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Ottawa, 20 March 1998
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Telecom Order CRTC 98-286
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By letter dated 19 December 1997, AT&T Canada Long Distance Services Company (AT&T Canada LDS) applied for exemption from contribution charges for certain private line Canada-U.S. circuits and interconnection line-side circuits used to provide Internet services.
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File No.: 8626-A4-05/97
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1. By letter dated 14 January 1998, AT&T Canada LDS provided a technical audit report of the network configuration in support of its application.
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2. By letter dated 13 February 1998, Stentor Resource Centre Inc. (Stentor) responded on behalf of and with the concurrence of BC TEL, Bell Canada, Maritime Tel & Tel Limited, MTS NetCom Inc., The New Brunswick Telephone Company, Limited, NewTel Communications Inc., TELUS Communications Inc. and TELUS Communications (Edmonton) Inc. (collectively, the companies).
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3. Stentor stated that the companies have reviewed the technical audit report and noted that the auditor has examined circuit documentation, inspected network arrangements at AT&T Canada LDS' two current Internet hub locations, and conducted tests of the cross-border circuits and the interconnecting line-side circuits. Stentor stated that further, the auditor has confirmed that the above-noted facilities are used only to carry Internet traffic and are configured to operate separately from AT&T Canada LDS' switched voice network.
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4. Stentor noted that the technical audit report, at page 1, stated that "the AT&T Canada LDS network is being expanded and upgraded in preparation to support the WorldNet Internet service that is scheduled for launch in January". In this respect, Stentor noted that AT&T U.S. has recently announced a market trial initiative for its WorldNet service which is intended to permit voice telephone calls over the WorldNet service. Stentor submitted that should the Commission grant AT&T Canada LDS' exemption request, such exemption might no longer be valid if AT&T Canada LDS chooses at some later date to also offer voice telephone calls to and from the AT&T U.S. WorldNet service.
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5. Stentor stated that in light of the auditor's report, it appears that AT&T Canada LDS has satisfied the evidentiary requirements for the requested contribution exemption. Accordingly, Stentor stated that the companies agree with the requested exemption, effective the date of application. Stentor submitted that given the nature of the service arrangements, this configuration should be subject to the possibility of future random audits.
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6. By letter dated 20 February 1998, AT&T Canada LDS noted Stentor's submission that AT&T Canada LDS' application for an exemption from contribution might no longer be valid if it chooses to offer voice services to and from AT&T Corporation WorldNet Service. AT&T Canada LDS responded that since, at this point in time, it has no plans to offer voice services over the Internet, Stentor's reference to AT&T Corporation's market trial initiative should be considered irrelevant for the purposes of this application.
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7. The Commission is of the view that AT&T Canada LDS has filed a satisfactory technical audit, met the evidentiary requirements as set out in Applications for Contribution Exemptions, Telecom Decision CRTC 93-2, 1 April 1993, and notes that Stentor has also agreed with the requested exemption.
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8. The Commission agrees with Stentor's submission that given the nature of the service arrangements, this configuration should be subject to the possibility of future random audits, consistent with previous Commission's precedents.
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9. In light of the foregoing, the Commission orders that:
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(i) AT&T Canada LDS' application is approved effective the date of application (19 December 1997), with the configuration subject to the possibility of future random audits; and
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(ii) AT&T Canada LDS is reminded that, if in the future, it offers public switched interexchange voice services over the Internet, its exemption would no longer be valid, and it would be expected to pay the appropriate contribution, as set out in Telecom Order CRTC 97-590 dated 1 May 1997.
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Laura M. Talbot-Allan
Secretary General
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This document is available in alternative format upon request.
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