Search

ARCHIVED -  Telecom Order CRTC 96-181

This page has been archived on the Web

Information identified as archived on the Web is for reference, research or recordkeeping purposes. Archived Decisions, Notices and Orders (DNOs) remain in effect except to the extent they are amended or reversed by the Commission, a court, or the government. The text of archived information has not been altered or updated after the date of archiving. Changes to DNOs are published as “dashes” to the original DNO number. Web pages that are archived on the Web are not subject to the Government of Canada Web Standards. As per the Communications Policy of the Government of Canada, you can request alternate formats by contacting us.

Archived

This page has been archived on the Web.

Telecom Order

Ottawa, 26 February 1996
Telecom Order CRTC 96-181
IN THE MATTER OF of a dispute between Québec-Téléphone and Sogetel inc. (Sogetel) regarding revenue settlement for toll traffic originating and/or terminating in Sogetel's territory and carried on Québec-Telephone's network.
 WHEREAS the two companies filed their positions on this matter on 4 December 1995 and filed replies on 11 December 1995;
 WHEREAS following completion of the written record and with the concurrence of Québec-Téléphone and Sogetel, the Commission's staff provided the two parties with an informal resolution of the issue;
 WHEREAS, since the proposed resolution was not acceptable to Québec-Téléphone, by letter dated 11 January 1996 it asked for a formal Commission decision in this matter;
 WHEREAS the dispute pertains to the applicability of the interim Carrier Access Tariff (CAT) as established by the Commission in Telecom Order CRTC 95-558 dated 11 May 1995 (Order 95-558) and the appropriateness of certain expenses in the calculation of the revenue settlement;
 WHEREAS, for the years 1991 to 1993, Québec-Téléphone and Sogetel settled revenues based on a sharing mechanism established by the Régie des télécommunications du Québec (the Régie) in its Decision R.T. 92-038;
 WHEREAS Decision R.T. 92-038 encouraged the two companies to negotiate any future settlements;
 WHEREAS the two companies negotiatied for 1994 using the same sharing mechanism and continued to use that negotiated mechanism until 1 June 1995;
 WHEREAS Order 95-558 established an interim competitive regime for all the independent companies in Québec, effective 1 June 1995, which included a CAT for settling revenues;
 WHEREAS Québec-Téléphone is of the view that Order 95-558 does not apply to the interexchange of traffic between two independent companies in Quebec;
 WHEREAS Sogetel informed the Commission on 31 October 1994 that it was expanding its territory by purchasing a neighbouring independent company, Téléphone Daaquam Inc. (Téléphone Daaquam);
WHEREAS it is the reasonableness of these acquisition costs and costs associated with modernizing Sogetel's network that are being disputed by Québec-Téléphone as part of the settlement calculations;
WHEREAS the Commission is of the view that Order 95-558 does apply to Québec-Téléphone when it carries the long distance traffic of Sogetel subscribers;
WHEREAS, according to Sogetel, the end result with respect to its financial bottom line is essentially the same using either the CAT or the revenue settlement mechanism established by the Régie;
WHEREAS, for 1995, there was negligible toll competition in Sogetel's territory; and
WHEREAS the CAT is interim in Sogetel's territory and it would be more practical to continue to use the Régie's settlement plan for all of 1995 -
IT IS HEREBY ORDERED THAT:
1. F or 1995, the two companies are to share revenues based on the practice established by the Régie.
2. T he two companies are to file for approval, within thirty days, a negotiated revenue settlement agreement for 1995 based on the Régie's formula, as modified by paragraph 3, below.
3. T he expenditures associated with the acquisition of Téléphone Daaquam and modernization of Sogetel's network are to be allowed for purposes of the 1995 revenue settlement.
4. C ommencing 1 January 1996, Québec-Téléphone is to pay the CAT rate pursuant to Order 95-558 for traffic originating and terminating in Sogetel's territory.
Allan J. Darling
Secretary General

Date modified: