ARCHIVED -  Telecom Order CRTC 97-567

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 Telecom Order

 Ottawa, 29 April 1997
 Telecom Order CRTC 97-567
 The Commission has received an application from AT&T Canada Long Distance Services Company (AT&T Canada LDS) dated 13 November 1996, for contribution exemption for transit facilities configured exclusively for the transport of transit traffic from the United States (U.S.) to international destinations via Teleglobe Canada Inc. (Teleglobe).
 File No.: 96-2477
1.  AT&T Canada LDS requested that the contribution exemption be effective the date of circuit activation, 12 November 1996.
2.  AT&T Canada LDS stated that the configuration in question consists of one Canada-U.S. cross-border trunk group and one overseas access circuit trunk group which form a "nailed up" connection in AT&T Canada LDS' switch, such that the two groups may only be used for the carriage of transit traffic from the U.S. to international destinations via Teleglobe.
3.  AT&T Canada LDS stated that a technical audit of the configuration, confirming that the facilities are configured such that no traffic originating from these facilities can egress onto the Canadian Public Switched Telephone Network via AT&T Canada LDS' switch, will be initiated coincident with the trunk group activation date and submitted within 60 days thereafter.
4.  AT&T Canada LDS also stated that the technical audit will confirm that it is not transferring domestic traffic onto these facilities.
5.  AT&T Canada LDS stated that the facilities described in this application were in-service as of 12 November 1996.
6.  AT&T Canada LDS noted that this application has the same network configuration that was granted a contribution exemption in BC TEL operating territory in Telecom Order CRTC 96-828 dated 2 August 1996.
7.  By letter dated 13 January 1997, AT&T Canada LDS filed both a confidential and abridged version of the technical audit as well as an affidavit completed by the auditor.
8.  AT&T Canada LDS submitted that the audit confirms that the circuits in question meet the eligibility requirements for contribution exemption.
9.  By letter dated 10 February 1997, Bell Canada (Bell) agreed that the configuration as described appeared to prevent calls originating or terminating in Canada from being carried on the facilities in question.
10.  Bell noted, however, that the auditor has not specified if any administrative procedures or controls are in place to prevent or to record any changes to switch programming or data tables which could alter the use of the facilities.
11.  Bell submitted that the existence of such control procedures is a normal requirement in cases where the arrangements for routing of calls is in the applicant's control or is determined by the programming of switching equipment.
12.  Bell agreed that the evidence provided confirmed that the configuration is restricted to transit traffic but that final approval should be subject to confirmation by the applicant that appropriate control procedures are in place to ensure the continued compliance of the configuration with the conditions for exemption.
13.  Bell also submitted that the Commission may wish to identify that the configuration is one which may be subject to future random audits.
14.  AT&T Canada LDS did not reply.
15.  The Commission is of the view that AT&T Canada LDS has filed a satisfactory audit according to the evidentiary requirements of Applications for Contribution Exemptions, Telecom Decision CRTC 93-2, 1 April 1993.
16.  The Commission agrees with Bell's submission that: (a) the approval should be subject to confirmation by the applicant that appropriate control procedures are in place to ensure the continued compliance of the configuration with the conditions for exemption; and (b) that the configuration should be subject to future random audits.
17.  In light of the foregoing, the Commission orders that:
 (a) The application is approved on an interim basis effective 12 November 1996 (the date of activation of the circuits), with final approval being subject to confirmation by the applicant, within 30 days, that appropriate control procedures are in place to ensure the continued compliance of the configuration with the conditions for exemption.
 (b) The configuration is subject to future random audits.
 Allan J. Darling
Secretary General
 This document is available in alternative format upon request.

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