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Ottawa, 19 June 1998
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Telecom Order CRTC 98-600
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By letter dated 13 April 1998, Connectivity Managed Network Services Inc. (CMNS Inc.) applied for contribution exemption for the network described below. CMNS Inc. provided a copy of the application to Stentor Resource Centre Inc. (Stentor) on behalf of the respondents, Bell Canada (Bell), BC TEL, TELUS Communications Inc. (TCI), MTS Communications Inc. (formerly MTS NetCom Inc.) (MTS), The New Brunswick Telephone Company, Limited (NBTel), Maritime Tel & Tel Limited (MT&T), The Island Telephone Company Limited (Island Tel) and NewTel Communications Inc. (NewTel). CMNS Inc. stated that it is a reseller registered with the Commission and the Stentor companies.
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File No.: 8626-C34-01/98
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1. CMNS Inc. provided a schematic diagram to the Commission and Stentor in confidence. CMNS Inc. stated that the diagram describes a computer telephony integration service comprising integrated voice response equipment, other network equipment, and access arrangements. CMNS Inc. stated that the network allows callers to be routed to a customer-owned system to request information and service, or allows the customer-owned system to access enhanced features provided by CMNS Inc. CMNS Inc. stated that such enhanced services typically involve software programs and routing programs which provide the end-customer with data information or call routing and telemarketing features. CMNS Inc. submitted that this configuration is eligible for a contribution exemption on the basis that it is provisioned and used either as a local or dedicated service.
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2. In support of its application, CMNS Inc. also provided an affidavit affirming that it does not carry any voice traffic over its own network and accordingly, for the purpose of this application only resells local private lines which are not used to route traffic over its backbone data network. CMNS Inc. also requested an exemption for: (1) a dedicated interexchange private line arrangement which it may offer to some customers but which will also not be used to route traffic to its backbone data network; and (2) its administrative lines which are used only for internal calling and are not connected to any private line network. CMNS Inc. stated that all interexchange calls associated with these lines are routed via equal access arrangements to Canadian telecommunications carriers. CMNS Inc. also provided a second affidavit affirming the use of its administrative circuits.
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3. In light of the evidence provided with this application, CMNS Inc. requested that the Commission grant advance approval for contribution exemption for the network outlined in the diagram, as well as approve a contribution exemption for its circuits used for internal administrative purposes.
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4. CMNS Inc. submitted that the exemption associated with its administrative circuits would qualify for an exemption effective 1 January 1998, pursuant to Telecom Order CRTC 97-590 dated 1 May 1997 as such facilities are used solely for internal purposes and are not connected to the CMNS Inc. interexchange data network. CMNS Inc. stated that these circuits used for local administrative services are also used for long distance calling in an arrangement that restricts such calls to the use of long distance services which already attract contribution.
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5. By letter dated 6 May 1998, Stentor submitted comments on behalf of BC TEL, Bell, Island Tel, MTS, MT&T, NBTel, NewTel and TCI (collectively, the companies).
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6. Stentor understood that, based on the schematic diagram, the backbone network carries only data traffic and is not interconnected to the public switched telephone network (PSTN). In light of the above, Stentor submitted that it appears that CMNS Inc. is eligible for advance approval of its exemption request on the basis that the circuits in question will not be connected to the CMNS Inc. backbone data network and that this network does not access the PSTN in any event.
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7. Stentor noted that CMNS Inc. had also provided an affidavit which attested to the fact that the resold facilities are provisioned as local and/or dedicated services and are not connected to the backbone interexchange network. However, Stentor stated that since CMNS Inc. is requesting advance approval of an exemption for these facilities, the affidavit is invalid as it purports to attest to the use of services that have not yet been put in place. Therefore, Stentor submitted that should the Commission grant advance approval of CMNS Inc.'s request, such approval should be subject to the requirement that CMNS Inc. file a new affidavit with the Commission and the companies when the first services are installed. Stentor submitted that the affidavit should affirm that the installed circuits in question do not access an interexchange private line network by CMNS Inc. or any other service provider.
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8. With respect to the administrative services provided by NBTel, Stentor noted that the number of services appears to be reasonable in light of the size of the CMNS Inc. operation. Stentor stated that NBTel has also confirmed that these services are provided to CMNS Inc. and appear to be used for administrative purposes. Accordingly, Stentor agreed with the requested administrative exemption.
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9. The Commission agrees with Stentor that, based on the network diagram submitted by CMNS Inc., the circuits in question will not be connected to the CMNS Inc. backbone data network, and will not access the PSTN. The Commission is of the view that advance approval is appropriate for the circuits in question on the basis that they are local and/or dedicated. The Commission also agrees with Stentor that approval should be subject to CMNS Inc. filing a new affidavit with it and the companies when the first services are installed, affirming that the circuits in question are provisioned as local and/or dedicated services and do not access an interexchange private line network by CMNS Inc. or any other service provider.
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10. The Commission considers that CMNS Inc.'s affidavit supporting the administrative circuits meets the evidentiary requirements for an exemption. The Commission is of the view that approval of the application for administrative circuits, effective the date of installation, pursuant to Effective Date of Contribution Exemptions, Telecom Public Notice CRTC 95-26, 12 June 1995, is appropriate.
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11. In light of the foregoing, the Commission:
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(i) grants advance approval for the local and/or dedicated circuits subject to CMNS Inc. filing a new affidavit with the Commission and the companies when the first services are installed, affirming that the circuits in question are provisioned as local and/or dedicated services and do not access an interexchange private line network by CMNS Inc. or any other service provider; and
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(ii) approves the application for administrative circuits effective the date of installation.
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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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