ARCHIVED -  Telecom Order CRTC 97-704

Telecom Order

Ottawa, 28 May 1997

Telecom Order CRTC 97-704

The Commission received an application from Bell Advanced Communications 1996 Inc. (BAC) (formerly-Bell Advanced Communications), dated 7 March 1997, for exemption from contribution charges for a cross-border circuit which is currently used for administrative purposes, but will utilmately be used to carry end customers' data traffic.

File No.: 97-8180-5-B12-01

1. BAC stated that it is solely a data and dedicated services provider, and does not provide joint-use voice services to its customers. BAC noted that it has already filed affidavits to this effect in previous contribution exemption applications. BAC stated that the first affidavit dated 5 September 1995 attested that BAC is a data reseller and that the second affidavit dated 3 January 1996 modified the first affidavit to confirm that BAC is also a reseller of dedicated voice services.

2. BAC attached that a confidential schematic diagram describing the network configuration, a copy of which was provided to Bell Canada (Bell) as the underlying carrier providing the facilities.

3. BAC submitted that this configuration is eligible for a contribution exemption on the basis that the circuit is currently used only for testing and administrative purposes. In this respect, BAC noted that Bell provides and controls the network configuration and can verify that the facility in question is used only for the carriage of administrative data traffic and does not share DS-0 facilities with the dedicated voice private line services which were the subject of BAC's previous exemption application dated 3 January 1996 and approved in Telecom Order CRTC 96-820, dated 1 August 1996.

4. As well, BAC noted that when the circuit is turned up for commercial use, it will be used solely to carry data traffic. Accordingly, BAC submitted that the circuit should be eligible for a data contribution exemption at that time.

5. In light of the above, BAC requested that the Commission grant approval of an administrative exemption for this configuration effective the date of installation. BAC also requested that the Commission grant advance approval of a contribution exemption with respect to the use of the circuit to provide data services to its customers.

6. By letter dated 16 April 1997, Bell noted that BAC is a reseller of data and dedicated services and has filed affidavits with the Commission affirming that BAC does not offer joint-use voice services. Bell also confirmed that it controls the routing of traffic over the facility which is the subject of this application and can verify that the facility is currently used only to carry administrative data traffic. With respect to BAC's request for advance approval of an exemption for the commercial use of the facility, Bell noted that since it maintains the configuration and routing of traffic over the facility and as long as the design of the configuration remains the same in that it can be used only to transmit data traffic, a contribution exemption appears to be appropriate. Accordingly, Bell agreed with the requested exemptions.

7. The Commission notes that Bell controls the network configuration and has provided carrier verification, thereby meeting its evidentiary requirements and that Bell will be able to verify the network when it is converted to data.

8. In light of the foregoing, the Commission orders that:

(a) the exemption regarding the configuration operating as adminstrative circuits is approved effective the date of installation; and

(b) advance approval of the exemption regarding the configuration is granted when it will operate as data circuits effective the date of installation.

Allan J. Darling
Secretary General

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