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Ottawa, 25 March 1998
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Telecom Order CRTC 98-295
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By letter dated 12 September 1997, MetroNet Communications Group Inc. (MetroNet) applied for exemption from contribution charges for various service configurations. By letter dated 22 September 1997, MetroNet provided diagrams further describing the service configurations in question.
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File No.: 8626-M12-01/97
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1. By letters dated 28 October and 7 November 1997, Stentor Resource Centre Inc. (Stentor) responded to MetroNet's application on behalf of Bell Canada (Bell), BC TEL, and TELUS Communications Inc. (the companies). Stentor submitted that, on a prima facie basis, the configurations described by MetroNet appear to be subject to contribution charges.
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2. By letter dated 17 November 1997, MetroNet stated that, for purpose of clarification and simplification of the above-noted application, it wished to withdraw the application for contribution exemption on the proposed configurations for future end-user services.
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3. By letter dated 9 December 1997, Stentor noted that MetroNet had attached to its most recent submission a revised diagram depicting the remaining configurations for which an exemption is sought. Stentor provided its own characterization of the situation, supported by its Figures 1 to 4. Stentor submitted that MetroNet's application should be judged fundamentally on the basis of whether contribution should apply in such cases, not on the basis of how the arrangement might be configured.
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4. Stentor maintained all configurations, as described in Figures 1 to 4 of its 9 December 1997 letter, should be assessed contribution as the approval of MetroNet's application would create an inequitable contribution regime that would be inappropriate in light of the current regulatory environment. Stentor stated that it would be unfair and inappropriate to approve exemptions where such arrangements are configured in a fashion to provide local and long distance services to Centrex users in a manner which should appropriately attract contribution towards the costs of the provision of local services by the competitive local exchange carriers (CLECs) and incumbent local exchange carriers providing such services.
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5. By letters dated 18 December 1997 and 7 January 1998, MetroNet stated that due to its evolving network strategy, it has decided to withdraw the contribution exemptions requested for the dedicated circuits between the Centrex leased to MetroNet and the networks of various alternate providers of long distance service (APLDS).
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6. MetroNet stated that it maintained its request for a contribution exemption, effective 12 September 1997, in respect of Centrex public switched telephone network (PSTN) connections provided by Bell. MetroNet noted that regardless of changes in its network strategy, its resale of Centrex will continue to involve the use of Centrex public switched telephone network (PSTN) connections. MetroNet stated that these PSTN connections are, and will continue to be, used solely for the purpose of providing local services to MetroNet's end-customers. MetroNet suggested that it file, consistent with the Commission's recent approach in Telecom Orders CRTC 97-139 (Optel Communications Corporation) and 97-1555 (AT&T Canada Long Distance Services Company), a single affidavit with Bell affirming that the Centrex PSTN connections are for use by MetroNet solely to provide local services to its end-customers.
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7. The Commission notes in MetroNet's letters of 17 November 1997 and 7 January 1998 that it has withdrawn its application for contribution exemption for: (i) the proposed network configurations; and (ii) the dedicated circuits between the Centrex leased to MetroNet and the networks of various APLDS. However, it maintained its request for a contribution exemption, effective 12 September 1997, in respect of Centrex PSTN connections provided by Bell which are used to provide local services. Accordingly, this Order addresses only those Centrex PSTN connections.
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8. The Commission is of the view that the configuration of MetroNet's Centrex PSTN connections is similar to that approved by the Commission for AT&T Canada Long Distance Services Company (AT&T Canada LDS) in Telecom Order CRTC 97-1555 dated 23 October 1997 and that approval of MetroNet's PSTN connections is warranted. The Commission is of the view that it would be appropriate to apply the same process which was applied to AT&T Canada LDS to MetroNet in this case. The Commission notes that this process only applies to Bell.
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9. In light of the foregoing, the Commission orders that:
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(a) MetroNet's application for the Centrex PSTN connections provided by Bell is approved effective the date of installation subject to MetroNet filing a single affidavit with Bell affirming that the Centrex services in question are for the use of MetroNet solely to provide local services to its end-customers; and
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(b) MetroNet must file its affidavit with Bell after the first of the Centrex services has been installed by Bell.
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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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