ARCHIVED -  Telecom Order CRTC 98-896

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Telecom Order

Ottawa, 8 September 1998
Telecom Order CRTC 98-896
By letter dated 28 January 1998, Toll Free Telecom (Toll Free) applied for exemption from contribution charges associated with account number 905-731-7006.
File No.: 8626-T29-01/98
1.Toll Free requested an effective date of 1 January 1998. In support of its request, Toll Free stated that "this centrex system is used by customer service to place local calls and receive calls. This centrex system consists of two Centrex locals with two PSTN [Connections] and in no way is used to place single hop or double hop calls".
2.By letter dated 2 March 1998, Bell Canada (Bell) noted that it appears that the services in question are used for administrative purposes. Further, Bell noted that Toll Free offers interexchange services to its customers. In this respect, Bell noted that pursuant to Telecom Order CRTC 97-590, 1 May 1997, effective 1 January 1998 contribution exemptions for administrative use may no longer be applicable. Bell stated that in cases where it is believed that an exemption should continue to apply, the reseller is required to provide evidence to demonstrate that the administrative circuits are stand-alone and are not directly connected to an interexchange network. Bell stated that use of an interexchange network for administrative traffic would include carriage of administrative traffic over a resold multiple-hop Centrex system configuration. Further, Bell stated that where a system does not operate on a stand-alone basis, there may be a requirement for a technical audit of the configuration to confirm that it is separate and partitioned from facilities used to carry interexchange voice traffic and other traffic which attracts contribution charges.
3.Bell submitted that should the Centrex system in question meet the criteria for a continued exemption, Toll Free should be required to provide appropriate evidence in the form of either an affidavit affirming the system configuration or a technical audit. Accordingly, Bell submitted that the Commission should defer rendering a decision with respect to the contribution status of the system pending the submission of further evidence from Toll Free.
4.By fax dated 11 June 1998, Toll Free included an affidavit which had not been sworn and notarized by a Commissioner of Oaths. By fax dated 9 July 1998, Toll Free included a revised affidavit which appeared to have been properly sworn and notarized.
5.By letter dated 17 July 1998, Bell noted that the second affidavit states that the Centrex system "...has always been a stand alone system used exclusively for administrative purposes, primarily to place and receive local calls by it's [sic] customer service department and is in no way used in any of TFT's [Toll Free's] interexchange network."
6.In light of the above, Bell submitted that Toll Free's affidavit appears to satisfy the evidentiary requirements with respect to this administrative exemption. Accordingly, Bell agreed with the requested exemption effective 1 January 1998.
7.The Commission is of the view that Toll Free has met the evidentiary requirements for exemption from contribution for administrative circuits and notes that Bell also agreed.
8.In light of the foregoing, Toll Free's application is approved effective 1 January 1998 such that no contribution is payable.
Laura M. Talbot-Allan
Secretary General
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