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Telecom Public Notice CRTC 98-38
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Ottawa, 11 December 1998 |
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STENTOR - GUIDELINES FOR TARIFF FILINGS IN RESPECT OF CUSTOMER-SPECIFIC
ARRANGEMENTS
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File No.: 8622-S1-04/98 |
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1. On 10 September 1998, Stentor Resource
Centre Inc. (Stentor), on behalf of BC TEL, Bell Canada, Island Telecom
Inc., Maritime Tel & Tel Limited, MTS Communications Inc., NBTel Inc.,
NewTel Communications Inc. and TELUS Communications Inc. (collectively "the
Stentor companies"), submitted an application requesting the Commission to
issue a statement or guidelines, pursuant to section 58 of the
Telecommunications Act, as to the acceptability of certain options
related to filings for the approval of tariffs for Customer-Specific
Applications (CSAs). |
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2. In Telecom Decision CRTC
94-19, Review of
Regulatory Framework, 16 September 1994 (Decision
94-19), the Commission
confirmed the appropriateness of CSAs and prescribed certain broad
parameters applicable to them. Stentor indicated that since Decision
94-19, the need for
customer-specific features, terms and conditions has heightened, due to the
increase in competitive activity, large customers' needs for increasingly
sophisticated solutions and a trend towards tendering and contract pricing.
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3. Stentor noted that, in conformity with
Decision 94-19, the Stentor
companies have responded to large customer tenders by filing tariffs that
do not restrict the general availability of the service but rather make
prices dependent upon various explicit future conditions (such as traffic
volumes and service locations). This ensures that a customer in dissimilar
circumstances is not in a position to demand the same terms. |
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4. Stentor submitted that this process has
proven to be unworkable in certain procurement situations, typically
involving very large customers. Stentor indicated that certain large
customers are requiring, as a condition of tender, that any bids submitted
contain firm prices or be unconditional in nature in order to qualify for
acceptance by the customer. |
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5. Stentor submitted that a substantial
difference exists between the ability of an unregulated or "forborne"
bidder on the one hand and the Stentor companies on the other hand to
comply with the bidding process. Stentor noted that the unregulated and
forborne bidders develop their responses to these tenders on the basis of
their reasonable expectations of customer requirements, and submit bids,
including prices, which are unconditional and thus compliant with the call
for tender. The Stentor companies must file tariffs for their non-forborne
services, whereas their unregulated or forborne competitors are not
required to do so. |
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6. Stentor noted that if the current practice
continues in the future, the Stentor companies could effectively be
disqualified from procurement processes which require unconditional or firm
prices for non-forborne services. Stentor submitted that such a result is
neither required nor appropriate and could not have been intended. |
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7. Stentor submitted that different tariff
filing options must be adopted in the future, pending forbearance. Stentor
requested that the Commission issue a statement or guidelines confirming
that it will generally find acceptable CSA tariff applications which comply
with either of the following options: |
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(a) the application could set out conditions
necessary to qualify for the service where such conditions are based on
historical behaviour or circumstances (i.e. the tariff would express
characteristics as qualifying rather than prospective requirements); or
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(b) the application could otherwise set out
the reasonable expectations or assumptions (e.g., as to traffic volumes,
patterns and customer locations) on which the rates are based. |
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8. Stentor stated that under either option,
the application would be accompanied by a demonstration that the imputation
test is satisfied, and the tariff would only be made available to those
customers who satisfy the qualifying conditions or for whom the assumptions
or expectations are reasonably applicable and who request service within a
specific time period set out in the tariff application. |
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9. The Commission hereby initiates a
proceeding to seek comments on Stentor's application. |
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PROCEDURE |
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10. Stentor's application may be examined at
any of the company's business offices or at the offices of the CRTC in the
following locations: |
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Central Building
Les Terrasses de la Chaudière
1 Promenade du Portage
Room G-5
Hull, Quebec
Bank of Commerce Building
1809 Barrington Street
Suite 1007
Halifax, Nova Scotia
Place Montréal Trust
1800 McGill College Avenue
Suite 1920
Montréal, Quebec
55 St. Clair Avenue East,
Suite 624
Toronto, Ontario
275 Portage Avenue
Suite 1810
Winnipeg, Manitoba
580 Hornby Street
Suite 530
Vancouver, British Columbia |
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11. Other documents forming part of the record
of this proceeding may, as noted above, be examined at the Commission
office in Hull, or will be made available in the above Regional Offices
promptly upon request. |
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12. Copies of Stentor's application can also
be obtained by any interested person upon request directed to Mr. R.F.
Farmer, Vice-President, Regulatory Development & Management, Stentor
Resource Centre Inc., 105 Hôtel de Ville, Floor 5, Hull, Quebec, J8X 4H7. |
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13. Persons wishing to comment on the
application may do so by writing to the Secretary General, CRTC, Ottawa,
Ontario, K1A 0N2, fax: 819-953-0795, by 15 January 1999. A copy of your
comments should be served on Stentor at the above address. |
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14. Stentor may file reply comments by
29 January 1999, serving a copy on those persons who filed comments. |
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15. Documents must be received, and not merely
sent, by the dates indicated. |
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16. In addition to hard copy filings, parties
are encouraged to file with the Commission electronic versions of their
submissions in accordance with the Commission's Interim Telecom
Guidelines for the Handling of Machine-Readable Files, dated
30 November 1995. The Commission's Internet email address for
electronically filed documents is
public.telecom@crtc.gc.ca. Electronically filed documents can be
accessed at the Commission's Internet site at
www.crtc.gc.ca. |
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Secretary General |
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This document is available in alternative
format upon request. |