ARCHIVED -  Telecom Order CRTC 99-143

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Telecom Order


Ottawa, 22 February 1999


Telecom Order CRTC 99-143


By letter dated 30 October 1998, AT&T Canada Long Distance Services Company (AT&T Canada LDS) applied for an exemption from contribution for cross-border circuits which carry traffic that neither originates nor terminates in Canada. AT&T Canada LDS stated that the DS-3 that is the subject of this application connects the Worldcom International gateway switch in New York with AT&T Canada LDS' DMS switch in Markham.


File No.: 8626-A4-08/98


1.AT&T Canada LDS stated that this DS-3 facility is being configured to carry traffic which originates in the United States (U.S.) and is destined for overseas locations. AT&T Canada LDS stated that the contribution exemption is being applied for on the cross-border DS-3 only. AT&T Canada LDS stated that the trunk groups that carry the traffic from AT&T Canada LDS' Markham DMS to the overseas locations will also carry Canadian originated traffic and will therefore not be contribution exempt.


2.AT&T Canada LDS stated that it would file a technical audit, within 45 days of this application, to demonstrate that the circuits are used for transit traffic only and are therefore segregated from other cross-border facilities. AT&T Canada LDS sought a determination by the Commission that the circuits identified above qualify for an exemption from contribution charges and requested that the contribution exemption be effective the date of the application.


3.By letter dated 11 December 1998, AT&T Canada LDS stated that it required more time to file the technical audit because of technical difficulties.


4.By letter dated 8 January 1998, AT&T Canada LDS filed a technical audit report dated 31 December 1998 in confidence with the Commission and Bell Canada (Bell). AT&T Canada LDS requested that the effective date of the contribution exemption be 4 December 1998, the date when the circuits began to carry live traffic.


5.By letter dated 21 January 1999, Bell stated that it had reviewed the technical audit and noted that the auditor has confirmed that the U.S. cross-border facility carries only transit traffic and is segregated from other cross-border facilities. Further, Bell stated that the configuration, by design, precludes traffic that is either originated or terminated in Canada from being carried on the facility. Accordingly, based on the auditor's verification, Bell agreed with the requested exemption.


6.Bell noted that AT&T Canada LDS has requested that its contribution exemption be effective 4 December 1998, the date the circuits began to carry traffic. Bell stated that it has no objection to this proposed effective date on the basis that the AT&T Canada LDS application preceded this date and the technical audit was performed within a reasonable period of time after the circuits began carrying traffic.


7.The Commission is of the view that AT&T Canada LDS has filed a satisfactory technical audit which meets the evidentiary requirements.


8.With respect to the effective date, AT&T Canada LDS requested an effective date of 30 October 1998 in its letter of 30 October 1998. Then, in its letter dated 8 January 1999, AT&T Canada LDS requested an effective date of 4 December 1998, the date the circuits began to carry live traffic.


9.The Commission notes that consistent with Applications for Contribution Exemptions, Telecom Decision CRTC 93-2, 1 April 1993, contribution is only assessed on circuits that are in use. The Commission further notes that in Effective Date of Contribution Exemptions, Telecom Public Notice CRTC 95-26 dated 12 June 1995, the Commission stated that: "contribution exemptions will generally be granted effective the later of the date of the application or the date of installation, absent special circumstances." In this case, AT&T Canada LDS turned up its circuits on 4 December 1998, i.e., subsequent to the date of its application. In the circumstances of this case, the Commission considers that 4 December 1998 is the effective date and notes that Bell has no objection to this.


10.Since no live traffic was carried until 4 December 1998, the Commission is of the view that no contribution is payable in this case.


11.In light of the foregoing, AT&T Canada LDS' application is approved effective 4 December 1998 such that no contribution is payable.


Secretary General


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