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Telecom Public Notice CRTC 97-42
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SERVICE TO HIGH-COST SERVING AREAS
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1. The Telecommunications Act (the Act), in subsection 7(b), identifies as a policy objective for Canadian telecommunications the need "to render reliable and affordable telecommunications services of high quality accessible to Canadians in both urban and rural areas in all regions of Canada."
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2. In Local Service Pricing Options, Telecom Decision CRTC 96-10, 15 November 1996, the Commission stated that it considers the matter of service to high-cost areas, including the extension of service to unserved areas and the upgrading of existing service to underserved areas to be important. In that Decision the Commission stated its intention to consider these issues following the conclusion of the local competition proceeding, to the extent that they had not been addressed in that proceeding.
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3. In Local Competition, Telecom Decision CRTC 97-8, 1 May 1997, the Commission noted that the advent of competition in all telecommunications markets raises the issue of the appropriate regulatory approach to the continued achievement of the policy objectives set out in subsection 7(b) of the Act. As well, the Commission noted that there was discussion during the proceeding with respect to the meaning and significance for regulatory purposes of the terms "obligation to serve", "universal service obligation" and "carrier of last resort". The Commission concluded that the most appropriate way to ensure these goals is to maintain the incumbent local exchange carriers' (ILECs) current obligation to serve, pending further investigation through a public process into an approach for serving high-cost areas that is more suited to a fully competitive environment.
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4. The Commission hereby initiates a proceeding to consider the issues associated with service to high-cost serving areas (HCSAs). The Commission seeks comments associated with service to HCSAs, including: (i) the criteria for establishing HCSAs [including for example, whether different categories of HCSAs are appropriate, e.g., remote areas]; (ii) the criteria and mechanism for extending and upgrading service in a competitive environment; (iii) whether changes are required to current obligations to serve; (iv) the appropriate costing methodology to use to establish service costs in HCSAs; (v) whether HCSAs should be subsidized and if so, what would be the appropriate funding mechanism [e.g., a high-cost service fund]; (vi) services [with definitions as required] and facilities to be funded from a high-cost service fund [to include, where appropriate, consideration of uneconomic toll service and unusual expenses required for sustainable toll competition]; (vii) what are the appropriate sources of funding for any funding mechanism that may be established; (viii) eligibility and mechanism for receiving funding and whether there should be any limits on funding; (ix) the funding level per service [e.g., maximum subsidy, need for uniformity between regions, etc.] and the annual total value of any high-cost service fund or other funding mechanism that may be established, reflecting the funding level and the timing of any non-recurring investments [to include an inventory of existing services, future service extensions, future service upgrades, etc.]; (x) frequency of review of the parameters of any funding mechanism; (xi) any relationship to or impact on the existing contribution mechanism and price cap regime; (xii) implementation, operation and administration of any funding mechanism; (xiii) an appropriate mechanism for evaluating any funding mechanism vis-à-vis achieving the objectives of subsection 7(b) of the Act; and (xiv) any other issues that the Commission should consider.
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5. It is the Commission's intention to implement by 1 January 2000 any safeguards or mechanisms required to address the issue of service to HCSAs.
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6. While recognizing that there is a link between the existing contribution regimes and service to HCSAs to the extent that some of these areas may be funded by contribution payments, it is not the Commission's intention to conduct an overall review of the existing contribution regimes in this proceeding.
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7. In Telecom Public Notice CRTC 97-41, Review of the Contribution Regime of Independent Telephone Companies in Ontario and Quebec, (PN 97-41) published today, the Commission will be examining issues that are related to the issues raised in this PN. The Commission notes therefore, that its decision in that proceeding may be taken into account by the Commission in its deliberations in this proceeding.
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8. All Stentor-member operating companies and independent telephone companies subject to CRTC jurisdiction (collectively, the telephone companies) are made parties to this proceeding. Other parties wishing to participate in this proceeding must notify the Commission of their intention to do so by writing to Mrs. Laura M. Talbot-Allan, Secretary General, CRTC, Ottawa, Ontario, K1A 0N2, fax: 819-953-0795, by 1 February 1998. Parties are to indicate in the notice their Internet email address, where available. If parties do not have access to the Internet, they are to indicate in their notice whether they wish to receive disk versions of hard copy filings. The Commission will issue a complete list of parties and their mailing addresses (including Internet email addresses, if available), identifying those parties who wish to receive disk versions.
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9. The Commission will issue initial interrogatories to the telephone companies by 20 February 1998. The intent of these interrogatories will be to inventory the areas/services that may be eligible to receive any high-cost funding and related financial information.
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10. Responses to initial interrogatories pursuant to paragraph 9 are to be filed with the Commission and served on all parties by 20 March 1998.
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11. The telephone companies are to file their submissions on service to HCSAs with the Commission and serve a copy on all parties by 1 May 1998. Other parties wishing to file submissions may do so by filing them with the Commission and serving a copy on all parties by 1 May 1998.
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12. Parties may address interrogatories to any party who files submissions pursuant to paragraph 11. Any such interrogatories must be filed with the Commission with a copy served on the relevant party or parties by 19 June 1998.
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13. Responses to interrogatories addressed pursuant to paragraph 12 are to be filed with the Commission with a copy served on all parties by 20 July 1998.
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14. Requests by parties for further responses to their interrogatories addressed pursuant to paragraph 13, specifying in each case why a further response is both relevant and necessary, and requests for public disclosure of information for which confidentiality has been claimed, setting out the reasons for disclosure, must be filed with the Commission with a copy served on the relevant party or parties by 10 August 1998.
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15. Responses to requests for further responses to interrogatories and for public disclosures must be filed with the Commission with a copy served on the party making the request by 17 August 1998.
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16. The Commission will issue a determination with respect to requests for disclosure and for further responses as soon as possible, and intends to direct that any information to be provided pursuant to that determination be filed with the Commission with a copy served on all parties to the proceeding by 4 September 1998.
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17. Parties may address a second series of interrogatories to parties who file submissions pursuant to paragraph 11. Any such interrogatories must be filed with the Commission with a copy served on the relevant party or parties by 18 September 1998.
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18. Responses to interrogatories addressed pursuant to paragraph 17 are to be filed with the Commission with a copy served on all parties by 16 October 1998.
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19. Requests by parties for further responses to their interrogatories addressed pursuant to paragraph 17, specifying in each case why a further response is both relevant and necessary, and requests for public disclosure of information for which confidentiality has been claimed, setting out the reasons for disclosure, must be filed with the Commission with a copy served on the party or parties in question by 30 October 1998.
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20. Responses to requests for further responses to interrogatories and for public disclosure must be filed with the Commission with a copy served on the party making the request by 6 November 1998.
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21. The Commission will issue a determination with respect to requests for disclosure and for further responses as soon as possible, and intends to direct that any information to be provided pursuant to that determination be filed with the Commission with a copy served on all parties to the proceeding by 27 November 1998.
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22. Final arguments from parties are to be filed with the Commission with a copy served on all other parties by 30 January 1999.
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23. Reply arguments from parties are to be filed with the Commission with a copy served on all other parties by 15 February 1999.
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24. Where a document is to be filed or served by a specific date, the document must be actually received, not merely mailed, by that date.
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25. In addition to hard copy filings, parties are encouraged to file with the Commission electronic versions of their submissions in accordance with the Commission's Interim Telecom Guidelines for the Handling of Machine-Readable Files, dated 30 November 1995. The Commission's Internet email address for electronically filed documents is public.telecom@crtc. gc.ca. Electronically filed documents can be accessed at the Commission's Internet site at http://www.crtc.gc.ca.
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REGIONAL CONSULTATIONS AND NOTIFICATION OF SUBSCRIBERS
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26. The Commission intends to conduct regional consultations in a number of locations throughout Canada. Specific times and locations are detailed below.
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27. The Commission wishes to ensure that participation in the consultations will be as broad as possible. The Commission notes in this regard the initiatives of Northwestel Inc. in previous proceedings held in northern Canada, whereby that company provided video conferencing to link certain communities to the regional consultations being held in its operating territory. The Commission invites telephone companies to make proposals to provide any such links that they consider would enhance the ability of the public to participate at these regional consultations. Any such proposals to the Commission are to be received by 2 February 1998.
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28. The Commission will issue further procedures no later than 6 March 1998 to reflect any such proposed video links.
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29. The telephone companies are to mail billing inserts notifying their subscribers that pursuant to the Commission's direction: (i) all federally-regulated telephone companies in Canada will file proposals for service to HCSAs by 1 May 1998; (ii) these proposals will be available for public inspection during normal business hours at the business offices of the respective telephone companies and the offices of the Commission; and, (iii) subscribers may provide comments by writing to the Commission by 30 January 1999 and/or by making representations at regional consultations. Persons wishing to participate at the regional consultations are to notify the Commission two weeks prior to the applicable date. Billing inserts should reflect any additional information included in the amendment to this Public Notice (paragraph 28) and should be received by all subscribers no later than 1 May 1998.
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30. Any person who wishes merely to file written comments in this proceeding, without receiving copies of the various submissions, may do so by writing to the Commission at the address noted in paragraph 8 by 30 January 1999.
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31. The documents made part of the record of this proceeding may be examined during normal business hours at the CRTC offices listed below:
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Bank of Commerce Building
1809 Barrington Street
Suite 1007
Halifax, Nova Scotia
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Tel: (902) 426-7997
Fax: (902) 426-2721
TDD: (902) 426-6997
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Place Montréal Trust
1800 McGill College Avenue
Suite 1920
Montréal, Quebec
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Tel: (514) 283-6607
Fax: (514) 283-3689
TDD: (514) 283-8316
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Central Building
Les Terrasses de la Chaudière
1 Promenade du Portage
Room 201
Hull, Quebec
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Tel: (819) 997-2429
Fax: (819) 953-0795
TDD: (819) 994-0423
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275 Portage Avenue
Suite 1810
Winnipeg, Manitoba
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Tel: (204) 983-6306
Fax: (204) 983-6317
TDD: (204) 983-8274
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580 Hornby Street
Suite 530
Vancouver, British Columbia
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Tel: (604) 666-2111
Fax: (604) 666-8322
TDD: (604) 666-0778
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DATES AND LOCATIONS OF REGIONAL CONSULTATIONS
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32. The Commission will conduct two regional consultations, one starting at 9:00 a.m. with the second starting at 6:30 p.m., in each of the locations and on the dates listed below:
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(1) in Whitehorse, Yukon, at the Westmark Whitehorse (hotel), Second Ave. and Wood St., on 25 May 1998;
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(2) in Prince Rupert, British Columbia, at the Coast Prince Rupert Hotel, 118-6th St., on 27 May 1998;
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(3) in Grande Prairie, Alberta, at the Grande Prairie Inn, 11633 Clairmont Rd., on 4 June 1998;
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(4) in Timmins, Ontario, at the Northern College of Applied Arts and Technology, Porcupine Campus, Lecture Room D118, on 8 June 1998;
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(5) in Thompson, Manitoba at the Burntwood Hotel, 146 Selkirk Ave., on 10 June 1998;
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(6) in Val d'Or, Quebec, at the Hôtel Confortel, 1001-3ième Avenue est, on 18 June 1998;
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(7) in Deer Lake, Newfoundland, at the Deer Lake Motel, (Trans-Canada Highway), on 22 June 1998; and
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(8) in Iqaluit, Northwest Territories, at the Frobisher Inn, (located in Astro Hill Mall), on 25 June 1998.
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This document is available in alternative format upon request.
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Laura M. Talbot-Allan
Secretary General
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