ARCHIVED -  Telecom Order CRTC 97-1033

Telecom Order

Ottawa, 24 July 1997

Telecom Order CRTC 97-1033

The Commission received a letter dated 14 May 1997 from Westel Telecommunications Ltd. (Westel) submitting an application and affidavit (also dated 14 May 1997) for exemption from contribution charges on certain interconnecting circuits used solely to carry data traffic. Westel stated that it provides data communications services to Canadian businesses using wide area networks based upon high speed private line and frame relay technologies.

File No.: 97-8626-W1-01

1. Westel stated that initially BC TEL recognized that the interconnecting circuits used by Westel in its business qualify for exemption as data-only circuits and did not charge Westel contribution. Westel stated that however, in April 1997, BC TEL notified Westel that unless it obtained and produced a formal contribution exemption order from the Commission, it would start assessing contribution payments on the circuits.

2. Westel stated that consistent with the tests established by the Commission in Competition in the Provision of Public Long Distance Voice Telephone Services and Related Resale and Sharing Issues, Telecom Decision CRTC 92-12, 12 June 1992, and in Applications for Contribution Exemptions, Telecom Decision CRTC 93-2, 1 April 1993, the circuits in question are dedicated to a single customer and are used purely for data traffic. Westel stated that BC TEL can attest to this fact and can provide carrier verification. Accordingly, Westel stated that it is applying to the Commission and requesting approval effective the date of installation of the circuits in question.

3. By letter dated 3 June 1997, BC TEL stated that the interconnecting circuits in question terminate at a Westel point of presence in Kelowna, B.C. and are associated with two seven-digit access numbers. BC TEL stated that it dialed the access numbers associated with the circuits in question and that for the first number (which is associated with the majority of the circuits), it received a modem tone. BC TEL stated that it was not able to connect to the second number as it was continually busy. BC TEL stated that apart from the foregoing, it cannot verify that the circuits in question are configured to prevent voice usage. Furthermore, BC TEL stated that it is not in a position to determine if the service provided by Westel is dedicated to an individual user. BC TEL stated that according to its information, there does not appear to be any other BC TEL interconnecting circuits (either line-side or trunk-side) at this point of presence. BC TEL stated that therefore, if there is only a data service provided at this point of presence, Westel's affidavit would currently satisfy the evidentiary requirements for an exemption from contribution.

4. However, BC TEL stated that should interconnected voice services also be offered at Westel's point of presence in Kelowna, an application for exemption from contribution would have to be supported by a technical audit and engineer's affidavit to verify that the voice and data services are carried on separate networks or that the circuits providing the data service are technically configured to prevent voice usage.

5. Given the foregoing, BC TEL submitted that Westel's application be given interim approval subject to either attestation from Westel that only data services are being provided at this particular point of presence in Kelowna or, if interconnected voice services are also provided at this point of presence, a technical audit and engineer's affidavit with respect to the data configuration. BC TEL noted that, pursuant to Telecom Order CRTC 97-590 dated 1 May 1997 (Order 97-590) concerning the scope of IX contribution paying services, the contribution regime with respect to data services will be modified and that any exemption granted to Westel for data services under this current application may no longer be valid after 1 January 1998.

6. By letter dated 11 June 1997, Westel affirmed that data service is the only type of service offered at this point of presence in Kelowna. Therefore, Westel submitted that it has met the evidentiary requirements for an exemption from contribution.

7. The Commission notes that an affidavit meets the evidentiary requirements to support an application for a dedicated data configuration. However, the Commission considers that Westel's affidavit is deficient since it did not include the affirmation that Westel offers only data service at Kelowna.

8. With respect to the effective date, the Commission's practice, according to Effective Date of Contribution Exemptions, Telecom Public Notice CRTC 95-26, 12 June 1995, is that contribution exemptions will generally be granted effective the later of the date of the application or the date of installation, absent special circumstances.

9. The Commission notes that in this case the date of application would appear to be later than the date of installation of the circuits in question. Given that, among other things, BC TEL did not initially charge contribution, the Commission considers that there are special circumstances here which would justify making the exemption effective the date of installation.

10. The Commission is also of the view that Westel should review the configuration before 1 January 1998 to ensure that the circuits continue to be dedicated and that, therefore, the contribution exempt status remains valid in light of Order 97-590.

11. Based on the foregoing, the Commission orders that:

a) Westel's application is approved effective the date of installation, subject to Westel providing a revised affidavit within 30 days from the date of this Order affirming that it offers only data service at its Kelowna point of presence; and

b) Westel should review the configuration before 1 January 1998 to ensure that the circuits continue to be dedicated and that, therefore, the contribution exempt status remains valid.

Laura M. Talbot-Allan
Secretary General

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