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ARCHIVED -  Telecom Order CRTC 97-572

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 Telecom Order

 Ottawa, 29 April 1997
 Telecom Order CRTC 97-572
 The Commission received an application by Northwestel Inc. (Northwestel) on 1 May 1996, pursuant to section 34 of the Telecommunications Act (the Act), requesting forbearance from the regulation of its Datapac, future X.25, packet data and frame relay services.
 File No.: 96-2096
1.  Northwestel requested that the Commission refrain from exercising all powers and performing all duties under sections 25, 29, and 31, and subsections 27(1), 27(5), and 27(6) of the Act.
2.  Northwestel noted that, in Telecom Order CRTC 96-130, 19 February 1996 (Order 96-130), the Commission forbore from regulating, with respect to the same sections of the Act, the provision of these services by the federally regulated Stentor Resource Centre Inc. (Stentor) companies.
3.  On 6 June 1996, the Commission issued Northwestel Inc. - Forbearance from Regulation of Packet Data Services, Telecom Public Notice CRTC 96-23, seeking comments on the application.
4.  No comments were received in response to this Public Notice.
5.  The Commission, in Order 96-130, forbore from regulating the provision of Datapac, Hyperstream and Pospac and future X.25 and packet data and frame relay services by the Stentor companies pursuant to section 34 of the Act, finding that the provision of these services is or will be subject to sufficient competition to protect the interests of users.
6.  Northwestel requested that the same treatment be conferred upon it, arguing that its customers are sufficiently protected because the rates it charges for these services are set jointly by the Stentor companies, are the "mirror image" of the rates employed by the Stentor companies, and are thus determined in competitive markets.
7.  The Commission expects that Northwestel's rates for these services will continue to be the "mirror image" of rates for these services charged by the Stentor companies.
8.  The Commission notes that no one objected to Northwestel's request for forbearance.
9.  In the Commission's view, in the case of Northwestel, unlike the case of the Stentor companies, it is not possible to forbear pursuant to subsection 34(2) because there is not, nor is there likely to be, sufficient competition in the provision of these services in Northwestel's territory to protect the interests of users.
10.  However, the Commission is of the view that forbearance would be appropriate in Northwestel's case as the rates applicable in Northwestel's territory are set jointly by the Stentor companies, are in fact, "mirror image" of the Stentor companies' rates and are therefore based on the competitive markets that prevail in Stentor's territory.
11.  The Commission therefore finds as a question of fact that it would be consistent with the Canadian telecommunications policy objectives of the Act to forbear, pursuant to subsection 34(1), in the same manner applied to the Stentor companies in Order 96-130, from regulating Northwestel's provision of the above-mentioned services.
12.  Northwestel requested that the Commission refrain from exercising all powers and performing all duties under sections 25, 29, and 31, and subsections 27(1), 27(5), and 27(6) of the Act.
13.  In Order 96-130, the Commission also partially forbore from section 24, retaining it only for existing conditions governing treatment of customer confidential information and by-pass restrictions (and required these conditions to be incorporated into contracts and other arrangements with customers on a going-forward basis) and for the ability to impose conditions in the future.
14.  On a going-forward basis, commencing immediately, all such conditions are to be included where appropriate in all contracts or other arrangements with customers for the provision of these services.
15.  As in Order 96-130, forbearance for future X.25, packet data and future frame relay services is limited to those that would otherwise have been made available under general tariffs.
16.  As in Order 96-130, the Commission requires that upon offering any such future services, a block diagram must be filed with the Commission showing all types of plant resources to be employed and indicating whether such resources are discrete or shared, together with a description of the general types of applications which may be handled by the service in order to demonstrate that the service meets the conditions of forbearance.
17.  As is the case for Stentor members, the Commission will continue to exercise powers and perform duties under subsections 27(2), 27(3) and 27(4) in relation to unjust discrimination and undue or unreasonable preference with regard to issues related to access to the network and the resale and sharing of the services forborne from in this Order.
18.  In light of the foregoing, the Commission orders that:
 (a) Pursuant to subsection 34(4), effective the date of this Order, sections 24 (in part), 25, 29 and 31 as well as subsections 27(1), (5) and (6) of the Act do not apply to Northwestel's Datapac, future X.25, packet data and frame relay services to the extent that they are inconsistent with the Commission's determinations herein.
 (b) Northwestel is directed to issue tariff pages, within 15 days of the date of this Order, withdrawing the tariffs for Datapac, X.25, packet data and frame relay services.
 Allan J. Darling
 Secretary General
 This document is available in alternative format upon request.

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