ARCHIVED -  Telecom Public Notice CRTC 96-19

Telecom Public Notice

Ottawa, 23 May 1996

Telecom Public Notice CRTC 96-19

SCOPE OF IX CONTRIBUTION PAYING SERVICES

 In the proceeding leading to Review of Regulatory Framework, Telecom Decision CRTC 94-19, 16 September 1994 (Decision 94-19), several parties proposed that the contribution charge should be required to cover all services and all service providers that make use of the Public Switched Telephone Network. At that time, proposals for broadening the base of contribution paying services included services such as data, cellular, paging, enhanced, interconnected private line, cable and public cordless telephone services.

 In Decision 94-19, the Commission stated that, on a preliminary basis, it considered the application of contribution charges to a broader base of interexchange services to be desirable. The Commission stated that it intended to initiate a proceeding to examine issues associated with a broadening of the base of contribution paying services but did not expect to issue a public notice on this matter prior to 1996.

 In Decision 94-19, the Commission also eliminated the Direct Access Line (DAL) loading factor beginning in 1995 in order to reduce the discount available to competitors resulting from the combined effect of the DAL surcharge and the DAL loading factor. Notwithstanding that change to the method of calculating contribution, the Commission also expressed its continuing concern over the possibility of DALs being used for contribution avoidance.

 In Implementation of Regulatory Framework - Split Rate Base, 1995 Contribution Charges, Broadband Initiatives and Related Matters, Telecom Public Notice CRTC 94-52, 1 November 1994, and in 1996 Contribution Charges, Telecom Public Notice CRTC 95-52, 8 December 1995, the Commission deemed examination of the treatment of DALs to be outside the scope of the annual contribution proceeding.

 Accordingly, the Commission hereby initiates a proceeding to examine the issues relating to a broadening of the base of inter-exchange contribution paying services and invites comments on these issues, including the appropriateness of the existing treatment of DALs.

 The Commission notes that in Price Cap Regulation and Related Issues, Telecom Public Notice CRTC 96-8, 12 March 1996, it invited comments on the issue of who should share in absorbing any residual access/local shortfall that exists after the implementation of price cap regulation. For greater clarity, the Commission further notes that in that proceeding, it intends to consider the extent to which local subscribers (through further local service rates), and/or shareholders (through earnings) and/or interexchange service providers (through the contribution charge) should share in absorbing any residual access/local shortfall that exists after price cap regulation is implemented.

 Procedure

1 . Persons wishing to participate in this proceeding must notify the Commission of their intention to do so by writing to Mr. Allan J. Darling, Secretary General, CRTC, Ottawa, Ontario, K1A 0N2, fax: 819-953-0795, by 25 June 1996. Parties are to indicate in the notice their Internet email address, where available. If parties do not have access to Internet, they are to indicate in their notice whether they wish to receive disk versions of hard copy filings. The Commission will issue a complete list of parties and their mailing addresses (including Internet email addresses, if available), also identifying those parties who wish to receive disk versions.

2 . By 22 July 1996, parties are to file, and serve on all other parties, submissions regarding the issues relating to broadening the scope of contribution paying services including comments on the appropriateness of the existing treatment of DALs.

3 . Parties may address interrogatories to any party who files submissions pursuant to paragraph 2 above, filing a copy with the Commission, by 12 August 1996.

4 . Responses to interrogatories addressed pursuant to paragraph 3 above, are to be filed and served on all parties by 10 September 1996.

5 . All parties may file comments, serving copies on all other parties, by 10 October 1996.

6 . All parties may file reply comments, serving copies on all parties that filed comments pursuant to paragraph 5 above, by 25 October 1996.

7 . Where a document is to be filed or served by a specific date, the document must be actually received, not merely mailed, by that date.

8 . In addition to hard copy filings, parties are encouraged to file with the Commission electronic versions of their submissions in accordance with the Commission's Interim Telecom Guidelines for the Handling of Machine-Readable Files, dated 30 November 1995. The Commission's Internet email address for electronically filed documents is public.telecom@crtc.x400.gc.ca. Electronically filed documents can be accessed at the Commission's Internet site at http://www.crtc.gc.ca.

 Allan J. Darling
 Secretary General

AVI96-19_0