Telecom Public Notice CRTC 99-27
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Ottawa, 23 December 1999
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Québec-Téléphone and Télébec ltée – 1999 Contribution rates
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File No.: 8695-C12-10/99
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I Background
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1. In Telecom Order CRTC 98-1238, dated 9 December 1998, the Commission approved an interim 1999 contribution rate of $0.0398 for Québec-Téléphone. In Telecom Order CRTC 98-1337, 23 December 1998, the Commission approved an interim 1999 contribution rate of $0.0488 for Télébec ltée (Télébec).
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2. In Telecom Order CRTC 99-942, 30 September 1999 (Order 99-942), the Commission finalized the 1998 contribution rates for Québec-Téléphone and Télébec.
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3. The Commission hereby initiates a proceeding to finalize the 1999 contribution rates for Québec-Téléphone and Télébec.
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II 1999 Contribution rates
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A Treatment of 1998 excess earnings
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4. In Order 99-942, the Commission directed Québec-Téléphone and Télébec to accumulate any 1998 excess earnings in a deferral account. The Commission also indicated that the disposition of the excess earnings would be addressed in the proceeding to finalize the 1999 contribution rates.
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5. Québec-Téléphone and Télébec are directed to file, if applicable, proposals for the disposition of any 1998 excess earnings, with supporting arguments.
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B International contribution
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6. In Regulatory regime for the provision of international telecommunications services, Telecom Decision CRTC 98-17, 1 October 1998, the Commission established a licensing regime for carriers that transport international traffic over facilities operated by the licensee. As a condition of licence, a Class A licensee is required to report and remit contribution to the central fund administrator through the relevant local exchange carrier.
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7. The Commission notes that Québec-Téléphone obtained an international Class A licence and is not a party to any of the current central fund administrator agreements. This situation raises a question regarding the equity and consistency of the international contribution regime should Québec-Téléphone carry international traffic.
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8. Accordingly, the Commission directs Québec-Téléphone to provide comments, with supporting evidence, on the process and mechanism needed to ensure that the appropriate contribution charges are applied to the international traffic carried by Québec-Téléphone and to ensure that its contribution regime reflects any necessary changes to account for the international minutes and associated contribution revenues.
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C Capping the contribution requirement
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9. In Review of contribution regime of independent telephone companies in Ontario and Quebec, Telecom Decision CRTC 99-5, 21 April 1999 (Decision 99-5), the Commission capped the contribution requirement, at the previous year's approved level, for the members of l'Association des compagnies de téléphone du Québec/Société d'administration des tarifs d'accès des télécommunicateurs, the Canadian Alliance of Publicly-Owned Telecommunications Systems and the Ontario Telephone Association.
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10. Québec-Téléphone and Télébec are directed to show cause as to why their contribution requirements should not be capped at their approved 1999 levels.
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D Required information to finalize the 1999 contribution rates
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11. Québec-Téléphone and Télébec are directed to file their forecast 1999 split rate base results. The companies are also directed to include explanations, with supporting data, for any significant impact resulting from modifications to the split rate base methodology, or from variances in revenue, investment or expenses over the most current 1998 split rate base results.
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12. Québec-Téléphone and Télébec are also to file proposed final 1999 contribution rates. These proposed rates are to be based on the companies' forecast contribution requirements reflected in their 1999 forecast split rate base results and forecasts of 1999 minutes for contribution-eligible services as defined in Regulatory framework for Québec-Téléphone and Télébec ltée, Telecom Decision CRTC 96-5, 7 August 1996 (Decision 96-5).
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13. The Commission directs AT&T Canada Corp. (AT&T Canada) and Sprint Canada Inc./Call-Net Enterprises Inc. (Call-Net) (the interconnecting carriers), who originate or terminate contribution-eligible traffic in the territories of Québec-Téléphone and/or Télébec, to file for each company, their forecast 1999 contribution-eligible minutes as defined in Decision 96-5.
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14. On 23 December 1999, under separate cover of letter, the Commission addressed interrogatories relating to the issues in this public notice to Québec-Téléphone, Télébec and the interconnecting carriers.
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III Interim 2000 contribution rates
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15. Québec-Téléphone and Télébec are directed to file for approval, by 1 February 2000, their respective proposed interim 2000 contribution rates. These proposed rates are to be based on the companies' forecast contribution requirements reflected in their 2000 forecast split rate base results and forecasts of contribution-eligible minutes for 2000.
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IV Procedure
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16. Québec-Téléphone and Télébec are made parties to this proceeding. AT&T Canada and Call-Net are also made parties to this proceeding.
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17. Other interested parties wishing to participate in this proceeding must notify the Commission of their intention to do so by writing to Secretary General, CRTC, Ottawa, Ontario, K1A 0N2, Fax: (819) 953-0795, by 7 January 2000. Parties are to indicate in the notice their e-mail address, if available. If parties do not have access to e-mail, they are to indicate in their notice whether they wish to receive disk versions of hard copy filings. The Commission will issue a complete list of parties and their mailing addresses (including e-mail addresses, if available), identifying those parties who wish to receive disk versions.
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18. Québec-Téléphone, Télébec and the interconnecting carriers are to file the information indicated in Part II of this public notice, serving copies on all parties, by 1 February 2000.
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19. By 1 February 2000, Québec-Téléphone and Télébec are directed to file proposed tariff pages setting out their proposed contribution rates for 1999. Underlying calculations are to be provided by the same date.
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20. Those parties to whom the Commission has addressed interrogatories, as noted in Part II, are directed to file responses, serving copies on all parties, by 1 February 2000.
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21. Parties may file requests with the Commission for public disclosure of information for which confidentiality has been claimed, setting out the reasons for disclosure, by 8 February 2000, serving the party or parties asserting confidentiality.
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22. Replies to requests for public disclosure are to be filed with the Commission and served on the party or parties making the request by 15 February 2000.
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23. The Commission will issue a determination with respect to any requests filed pursuant to paragraph 21 as soon as possible. The Commission intends to direct that any information to be disclosed pursuant to its determination be placed on the public record and served on all parties by 7 March 2000.
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24. Any party may address interrogatories to any party who files information pursuant to paragraph 20. Any such interrogatories must be filed with the Commission and served on the party or parties in question by 14 March 2000.
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25. Responses to interrogatories addressed pursuant to paragraph 24 are to be filed with the Commission and served on all parties by 4 April 2000.
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26. Requests by parties for further responses to their interrogatories, specifying in each case why a further response is both relevant and necessary, and requests for public disclosure of information for which confidentiality has been claimed, setting out the reasons for disclosure, must be filed with the Commission and served on the party or parties in question by 11 April 2000.
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27. Replies to requests for further responses to interrogatories and for public disclosure must be filed with the Commission and served on the party making the request by 18 April 2000.
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28. The Commission will make a determination with respect to requests for disclosure and for further responses as soon as possible. The Commission intends to direct that any information to be filed or disclosed pursuant to its determination be filed with the Commission and served on all parties by 9 May 2000.
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29. All parties may file comments with the Commission on any matter raised in this proceeding, serving copies on all other parties, by 23 May 2000.
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30. Québec-Téléphone and Télébec may file reply comments, serving copies on all parties, by 6 June 2000.
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31. Where a document is to be filed or served by a specific date, the document must be actually received, not merely mailed, by that date.
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32. 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 e-mail address for electronically filed documents is procedure.telecom@crtc.gc.ca. Electronically filed documents can be accessed at the Commission's Internet site at http://www.crtc.gc.ca
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Secretary General
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This notice is available in alternative format upon request and may also be viewed at the following Internet site: http://www.crtc.gc.ca
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