ARCHIVED -  Telecom Costs Order CRTC 98-8

Telecom Costs Order

Ottawa, 24 April 1998

Telecom Costs Order CRTC 98-8

In re: Local Pay Telephone Competition, Telecom Public Notice CRTC 97-26

Reference: 8650-C12-01/97

Application for Costs by the B.C. Old Age Pensioners' Organization, Council of Senior Citizens' Organizations of B.C., Federated Anti-Poverty Groups of B.C., Senior Citizens' Association of B.C., West End Seniors' Network, End Legislated Poverty, B.C. Coalition for Information Access and Tenants Rights Action Coalition (BCOAPO et al.).

2. POSITION OF PARTIES

3. By letter dated 8 September 1997, BCOAPO et al. applied for costs in relation to this proceeding. BCOAPO et al. submitted that it represents a class of subscribers that has an interest in the proceeding, has participated responsibly, and has contributed to a better understanding of the issues by reviewing the American experience and providing a synopsis of the issues from the perspective of British Columbia (B.C.) subscribers.

4. In its answer, dated 18 September 1997, Stentor Resource Centre Inc. (Stentor) objected to an award of costs for BCOAPO et al. on the basis that it had not contributed to a better understanding of the issues by the Commission. Stentor noted, in this respect, that BCOAPO et al.'s submissions were very short, failed to provide any elaboration upon or analysis in support of the recommendations provided, and relied heavily on the submissions of other parties. Stentor submitted that while BCOAPO et al. had referenced the American experience and the perspective of B.C. subscribers in its application, this is not evident in its submissions.

5. In its reply, dated 19 September 1997, BCOAPO et al. acknowledged that the volume of work involved in its participation was "on the modest end of the scale", but that accordingly, this would be reflected in the quantum of costs claimed. BCOAPO et al. submitted that it offered a number of concrete and constructive proposals, and that its decision not to file evidence of its own should enhance its entitlement to costs as there should be no reward for "bloating interventions with redundant materials". BCOAPO et al. expressed concern that there not be a policy on costs for small scale interventions that could pose a substantial longer-term threat to public participation.

6. The Commission also received a submission from AT&T Canada Long Distance Services Company (AT&T Canada LDS) on 26 September 1997 in which it supported BCOAPO et al.'s application.

7. With respect to which party or parties should be responsible for paying any costs awarded, Stentor submitted that any such costs should be apportioned equally among current providers of local pay telephone service as well as those interveners who are potential competitive providers of that service. AT&T Canada LDS submitted that any costs awarded should be recovered from the telephone companies which currently offer local pay telephone service, as well as those parties who have expressed an interest in offering that service.

8. In its answer, filed on 9 February 1998, Canada Payphone Corporation (CPC) noted that it does not object to helping defray the costs of those interveners who have applied for costs in this proceeding, but asked that when apportioning costs, the Commission take into account the fact that the payphone market has not yet been opened to competition, and parties such as CPC have not yet had an opportunity to commence generating payphone revenues.

9. In its answer, dated 12 February 1998, Queen's University (Queen's) submitted that it should not be made a respondent to costs on the basis that it is not a commercial business, it is experiencing increasing pressure on its own funding, and it would be inappropriate for the Commission to order one publicly funded institution to pay a portion of the costs of other publicly funded organizations. The Commission notes that Queen's has filed an application for costs in this proceeding.

10. COMMISSION DETERMINATION

11. The Commission is of the view that BCOAPO et al. has failed to fully satisfy the test for costs set out in subsection 44(1) of the CRTC Telecommunications Rules of Procedure (the Rules).

12. The Commission notes, for example, in this regard that BCOAPO et al.'s submissions provided little elaboration or analysis, and that its reply submission consisted almost exclusively of statements adopting the positions of other parties. While the Commission agrees that the length of an intervener's submissions should not, of itself, be determinative of whether costs should be awarded, the Commission is of the view that in this case, BCOAPO et al.'s participation cannot be said to have fully contributed to a better understanding of the issues by the Commission.

13. In light of the above, the Commission has concluded that a partial award of costs is appropriate in this case. The Commission considers that BCOAPO et al. should recover that portion of its costs reasonably and necessarily incurred in respect of its participation prior to the preparation and filing of its submissions.

14. With respect to the appropriate respondents to costs, the Commission is of the view that consistent with recent Costs Orders, those parties that have both an interest in the outcome of the proceeding and who have participated actively should be named as respondents. Applying this analysis, the Commission considers that the telephone companies made party to this proceeding (through Stentor) should be named as respondents as they have participated actively, and currently enjoy a monopoly on the provision of local pay telephone service.

15. The Commission also considers that AT&T Canada LDS and Call-Net Enterprises Inc. (Call-Net) should be named as respondents since each has participated actively, and as interexchange carriers, each has an interest in the outcome of the proceeding. The Commission notes, in this regard, that both companies expressed concerns that equal access to their respective long distance networks must be made available from competitors' payphones. Finally, the Commission considers that CPC should be named as a respondent to costs as it has participated actively and has an interest in the outcome of the proceeding as evidenced by its intention to provide competitive local pay telephone service.

16. While Queen's has participated actively in this proceeding, it is not a commercial entity. In the circumstances of this case, the Commission is of the view that it should not be named as a respondent.

17. With respect to the quantum of costs to be assessed to each respondent, the Commission is of the view that the Stentor members made parties to this proceeding, as the incumbent providers of payphone service, should be responsible for 85% of the costs, and that Call-Net, AT&T Canada LDS and CPC each should be responsible for 5%.

18. DIRECTION AS TO COSTS

19. BCOAPO et al.'s application for an award of costs in respect of this proceeding is approved in part such that BCOAPO et al. may recover any costs reasonably and necessarily incurred for its participation prior to the preparation and filing of submissions.

20. Costs awarded herein shall be subject to taxation in accordance with the Rules.

21. Costs awarded herein shall be paid to BCOAPO et al. by Stentor, AT&T Canada LDS, Call-Net and CPC in the proportions set out above forthwith upon issuance of the Taxation Order.

22. Costs awarded herein shall be taxed by Geoff Batstone.

23. BCOAPO et al. shall, within 30 days of this Order, submit a Bill of Costs and an Affidavit of disbursements directly to the Taxing Officer, serving a copy on the respondents.

24. The respondents may, within two weeks of receiving those documents, file comments directly with the Taxing Officer with respect to the costs claimed, serving a copy on BCOAPO et al.

25. BCOAPO et al. may, within two weeks of receiving any such comments, file a reply directly with the Taxing Officer, serving a copy on the respondents.

26. Documents to be filed or served must be actually received, not merely sent, by the dates indicated.

Laura M. Talbot-Allan
Secretary General

This document is available in alternative format upon request.

COS98-8_0