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Ottawa, 30 October 1998
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Telecom Order CRTC 98-1087
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By letter dated 12 June 1998, Call-Net Enterprises Inc. (Call-Net), on behalf of Sprint Canada Inc. (Sprint Canada), submitted an application requesting a contribution exemption with respect to circuits which are used and provisioned as dedicated Canada-U.S. facilities for five end-customers of Sprint Canada. In support of its application, Call-Net filed affidavits from each of Sprint Canada's end-customers affirming that the cross-border private lines in question are dedicated solely to each end-customer's use. Call-Net also requested that the contribution exemption be effective the date of installation of the circuits.
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File No.: 8626-S2-05/98
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1.By letter dated 3 July 1998, Stentor Resource Centre Inc. (Stentor) submitted comments on behalf of Bell Canada and TELUS Communications Inc. (collectively, the companies).
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2.Stentor stated that it has reviewed the affidavits and submitted that they generally appear to satisfy the Commission's evidentiary requirements with respect to such exemptions. Accordingly, the companies agreed with the requested exemptions.
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3.With respect to Sprint Canada's request that the contribution exemptions be effective the date of installation, Stentor noted that the Commission provided guidelines regarding the effective dates of contribution exemptions in Effective Date of Contribution Exemptions, Telecom Public Notice CRTC 95-26 dated 12 June 1995 (PN 95-26). Stentor noted that at page 5 of PN 95-26, the Commission stated that: "contribution exemptions will generally be granted effective the later of the date of application or the date of installation, absent special circumstances". Stentor noted that Sprint Canada has not suggested, in its application, that any special circumstances exist. In light of this, the companies submitted that, should the Commission approve Sprint Canada's application, the effective date should be consistent with the guidelines established in PN 95-26.
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4.The Commission is of the view that Call-Net has satisfied the evidentiary requirements for exemptions for dedicated circuits and notes that Stentor agrees.
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5.Given that Call-Net has not submitted evidence that special circumstances exist to justify the effective date being the date of the installation, the Commission considers that the effective date should, consistent with normal practice, be the date of affidavit unless there is a significant difference between the date of the application and the date of the affidavit.
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6.The Commission also notes that in Telecom Order CRTC 98-886 dated 3 September 1998 (Order 98-886), the Commission stated that in the future, Call-Net may file a single application every 120 days covering a number of customers provided the single application is filed within 120 days of the date of execution of the affidavits of the customers in question.
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7.The Commission notes that the intervals between date of affidavit and date of application range from eight days to one month.
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8.Consistent with Order 98-886, the Commission is of the view that these delays are acceptable and that it is appropriate that the dates of affidavits be the effective date.
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9.In light of the foregoing, Call-Net's application is approved effective the dates of the affidavits.
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Secretary General
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This document is available in alternative format upon request.
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