ARCHIVED -  Telecom Order CRTC 97-1567

Telecom Order

Ottawa, 28 October 1997

Telecom Order CRTC 97-1567

By letter dated 1 October 1996, Bell Sygma Inc., operating as Bell Global Solutions (BGS), applied for contribution exemption for interconnecting circuits, Canada-U.S. circuits and overseas access circuits used to provide data and dedicated network configurations to customers of BGS and also used internally by BGS for testing and maintenance purposes.

File No.: 96-2052

1. BGS served a copy on Stentor Resource Centre Inc. (Stentor) and AT&T Canada Long Distance Services Company (AT&T Canada LDS) as the respondents. BGS stated that it is a data and dedicated services provider, and does not provide joint-use voice services to its customers.

2. BGS noted that the configurations in question are provisioned as follows: (1) networks which are used and provisioned solely for the transmission of data traffic; or (2) dedicated voice networks used and provisioned solely for individual end customers; BGS stated that such configurations are designed to prevent the sharing of dedicated DS-0 or equivalent facilities by more than one end customer; or (3) dial access circuits used exclusively by it to perform testing and maintenance of its customer's networks.

3. BGS filed additional letters on 15 October 1996 (enclosing circuit schematics), 14 January, 20 January (enclosing circuit schematics), 7 February (enclosing circuit schematics), 27 May (enclosing technical audit #1), and 5 September 1997 (enclosing technical audit #2). AT&T Canada LDS filed letters on 18 October 1996 and 16 June 1997. Stentor filed letters on 9 December 1996, 16 June and 17 September 1997.

4. The Commission is of the view that there are four issues.

5. The first issue is whether the application should be approved.

6. The Commission is of the view that BGS has filed two satisfactory technical audits, along with the appropriate affidavits and carrier verification. The Commission agrees with Stentor that the number of administrative circuits is reasonable. In the circumstances, the Commission is of the view that BGS has met the Commission's evidentiary requirements for contribution exemption [as set out in Applications for Contribution Exemptions, Telecom Decision CRTC 93-2, 1 April 1993 (Decision 93-2)] with the filing of the evidence noted above.

7. Accordingly, BGS' application is approved for the existing dedicated voice and dedicated data circuits, the existing local voice and data circuits, the proposed dedicated circuits, the proposed local circuits, the spare capacity, and the administrative circuits.

8. The second issue is the effective dates, if the application is approved.

9. The Commission notes that BGS assumed control of two networks: one on 1 October 1996, and the other on 1 January 1997. Also, BGS requested approval for three proposed networks. The Commission also notes that, pursuant to Telecom Order CRTC 97-590, dated 1 May 1997 (Order 97-590) BGS submitted that the exemption would continue to apply beyond 1 January 1998, on the grounds that the data and voice circuits in question are either dedicated or used solely for local services, and that the circuits used for local service are also used for long distance calling in an arrangement that restricts such calls to the use of long distance services which already are subject to contribution.

10. The Commission has examined the circuit schematics along with the carrier verifications and technical audits and agrees with BGS' submission. Based on the evidence and the precedent set out in Telecom Orders CRTC 97-750 and 96-273, the Commission finds that the effective dates for exemption for the dedicated voice and dedicated data circuits are as follows: (1) 1 October 1996 for the network taken over on 1 October 1996; (2) 1 January 1997 for the network taken over 1 January 1997; and (3) the dates of installation for the proposed networks. The exemption for these circuits would extend beyond 1 January 1998. The effective dates are the same for the local voice and data circuits.

11. The Commission notes that pursuant to Order 97-590, the Commission has ordered that, effective 1 January 1998, circuits used to carry a carrier's or reseller's administrative traffic will attract contribution charges if they are interconnected to a service provider's interexchange network. The Commission notes that the circuit schematics along with the carrier verifications and technical audits apparently did not specifically address the administrative lines and, in particular, whether they would qualify for exemption beyond 1 January 1998. Accordingly, the effective dates for exemption for the administrative circuits are as follows: (1) the administrative lines associated with the 1 October 1996 configuration are approved from the date of installation to 31 December 1997, with the period for 1 January 1998 onwards deferred pending the filing of additional evidence; (2) the administrative lines associated with the 1 January 1997 configuration are approved from the date of installation to 31 December 1997, with the period for 1 January 1998 onwards deferred pending the filing of additional evidence; and (3) the administrative lines associated with the proposed configuration are deferred pending the filing of additional evidence.

12. The third issue is whether AT&T Canada LDS' request for additional process should be approved.

13. AT&T Canada LDS submitted that a process is required to ensure on a going-forward basis that BGS is not leasing cross-border or international dedicated voice facilities to resellers or sharing groups. BGS provided an affidavit confirming that it currently provides only dedicated and data services to its customers and that it does not currently provide services to resellers or sharing groups. BGS noted that should there ever be a requirement to provide a data or dedicated voice service to a reseller or sharing group, it would be required, in association with the reseller or sharing group, to seek a contribution exemption and provide appropriate evidence to support the exemption pursuant to the Commission's requirements.

14. The Commission notes that BGS has satisfied the evidentiary requirements of Decision 93-2. The Commission disagrees with AT&T Canada LDS that further process is appropriate in the circumstances of this case. Accordingly, AT&T Canada LDS' request is denied.

15. The fourth issue is the appropriateness of future random audits.

16. The Commission is of the view that consistent with its practice, the networks covered by the technical audits are subject to the possibility of future random audits.

Laura M. Talbot-Allan
Secretary General

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