ARCHIVED -  Telecom Order CRTC 99-582

Telecom Order CRTC 99-582

Ottawa, 23 June 1999

On 15 December 1998, NOVUS Telecom Inc. (NOVUS) filed an application under Tariff Notice 1 for approval of its General Tariff (CRTC 21181). The application provided proposed General Tariff Terms and Conditions, as well as terms and conditions for the provision of Access Services for Interconnection with Local Exchange Carriers (LECs), Interexchange Carriers (IXCs) and Wireless Service Providers (WSPs), the provision of Digital Network Services and the provision of NOVUS 9-1-1 Emergency Response Service.

File No.: Tariff Notice 1

1. Comments were received from Bell Canada (Bell) on 26 January 1999 and from TELUS Communications Inc. (TCI), on behalf of itself and BC TEL, on 28 January 1999. NOVUS filed reply comments on 3 and 5 February 1999.

2. Bell submitted that NOVUS’ tariff requires additional definitions and identified various tariff items which, in its view, should be removed, changed or clarified. TCI agreed with Bell’s intervention and identified additional items that required changes or clarifications.

3. In its reply, NOVUS stated that it was generally prepared to amend its tariffs accordingly.

4. The Commission, in a letter dated 15 April 1999, directed the LECs to adopt equivalent provisions to those approved in Telecom Order CRTC 99-352, dated 15 April 1999, with respect to Compensation for Traffic Imbalances. The Commission notes that these directives would apply to NOVUS.

5. NOVUS proposed to offer DS-0 service using diverse and route avoidance DS-1 service. The tariff includes service charges for both Inward and Change Orders. NOVUS proposed to set the Inward Order service charge at $100.00 more than the Inward Order service charge to provide a DS-0 within the same DS-1.

6. Bell submitted that the service charge for the Inward Order for a DS-0 using diverse and route avoidance should be the same as that for a DS-0 set within the same DS-1.

7. The Commission is of the view that this service does not fall within the scope of services for which tariffs are required per Local Competition, Telecom Decision CRTC 97-8, 1 May 1997 (Decision 97-8).

8. Bell submitted that NOVUS evidently intends to provide interexchange services as well as local services, but has not included terms and conditions by which a new integrated carrier would recover contribution from itself. Bell further submitted that NOVUS has not indicated whether it intends to define its local exchange boundaries consistent with those of the Incumbent Local Exchange Carrier (ILEC).

9. In its response, NOVUS stated that it intends to use the ILEC boundaries for the purpose of providing local exchange service and to replicate the local calling areas of the ILECs.

10. The Commission agrees with Bell that NOVUS requires terms and conditions which would address the collection of contribution charges from itself with respect to interexchange services.

11. TCI noted that NOVUS has not reflected the most recent contribution charges for Alberta approved by the Commission. The Commission agrees with TCI that the tariff should reflect the approved contribution rates and notes that NOVUS stated that it was prepared to do this.

12. In Telecom Order CRTC 99-302 dated 31 March 1999 (Order 99-302), the Commission, among other things, amended the definitions of Competitive Local Exchange Carrier (CLEC), IXC and Overseas Circuit. The Commission also approved tariff wording pertaining to the collection of contribution for Overseas Circuits and Canada-U.S. Circuits on a per minute basis. The Commission directed the CLECs specifically noted in the Order to (1) file proposed interim tariff revisions consistent with those granted interim approval in the 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. The Commission considers that the determinations of Order 99-302 should apply to NOVUS and that NOVUS should either adopt the applicable wording on a going forward basis or to show cause why it should not.

13. NOVUS indicated that it will not be offering line-side access to WSPs at this time. The Commission is of the view that NOVUS would not be able to restrict a WSP from obtaining the facilities to provide service on a line-side basis. The Commission considers that NOVUS should amend the terms and conditions of its tariff accordingly.

14. TCI, in reference to a note in NOVUS’ tariff which specifies that "the surcharge is referred to as an IX Contribution Charge and applies to each activated toll access channel leased to Cellular System Operators and other Wireless Service Providers", submitted that NOVUS needs to define "toll access channel" clearly to ensure appropriate collection of contribution charges.

15. NOVUS stated that this term appears in the tariffs of several companies, which have received approval from the Commission. NOVUS submitted that the term has not previously been defined in industry documents and believes that it does not require a definition. NOVUS stated that if the Commission has an approved definition, NOVUS will include it in its tariff.

16. The Commission considers that given that this note is found in other approved tariffs, amendments to NOVUS’ tariff further to TCI’s intervention are not required.

17. NOVUS stated in its covering letter that Interconnection Trunk Termination Service per DS-1 is only offered by Bell, but that it proposes to levy the charge in each of its operating territories. The Commission notes that the Interconnection Trunk Termination charge per DS-1 is levied only in the operating territory of Bell and is associated with trunk-side access. In Bell’s territory, a Link charge applies when interconnection is provided on a line-side basis. In BC TEL’s and TCI’s territory, the Link charge applies whether interconnection is provided on a line-side or a trunk-side basis. NOVUS, in its tariff, has provided comparable Link charges to the ILEC tariffs, but has indicated that the charges apply to each channel for line-side access.

18. The Commission considers that NOVUS’ proposal to apply the Bell Interconnection Trunk Termination per DS-1 in BC TEL’s and TCI’s operating territories is acceptable and consistent with the determinations of Decision 97-8. The Commission notes the customer would either pay Link charges when interconnecting on a line-side basis or Interconnection Trunk Termination charges when interconnecting on a trunk-side basis.

19. The Commission notes that proposed tariffs for several of NOVUS’ services in its Access Tariff for Wireless Service Providers have also been filed by ILECs. These services include charges for Central Office (CO) Code Administration, CO Code Transfer and Industry Notification. The Commission will address these items upon consideration of the ILECs’ proposed tariffs. NOVUS’ proposal to adopt Bell’s proposed monthly charge for 1000 Block Routing will be similarly dealt with.

20. The Commission notes that the proposed monthly rate for each seven-digit telephone number with outpulsing and the service charge related to reserved seven-digit telephone numbers with outpulsing for services provided in British Columbia are higher than BC TEL’s tariffed rates. The Commission considers that, consistent with Decision 97-8, these rates should be no higher than those charged by BC TEL.

21. The Commission considers that NOVUS’ Tariff Item 500, Digital Network Services, is a service which does not require Commission approval pursuant to Decision 97-8.

22. Bell and TCI submitted that the word "NOVUS" in Item 501.4(a)(iii) of its tariff would only be appropriate if NOVUS intends to become a 9-1-1 service provider. NOVUS, in response, indicated that it does not intend to operate as a 9-1-1 service provider and indicated that it was prepared to amend the terms accordingly.

23. The Commission considers that, in addition to the above, various changes and/or corrections to NOVUS’ tariff are required to clarify various provisions and to ensure consistency with the approved ILEC and CLEC tariffs.

24. With respect to the Terms of Service, the Commission considers that various provisions, which would more appropriately be included in the specific interconnection tariffs, are to be deleted.

25. The Commission considers that cross-references to NOVUS’ interexchange services should be deleted as these services are not regulated pursuant to Decision 97-8.

26. In light of the foregoing:

(A) The Commission approves the revisions proposed under Tariff Notice 1 on an interim basis with the amendments set out below, with the exception of Tariff Items 402.3(a) CO Code Administration, 402.3(b) CO Code Transfer, 402.3(c) Industry Notification and the monthly charge for 402.3(d) 1000 Block Routing for which determinations are deferred until the Commission has rendered its determination with respect to the ILECs’ proposals for these services.

1) Terms of Service:

a) In Item 101, replace paragraphs 1(a) and 1(b) with the following:

1(a) Except as otherwise specified, these Terms apply with regard to all services, facilities and interconnection arrangements provided by NOVUS to its customers. For greater certainty, these Terms do not apply to services and facilities provided by NOVUS to its end customers.

1(b) These Terms do not limit NOVUS’ liability in cases of deliberate fault or gross negligence, or of breach of contract where the breach results from the gross negligence of NOVUS.

1(c) Tariffed services and facilities, offered by NOVUS, are subject to the terms and conditions contained in:

(i) these Terms;

(ii) applicable provisions of NOVUS’ Tariffs; and

(iii) any written agreements, including interconnection agreements, to the extent that they are not inconsistent with these Terms or the Tariffs and have been approved by the Canadian Radio-television and Telecommunications Commission ("CRTC").

All of the above bind both NOVUS and its Customers.

b) Replace Item 101, paragraphs 1(c) and 1(d) with the following:

Article 2 - Effective Date of Changes

2(a) Subject to paragraph 2(b), changes to these Terms or the Tariff, as approved by the CRTC, take effect on their effective date even though applicants or Customers have not been notified of them or have paid or been billed at the old rate.

2(b) The old non-recurring charges for the transaction in question apply where service that was to be provided by a certain agreed-upon date was not provided, through no fault of the applicant or Customer, and, in the meantime, a rate increase has gone into effect.

Renumber the subsequent Articles accordingly.

c) Add the following additional term under the current Article 2:

2(b) Where NOVUS does not provide service on application, it must provide the applicant with a written explanation upon request and may also be viewed at the following Internet site: www.crtc.gc.ca

d) Add the following term to the end of Item 101, paragraph 4(a): "except where NOVUS has stipulated a longer period in instances in which special construction is necessary or special assemblies are installed".

e) Delete Item 101, paragraph 5(c).

f) Add the following term to Item 101, Article 6:

6(c) An applicant or a customer may provide an alternative to a deposit if such alternative is reasonable in the circumstances.

Renumber the subsequent paragraphs accordingly.

g) Amend Item 101, paragraph 7(d) to also reference paragraph 7(b).

h) Delete Item 101, paragraph 9(a), which describes suspension of service. Amend paragraph 9(e)(iii) to reference paragraph 5(f).

i) Delete Item 101, paragraph 10(c), relating to NOVUS’ liability from Article 10 and include it in Article 14. Amend the reference to paragraph 10(c) in paragraph 10(a) accordingly. Delete paragraph 10(b) relating to NOVUS’ liability.

j) Add the following term to Item 101, Article 11.

11(c) NOVUS’ liability for disclosure of information contrary to Paragraph 11(b) is not limited by Paragraph 14(b).

Move the current paragraph 11(c), with respect to restrictions on customer assignment, to Article 15 - Assignment, paragraph 15.1.

k) Delete Item 101, Article 13, with respect to Customer Liability.

l) Delete paragraphs 14(a), 14(d) and 14(e). Renumber Articles and references accordingly.

2) Access Services Tariff for Interconnection with Local Exchange Carriers:

a) Item 200, Article 1, replace the phrase "in the ILEC’s directories and LEC’s directory assistance databases" with "in a LEC’s directories and directory assistance databases".

b) With respect to Item 201 - Compensation for Traffic Imbalances, replace the current provisions with the following:

1. Traffic imbalances may occur for traffic that is exchanged between a competitive local exchange carrier (CLEC) and the Company and terminated within the same exchange. Commencing six months after commercial launch, once an imbalance is detected for three consecutive months on specific trunk group(s), the Company will notify the CLEC of the imbalance. The monthly rates will be applied on the basis of actual traffic imbalances from the date of notification for as long as an imbalance exists. Billing would commence from the date of notification.

2. The Company will notify the CLEC when an imbalance is detected in the Company’s favour. The monthly rates specified below apply, for each trunk required at the busiest hour of the month, on the basis of actual traffic imbalances from the date of notification of the imbalance, for as long as the imbalance exists.

3) Access Services Tariff for Interconnection with Interexchange Carriers:

a) Add the following definitions to Item 300:

Overseas Circuit: means a circuit that 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.

Sharing: means the use by two or more persons, in an arrangement not involving resale, of a telecommunications service leased from an IXC or NOVUS.

Sharing Group: means a group of persons engaged in sharing.

Class A Licensee: means a telecommunications service provider who operates telecommunications facilities whether owned by the service provider or leased by the service provider from a separate facilities provider, which are used in transporting basic telecommunications service traffic between Canada and another country. Such telecommunications service provider shall have obtained a Class A license for the provision of basic international telecommunications services from the CRTC. For more information refer to Telecom Decision CRTC 98-17, Attachments 1 and 2.

b) Amend the definition for "Feature Group D (FGD)" to include 0+, 00-, 10XXX, 01+, or 011+ dialling. Add the following phrase to the definition for "Interexchange Carrier": "which provides interexchange services".

c) In Item 301, paragraph 1(b) replace the phrase "at least one suitable equipped point of interconnect in each exchange in which it operates for IXCs" with the phrase "at least one suitably equipped point of interconnection in each exchange in which it operates".

d) Delete Item 301, paragraph 1(g) with respect to NOVUS’ interexchange service.

e) Renumber the current paragraph 1(m) as 1(n) and add to Item 301, Article 1 the following paragraphs:

1(m) The IXC’s traffic may not be aggregated or terminated using the switched services of a reseller or a sharing group or another IXC if the contribution charges applicable to the reseller or sharing group or the other IXC are less than those applicable to the IXC.

1(o) Together with its registration, an IXC shall file with the Commission a full description of its network, including information regarding the extent of owned and leased transmission facilities, and shall notify NOVUS of such filing.

g) Amend Item 301, paragraph 2(e) to include the following wording at the end of the last sentence in the paragraph "which shall not unreasonably be withheld."

h) Amend Item 301, paragraph 2(f) as follows: "The IXC will provide NOVUS with not less than six (6) months advance notice of the changes equivalent to those noted in Paragraph 2(c) above".

i) Add the following sentence to Item 301, paragraph 4(b): "In cases of such discontinuance, the IXC will be promptly notified and afforded the opportunity to correct the condition which gave rise to the temporary discontinuance".

j) Replace Item 301, paragraph 4(c), with the following: "During any period of temporary discontinuance of service caused by a trouble or condition arising in the IXC’s operations, facilities or network, no refund for interruption of service, as set forth in NOVUS’ Terms of Service, shall be made".

k) Delete Item 302, Article 1(d). Delete the first sentence in paragraph 1(e) as it refers to Article 1(d).

l) Delete Item 302, paragraph 1(e)(ii), Charges for DS-0 using diverse and route avoidance DS-1.

m) Delete Item 302, paragraph 1(f)(iii), One-Time Service Charge.

n) Replace the phrase "it will file a Special Assembly Contract reflecting an amount" in Item 302, paragraph 1(g) with the phrase "the IXC will pay an additional charge".

o) Delete Item 302, paragraph 3(d) pertaining to NOVUS’ collection of switching and aggregation charges from itself in relation to the provision of IX service.

p) Amend the switching and aggregation charges based on conversation minutes for Alberta as follows:

Direct Connection: $0.007505

Access Tandem Connection: $0.004486

q) Delete Item 302, paragraph 3(f), pertaining to 800/888 carrier identification charge.

r) Amend Item 305, with respect to Contribution Rates, to reflect the current contribution rates for Alberta.

s) In Item 305, add terms and conditions to provide for the collection of contribution charges from NOVUS in relation to the provision of interexchange services.

t) Replace Item 305, paragraph 5(b) with the following:

The contribution charges specified in paragraphs 1 and 2 of this Item do not apply when an interconnecting circuit associated with line-side access is used to provide a dedicated voice service, dedicated data service or a local service or is associated with a stand-alone administrative location or system which is not directly connected to the IXC’s interexchange network, provided that the IXC applies to the Commission on a case-by-case basis and provides evidence satisfactory to the Commission that by reasons of technical, economic or operational characteristics of the service, it is unlikely that the connections will be used significantly for joint-use interexchange services.

The contribution charges specified in paragraphs 3 and 4 of this Item do not apply when a Canada-U.S. Circuit or an Overseas Circuit is used to provide a dedicated voice service, dedicated data service or a joint-use data service or is used to provide an international transit service not connected to the Canadian PSTN, or is unused and not connected for service, provided that the IXC applies to the Commission on a case-by-case basis and provides evidence satisfactory to the Commission that by reasons of technical, economic or operational characteristics of the service, it is unlikely that the connections will be used significantly for joint-use interexchange services.

u) Amend Item 305, paragraph 5(c) with respect to circuits used by resellers.

4) Access Services for Interconnection with Wireless Service Providers:

a) In Item 401, paragraph (c) the phrase "on a trunk-side basis" is to be deleted.

b) Delete Item 402, paragraph 2(ii).

c) In Item 402, paragraph 2(e), amend, for the province of British Columbia, the monthly rate for each seven-digit telephone number with outpulsing to be no higher than $0.14 and delete the service charge for reserved seven-digit telephone numbers with outpulsing.

5) General Tariff Services:

a) Delete Tariff Item 500, Digital Network Services.

b) Replace the reference to "NOVUS" with "9-1-1 service provider" in tariff item 501.4(a)(iii).

(B) NOVUS is directed to amend Item 305, paragraphs 3(a), 4(a) and 5(c) to reflect the determinations of Order 99-302 on a going forward basis or to show cause why the determinations should not apply.

(C) NOVUS is directed to file its PIC/CARE Handbook with the Commission for approval.

(D) NOVUS is to issue revised tariff pages forthwith incorporating the changes set out above.

Secretary General

This document is available in alternative format upon request and may also be viewed at the following Internet site: www.crtc.gc.ca