ARCHIVED -  Telecom Order CRTC 96-181

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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 -
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

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