Telecom Public Notice CRTC 98-40
||Ottawa, 17 December 1998
TELESAT CANADA - TRANSITIONAL REGULATORY FRAMEWORK
||File No.: 8085-RP0008/98
||1. Telesat Canada (Telesat) filed an
application, dated 13 March 1998, which requested complete and
unconditional forbearance from the regulation of RF Channel services
provided using Fixed Satellite Service (FSS) facilities, effective 1 March
2000. Telesat's FSS satellites are Anik E1, E2 and C1, as well as the
planned F1 and F2 and possible future FSS satellites. The Commission
currently regulates RF Channel services over a ten-year study period, which
extends to 31 December 2000. Telesat's application was made in light of the
World Trade Organization/General Agreement on Trade in Services (WTO/GATS)
Trade Agreement for Basic Telecommunications Services by which Canada
committed to permit competition in the provision of RF Channel services
starting 1 March 2000.
||2. The Commission considered Telesat's
application in the proceeding initiated by Telesat Canada - Forbearance
Application for RF Channel Services, Telecom Public Notice CRTC
98-8, dated 4 May 1998. In Telesat Canada -
Forbearance from the Regulation of RF Channel Services, Telecom
Decision CRTC, 98-24 dated
17 December 1998, the Commission concluded that adequate evidence had not
been provided to demonstrate that competition would be sufficient to
protect the interests of satellite users. Accordingly, the Commission
denied Telesat's application for forbearance.
||3. The Commission determined that a
transitional regime for the regulation of RF Channel services provided on
FSS facilities is required to provide Telesat with flexibility to compete
where competition develops, but retains a degree of regulatory oversight
since RF Channel users may not have sufficient competitive choice.
||4. The Commission considers that a price
ceiling approach may be the best means to provide regulatory flexibility
prior to forbearance. The Commission has used price regulation in other
cases where competition is developing and the incumbent service provider
requires flexibility to adjust to a competitive market.
||5. The Commission considers that it would be
appropriate for any price ceiling framework to become effective immediately
following a determination in the proceeding initiated by this Public Notice
for services to be provided after 1 March 2000.
||6. The Commission is of the view that the
currently approved RF Channel rates may be an appropriate price ceiling.
Alternatively, the price ceiling could be a percentage difference from the
existing rates. The Commission is open to considering a price ceiling level
that can be justified based on factors such as market conditions, value of
service or other considerations.
||7. Telesat is made a party to this proceeding.
Other parties wishing to participate in this proceeding must notify the
Commission of their intention to do so by writing to the Secretary General,
CRTC, Ottawa, Ontario, K1A 0N2, Fax: (819) 953-0795, by 6 January 1999.
||8. The record of this proceeding may be
examined at the Commission's offices at the following locations:
Les Terrasses de la Chaudière
1 Promenade du Portage
55 St. Clair Avenue East
||9. Telesat is to file a submission proposing a
price ceiling framework including a price ceiling level. In addition,
Telesat is to propose how the Commission should oversee the priority of
access to satellite capacity where there is contention among customers. It
is noted that the Commission cannot forbear from its responsibilities for
the allocation of satellite capacity for the transmission of broadcasting
services pursuant to section 28 of the Telecommunications Act.
Telesat's submission is to be filed by 15 February 1999, or earlier,
serving a copy on interested parties by the same date.
||10. Parties other than Telesat may provide
submissions with respect to the price ceiling framework and how the
Commission should oversee priority of access within 20 days of the date of
service of Telesat's submission, serving a copy on all other interested
parties by the same date.
||11. Telesat may provide reply comments within
40 days of its initial submission in this proceeding, serving a copy on
interested parties by the same date.
||12. 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
firstname.lastname@example.org. Electronically filed documents can be
accessed at the Commission's Internet site at
||13. Where a document is to be filed or served
by a specific date, the document must be actually received, not merely
sent, by that date.
||This document is available in alternative
format upon request.