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Ottawa, 18 August 1998
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Telecom Order CRTC 98-810
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On 28 April 1998, Teleglobe Canada Inc. (Teleglobe) filed revisions to its International Globeframe Service Tariff, proposing, among other things, new destinations, certain rate reductions and new contract periods. The company also proposed clarification of the billing mechanism.
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File No.: Tariff Notice 531
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1.AT&T Canada Long Distance Services Company (AT&T Canada LDS) opposed the proposed change that related to the billing mechanism.
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2.Teleglobe proposed the following wording:
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"Teleglobe invoices the customer for the Canadian half-circuit and the foreign half-circuit. The customer can take advantage of the end-to-end billing option and pay for the service in a single currency through Teleglobe."
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to replace the current wording which states:
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"Corresponding rates for the portion of the service from the overseas country to the appropriate Atlantic or Pacific Ocean midpoint are established by the foreign carrier."
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3.AT&T Canada LDS submitted that Teleglobe was proposing to change the billing arrangement for its customers of the International Globeframe Service by passing on the charges associated with the foreign half-circuit to AT&T Canada LDS,rather than billing AT&T Canada LDS' customers directly for the foreign half-circuit.
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4.AT&T Canada LDS submitted that there exists no basis for Teleglobe changing the billing arrangement at this time, and that the proposed changes raise significant operational and financial issues for AT&T Canada LDS.
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5.AT&T Canada LDS submitted that the rates cited in Teleglobe's Tariff are for service to or from the mid-point of the Atlantic or Pacific ocean, and that the customer is not contracting for a service beyond this point.
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6.AT&T Canada LDS also submitted that the proposed changes violated the AT&T Canada LDS/Teleglobe Agreement (the Agreement), and would require a complete renegotation of contracts and introduction of new products.
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7.Teleglobe submitted that the wording in the Globeframe Tariff and of the Agreement clearly states that International Globeframe Service is an end-to-end service and that there is a further charge in addition to the specific rate contained in the tariff. Teleglobe submitted that the rates for the foreign half portion are not in the tariff as they are not subject to the Commission's jurisdiction.
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8.Teleglobe submitted that the current arrangement whereby Teleglobe has been billing AT&T Canada LDS' customers directly for the foreign half-circuit is a result of a goodwill gesture on its part arranged with the foreign end service provider. Teleglobe stated that this arrangement had now become problematic for these providers as well as for Teleglobe. Teleglobe submitted that the billing for the foreign half portion was always intended to be performed by Teleglobe's wholesale customer. Teleglobe also submitted that the majority of AT&T Canada LDS' customers preferred to be billed by a single supplier in Canada.
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9The Commission is of the view that based on the current and proposed tariff wording and the wording in the Agreement, Teleglobe's Globeframe service is an end-to-end service. Accordingly, the Commission considers it appropriate that Teleglobe bill AT&T Canada LDS, as Teleglobe's customer, for both the Canadian and the foreign half-circuits.
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10.The Commission is not persuaded that the proposed billing arrangement is contrary to the Agreement. The Commission notes that the Agreement provides that both parties will develop mutually agreed upon settlement procedures. In this case, it seems clear that the parties are unable to agree on such procedures. In these circumstances, it is appropriate that the matter should be resolved by the Commission.
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11.However, given that Teleglobe has been billing AT&T Canada LDS' customer to date, the Commission considers that AT&T Canada LDS should be given some time to adjust to Teleglobe's proposed billing arrangement. In the Commission's view, a six-month transition period would be appropriate.
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12.The proposed changes are therefore approved. However, in the case of AT&T Canada LDS, Teleglobe is to defer implementation of the billing arrangement for six months from the date of this Order, unless AT&T Canada LDS notifies Teleglobe, in writing, that it can accommodate the new billing arrangement earlier.
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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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