ARCHIVED -  Telecom Order CRTC 99-242

This page has been archived on the Web

Information identified as archived on the Web is for reference, research or recordkeeping purposes. Archived Decisions, Notices and Orders (DNOs) remain in effect except to the extent they are amended or reversed by the Commission, a court, or the government. The text of archived information has not been altered or updated after the date of archiving. Changes to DNOs are published as “dashes” to the original DNO number. Web pages that are archived on the Web are not subject to the Government of Canada Web Standards. As per the Communications Policy of the Government of Canada, you can request alternate formats by contacting us.


Telecom Order


Ottawa, 16 March 1999


Telecom Order CRTC 99-242


In the matter of mobile wireless services forbearance pursuant to Forbearance from Regulation of Mobile Wireless Services Provided by Municipally Owned Telephone Companies, Telecom Decision CRTC 98-19, 9 October 1998 (Decision 98-19).


File Nos.: 8085-RP0004/97 and 8638-D3-01/97


1.In Decision 98-19, the Commission granted forbearance from the regulation of mobile wireless services provided by the municipally owned telephone companies (MOTCs), subject to a MOTC demonstrating its compliance with certain safeguards specified in the Decision.


2.Decision 98-19 specified that forbearance would be effective thirty days after a MOTC demonstrates to the Commission that it: (1) (i) has filed Phase III results, based on approved Phase III procedures, with annual filings thereafter; (ii) has filed a Statement of Revenue Surplus/Shortfall applicable to mobile wireless services, with annual filings thereafter; (iii) has excluded mobile wireless services from revenue requirement and contribution calculations; and (2) provides mobile wireless services through a separate division or through an independent third party.


3.On 2 and 3 November 1998, Dryden Municipal Telephone System (Dryden) filed information with the Commission to demonstrate that it had complied with the above-noted safeguards.


4.Specifically, Dryden indicated that it: (1) (i) filed, as part of its interim 1997 Carrier Access Tariff (CAT), and will continue to file Phase III results with the Commission annually; (ii) provided an audited 1997 financial statement which shows the surplus/shortfall for its Dryden Mobility division which would be filed annually in the future; (iii) excluded the revenues and expenses from mobility operations in its Phase III results used for revenue requirement and contribution calculation purposes, noting that the Commission had already approved its accounting separation procedures; and (2) employs dedicated wireless employees where there is sufficient work to warrant it, and if not, it uses the accounting separation procedures noted above to provide financial data required for the separate division statements, in a manner similar to The Corporation of the City of Thunder Bay - Telephone Division which was granted wireless service forbearance in Decision 98-19.


5.No comments were submitted by any interested party.


6.The Commission notes that the fourth condition set out in Decision 98-19 requires a MOTC to provide mobile wireless services through a separate division or through an independent third party.


7.In the Commission's view, a separate division may or may not be staffed by dedicated employees and in Dryden's case, the relatively small number of permanent employees requires the company to have staff perform work both for the company's wireline telephone operation and its mobile wireless division.


8.The Commission notes that in Rogers Cantel Inc. v. Bell Canada - Marketing of Cellular Service, Telecom Decision CRTC 92-13, 29 June 1992, the Commission accepted the use of shared employees in affiliates or divisions, on condition that the costs of shared personnel are allocated appropriately to wireless and other operations and that there was adequate protection against information flows that could give an undue advantage to a telephone company.


9.More recently, in Joint Marketing and Bundling, Telecom Decision CRTC 98-4, 24 March 1998, the Commission lifted a long-standing prohibition against the joint marketing of wireless and wireline services for, among others, the independent telephone companies since they are subject to regulatory costing safeguards and cannot unduly limit competition in the wireless market.


10.In the Commission's view, Dryden has the appropriate Phase III and accounting separation procedures in place to meet the Commission's competitive safeguard concerns.


11.Further, the Commission considers that it would not be economically feasible to require Dryden to have dedicated employees given its very small size and current low customer demand related to wireless services.


12.On this basis, the Commission is satisfied that Dryden has met the conditions set out in Decision 98-19.


13.Accordingly, forbearance from regulation of Dryden's mobile wireless services, to the extent set out in Decision 98-19, will be effective thirty days from the date of this Order.


14.The Commission directs Dryden to issue forthwith, revised tariff pages in accordance with Decision 98-19.


Secretary General


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


Date modified: