ARCHIVED -  Telecom Order CRTC 99-302

Telecom Order

Ottawa, 31 March 1999

Telecom Order CRTC 99-302

On 26 February 1999, Bell Canada (Bell) filed under Tariff Notice (TN) 6332 an application for approval of revisions to its Access Services Tariff for Interconnection with Interexchange Carriers (IXCs) and its General Tariff as it pertains to resale and sharing. On 17 March 1999, Bell filed under TN 6336 an application for further revisions to these tariffs.

File Nos.: TNs 6332 and 6336

1.Bell requested expedited approval of TN 6332 on a going-forward basis, as well as ratification of the proposed tariffs as of 1 January 1999.

2.Bell stated that the revisions proposed in TN 6332 reflect changes to the contribution collection process for Overseas and Canada-U.S. circuits, and are intended to harmonize its tariffs with the licensing regime established in Regulatory Regime for the Provision of International Telecommunications Services, Telecom Decision CRTC 98-17, 1 October 1998 (Decision 98-17).

3.The Commission received comments on TN 6332 from AT&T Canada Corp., Call-Net Enterprises Inc. (Call-Net), London Telecom Network Inc. (London Telecom) and Vidéotron Télécom ltée, as well as a joint submission from Maritime Tel & Tel Limited and Island Telecom Inc.

4.Bell filed a reply to these comments on 17 March 1999.

5.Bell indicated that the revisions filed under TN 6336 reflect changes to the contribution regime to begin collecting contribution charges on international traffic on a per-minute basis, effective 1 April 1999.

6.Bell stated among other things that, notwithstanding TN 6336, many important issues related to the reporting of contribution which is to commence on 1 April 1999 will not be resolved until the completion of the industry task force process outlined in a letter issued by the Commission on 5 March 1999. Bell therefore requested that the Commission defer the implementation of the per-minute contribution-reporting regime for international traffic until the third quarter of 1999, after the completion of the process initiated on 5 March 1999.

7.Should the Commission determine that the 1 April 1999 effective date should proceed, Bell requested an expedited process to deal with its proposed per-minute revisions, so that approved tariffs could be in place for that date. Given that further changes may ultimately be required, Bell requested interim approval of the revisions proposed under TN 6336.

8.On 24 March 1999, Call-Net filed comments with regard to TN 6336 and Bell's request for the deferral of implementation of the per-minute regime.

9.The Commission denies Bell's request for a deferral of implementation of the per-minute contribution regime. The Commission considers that this request constitutes a request that the Commission review and vary Decision 98-17. The Commission would not consider it appropriate to grant such a request without a full opportunity for interested parties to comment. The Commission also notes the difficulty in providing that opportunity, given that Bell's application was filed on 17 March 1999, and the per-minute regime is scheduled to go into effect on 1 April 1999.

10.As indicated below, the Commission is granting interim approval to TN 6336, subject to certain changes. The Commission anticipates that further changes to the tariffs, effective 1 April 1999, may be required once the proceeding initiated in its letter of 5 March 1999 is complete. The Commission also notes that the CRTC Telecommunications Rules of Procedure (the Rules) provide for a 30 day comment period with regard to TN 6336. The Commission notes that comments filed pursuant to the Rules may lead the Commission to conclude that certain changes to the tariffs are required on an interim basis prior to the completion of the proceeding initiated on 5 March 1999.

11.As noted above, Bell requested expedited approval of TN 6332 on a going-forward basis, as well as ratification of the proposed tariffs effective 1 January 1999.

12.The Commission notes that section 25(4) of the Telecommunications Act (the Act) specifies that it may ratify the charging of a rate by a Canadian carrier otherwise than in accordance with an approved tariff if the Commission is satisfied that the rate was charged because of an error or other circumstance that warrants ratification.

13.The Commission notes that section 25(4) of the Act refers to the ratifying of "the charging of a rate" and not to the ratifying of "tariffs". Therefore, the Commission considers that it cannot ratify a tariff pursuant to section 25(4) of the Act, but can only ratify instances where Bell has charged a rate other than in accordance with the approved tariffs that were actually in place from 1 January 1999 to the date of either interim or final approval of revised tariffs.

14.Given that it is unable to ratify TN 6332 effective 1 January 1999, the Commission denies the tariff revisions proposed in that TN. The Commission notes that, if approved, such tariffs would only have been in effect until 1 April 1999.

15.In a related letter to London Telecom, also dated 31 March 1999, the Commission is addressing the reporting and remitting of contribution by Class A licensees in accordance with the licence regime established in Decision 98-17.

16.Bell stated in reply that its Carrier Services Department has continued to invoice contribution charges to all of its customers based on the pre-1999 regime, except where a customer notified Bell of its intention to implement the contribution reporting provisions of the licensing regime established in Decision 98-17.

17.The Commission considers that the circumstances warrant the ratification of instances where Bell charged a contribution rate to certain Class A licensees other than in accordance with the approved tariff, including instances where, in accordance with the licensing regime established in Decision 98-17, the contribution rate charged to certain Class A licensees was zero.

18.In connection with both TN 6332 and TN 6336, Bell submitted that there is a need for the Commission to provide direction to other carriers whose tariffs are affected by Decision 98-17 in a similar manner. The Commission agrees. In order to ensure that any required changes to the tariffs of other carriers can be made effective 1 April 1999, the Commission is making interim its approval of all provisions relating to contribution in the tariffs of BC TEL, Island Telecom Inc., Maritime Tel & Tel Limited, MTS Communications Inc., NBTel Inc., NewTel Communications Inc., TELUS Communications Inc. and TELUS Communications (Edmonton) Inc. The Commission notes that the contribution rates prescribed in these tariffs were made interim effective 1 January 1999, by letter dated 21 December 1998 issued in connection with the proceeding to review the frozen contribution rate policy.

19.The Commission notes that the tariffs of Competitive Local Exchange Carriers (CLECs) also contain provisions relating to contribution. While tariffs filed by CLECs have been granted interim approval, none has been granted final approval.

20.In light of the foregoing:

(a) The Commission denies TN 6332.

(b) The Commission ratifies Bell's charging of contribution other than in accordance with the approved tariffs, as described in Paragraph 17 above.

(c) The Commission denies Bell's request that it defer implementation of the per-minute contribution regime established in Decision 98-17.

(d) The Commission grants interim approval to TN 6336, effective 1 April 1999, subject to the changes noted below.

(i) The definition of Competitive Local Exchange Carrier is amended to read as follows:

Competitive Local Exchange Carrier (CLEC) means a Canadian Carrier as defined in section 2 of the Telecommunications Act, recognized as a CLEC by the CRTC pursuant to Telecom Decision CRTC 97-8.

(ii) The definition of Interexchange carrier is amended to read as follows:

Interexchange Carrier (IXC) means a Canadian carrier, as defined in section 2 of the Telecommunications Act, that provides interexchange service in competition with one of the Canadian Carriers identified in the Title Page of the National Services Tariff.

(iii) The definition of Overseas Circuit is amended to read as follows:

Overseas Circuit means a circuit which connects a service or a facility of a Class A Licensee to a country other than the United States, directly or via an Overseas Carrier, for the purpose of providing overseas services, where the Class A licensee controls the routing of the traffic carried on the circuit.

(iv) Item 50.2(a) of the Access Services Tariff for Interconnection with IXCs is amended to read as follows:

For each Overseas Circuit that uses an international interconnection point located in the Company's operating territory, the contribution charges specified in Item 50.1(a) above apply. On a monthly basis, the Class A licensee will advise the Company of the number of minutes of traffic, as well as the number of circuits measured, and will remit the applicable contribution payment to the Company.

(v) Item 24.4(b)(1) of the General Tariff pertaining to resale and sharing is also amended as indicated immediately above.

(vi) Item 50.3(a) of the Access Services Tariff for Interconnection with IXCs is amended to read as follows:

For each Canada-U.S. circuit that crosses the border at a point located in the Company's operating territory, where the Class A licensee controls the routing of the traffic carried on the circuit, the monthly contribution charges specified in Item 50.1(a) above apply. On a monthly basis, the Class A licensee using the circuit will advise the Company of the number of minutes of traffic, as well as the number of circuits measured, and will remit the applicable contribution payment to the Company.

(vii) Item 24.4 (c)(1) of the General Tariff pertaining to resale and sharing is also amended as indicated immediately above.

(e) Effective immediately, the Commission makes interim its approval of provisions related to contribution in the tariffs of BC TEL, Island Telecom Inc., Maritime Tel & Tel Limited, MTS Communications Inc., NBTel Inc., NewTel Communications Inc., Telesat Canada, TELUS Communications Inc. and, TELUS Communications (Edmonton) Inc.

(f) By 15 April 1999, the companies noted above and CLECs are directed to (1) file proposed interim tariff revisions consistent with those granted interim approval in this Order and indicating an effective date of 1 April 1999, or (2) show cause why such tariffs should not be put in place on an interim basis.

Secretary General

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