any amount owed to NBTel. For suspended services, unless suspension occurs during the minimum contract period, NBTel shall make a daily pro rata allowance based on the monthly charge for the services suspended.

22.7 Subsequent to the suspension of the customer's service, Standard Service Charges will apply upon reconnection of such service.

22.8 Subsequent to removal of NBTel's equipment from the customer's premises due to termination, service will be reestablished only upon the basis of a new application, whereupon the Standard Service Charges will apply.

22.9 NBTel must restore service, without undue delay, where the grounds for suspension or termination no longer exist or a payment or deferred payment agreement has been negotiated.

22.10 Where it becomes apparent that suspension or termination occurred in error or was otherwise improper, NBTel must restore service during business hours on the next working day, at the latest, unless exceptional circumstances do not permit this, and no reconnection charges shall be levied.

ADDITIONS TO GENERAL TARIFF OF NBTEL

1.0 Late Payment Charge

1.1 NBTel has the right and privilege to charge a surcharge on all accounts above $12.80 overdue in excess of thirty days from the billing date calculated at a compound rate of 1.25% per month (xx% per year) or fifty cents per account per month, whichever is greater.

1.2 When a customer pays any bill rendered by the company with a cheque which is subsequently returned by a financial institution due to non-sufficient funds, that customer will be subject to a NSF cheque charge of $10.00.

1.3 All charges incurred by the customer or for which the customer is responsible are payable at the company's business offices or at agencies duly authorized to receive such payments.

NOTE: The above articles and items replace all of NBTel's current rules, except rules 18(d), 47 through 53 and 56 through 63 which may be included in a separate section following the Terms of Service.

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Telecom Decision
CRTC 95-6