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ARCHIVED -  Telecom Order CRTC 99-644

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Telecom Order CRTC 99-644

 

Ottawa, 13 July 1999

  On 14 April 1999, Vidéotron Télécom (1998) ltée (VTL) filed an application for interim approval of tariff revisions related to the implementation of a per-minute regime for contribution on international traffic pursuant to Telecom Order CRTC 99-302, 31 March 1999 (Order 99-302).
  File No.: Tariff Notice 3
  1. In Order 99-302, the Commission directed the Competitive Local Exchange Carriers (CLECs) to (1) file proposed interim tariff revisions consistent with the Bell Canada (Bell) tariffs granted interim approval in the Order, specifying an effective date of 1 April 1999, or (2) show cause why such tariffs should not be put in place.
  2. VTL proposed to retain its existing definition of an Interexchange Carrier (IXC). VTL submitted that the definition of an IXC in Order 99-302 would incorrectly exclude Bell from the application of VTL’s tariffs. The Commission agrees with VTL.
  3. VTL objected to including provisions equivalent to those approved for Bell regarding contribution charges on Overseas Circuits and on Canada-U.S. Circuits. VTL submitted that, if all local exchange carriers (LECs) were to include such provisions, Class A licensees would be paying contribution charges as many times as there are LECs whose operating territories include international interconnection points or Canada-U.S. border crossing points.
  4. VTL also submitted that, since there are no Canada-U.S. border crossing points in its operating territory, including provisions related to contribution charges on Canada-U.S. Circuits would not serve a useful purpose.
  5. VTL proposed to include provisions in its tariff to permit a Class A licensee affiliated with VTL, or having a preferred relationship with VTL, operating Canada-U.S. Circuits or Overseas Circuits using a border crossing or an international interconnection point located in Bell’s operating territory, to remit its contribution payments to VTL.
  6. The Commission notes that the obligation under the Class A licence, reflected in Bell’s tariff, is to report and remit contribution to the relevant incumbent local exchange carrier (ILEC), or alternatively to a CLEC with which the licensee has a preferred relation. The Commission considers that VTL’s objections to including provisions equivalent to those approved for Bell regarding contribution charges on Overseas Circuits and Canada-U.S. Circuits are unfounded.
  7. The Commission also notes that the provisions in Bell’s tariff regarding the alternative form of contribution payment apply to Class A Licensees affiliated with any CLEC or having a preferred relationship with any CLEC. The Commission thus considers that VTL’s proposal to restrict this option to IXCs affiliated with VTL, or having a preferred relationship with VTL, is inconsistent with Order 99-302 and inappropriate in the circumstances.
  8. The Commission considers that VTL’s tariff should also reflect the conditions under which contribution exemptions are granted on Overseas Circuits and Canada-U.S. Circuits.
  9. The Commission moreover notes that the same contribution charges should apply whether an IXC interconnects on a line-side or trunk-side basis.
  10. In light of the above, the Commission orders that:
  1. The proposed tariff revisions are granted interim approval effective 1 April 1999, with the following modifications:
  (a) move the existing Item 302.2 to Item 302.4;
  (b) insert Item 302.2 regarding Overseas Circuits;
  (c) in Item 302.2 a), insert the following: "For each Overseas Circuit that uses an international interconnection point located in the applicable ILEC’s operating territory, the contribution charges specified in Item 302.1 a) apply. On a monthly basis, the Class A licensee will advise the applicable ILEC of the number of minutes of traffic, as well as the number of circuits measured, and will remit the applicable contribution payment to the applicable ILEC.";
  (d) in Item 302.2 b), insert the following: "As an alternative to a) above, the Class A licensee may choose to provide an itemized report, on a monthly basis, to an affiliated CLEC or a CLEC with which such a Class A licensee has a preferred relationship, as defined in the Central Fund Administration Agreement, of the contribution charges owing and remit the applicable contribution payment to that CLEC. When a Class A licensee elects to use this alternative reporting method, that Class A licensee must advise the applicable ILEC in writing of this choice, at least one month prior to the date the change becomes effective.";
  (e) delete existing Item 302.3 entitled "Class A licensees";
  (f) insert new Item 302.3 "Canada-U.S. Circuits". In Item 302.3 a) insert the following: "For each Canada-U.S. Circuit that crosses the border at a point located in the applicable ILEC’s operating territory, where the Class A licensee controls the routing of the traffic carried on the circuit, the contribution charges specified in Item 302.1 a) apply. On a monthly basis, the Class A licensee will advise the applicable ILEC of the number of minutes of traffic, as well as the number of circuits measured, and will remit the applicable contribution payment to the applicable ILEC.";
  (g) in Item 302.3 b), insert the following: "As an alternative to a) above, the Class A licensee may choose to provide an itemized report, on a monthly basis, to an affiliated CLEC or a CLEC with which such a Class A licensee has a preferred relationship, as defined in the Central Fund Administration Agreement, of the contribution charges owing and remit the applicable contribution payment to that CLEC. When a Class A licensee elects to use this alternative reporting method, that Class A licensee must advise the Company and the applicable ILEC in writing of this choice, at least one month prior to the date the change becomes effective.";
  (h) insert as the first paragraph under Item 302.4 b): "The contribution charges specified in paragraphs 1, 2 and 3 of this Item do not apply when an interconnecting circuit associated with line-side access is used to provide a dedicated voice or 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 the technical, economic or operational characteristics of the service, it is unlikely that the connections will be used significantly for joint-use interexchange services."; and
  (i) insert as the second paragraph under Item 302.4 b): "Likewise, the contribution charges specified in paragraphs 1, 2 and 3 of this Item do not apply, when a Canada-U.S. Circuit or an Overseas Circuit is used to provide dedicated voice, dedicated data, a joint-use data service, or 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 the technical, economic or operational characteristics of the service, it is unlikely that the connections will be used significantly for joint-use interexchange voice applications.".
  2. VTL is to issue forthwith revised tariff pages.
  Secretary General
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