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ARCHIVED - Order CRTC 2000-420

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Order CRTC 2000-420

Ottawa, 17 May 2000
C1's proposed tariff for access services in Ontario and Nova Scotia

Tariff Notice 3

The Commission approves on an interim basis, with the changes listed below, C1.com Inc.'s application proposing rates for access services in Ontario and the rest of Nova Scotia.

1.

C1 filed an application proposing revisions to its General Tariff (CRTC Tariff 21320). The application, filed on 28 January 2000, adds rates for access services in Ontario and extends the current access services to the rest of Nova Scotia.

2.

Bell Canada filed comments on behalf of itself, Island Telecom Inc., Maritime Tel & Tel Limited, MTS Communications Inc., NBTel Inc. and NewTel Communications Inc. on 18 February 2000.

3.

Bell Canada submitted that the definition of "class A licensee" should be revised further to the Commission's determinations in its letter decision dated 17 December 1999 with respect to the Final Consensus Report filed on 23 June 1999 by the Industry Task Force on International Contribution Issues.

4.

Bell Canada also submitted that the definitions for "exchange" and "overseas circuit" require changes and that definitions for the terms "competitive pay telephone service provider" and "direct access line" should be included. The Commission considers that Bell Canada's proposed changes, with the exception of the definition for "exchange" which is correct, are appropriate. Further, C1 should also include a definition for "class B licensee".

5.

Bell Canada noted that C1 has not included rates for Ontario in its tariff provisions for the termination of traffic from exchanges within the local calling area. The Commission agrees with Bell Canada that these rates are required.

6.

Bell Canada submitted that C1's contribution provisions require changes to reflect the Commission's recent determinations with respect to contribution.

7.

The Commission notes that it issued several decisions in 1999 that affect the contribution mechanism.

8.

In Review of frozen contribution rate policy, Telecom Decision CRTC 99-20, dated 15 December 1999, the Commission directed all carriers providing local exchange service to issue amended tariff pages effective 1 January 2000, reflecting the changes to contribution rates and wireless service provider (WSP) surcharges resulting from changes in the direct access line (DAL) loading factor. The Commission notes that the decision affects, for interexchange service providers (IXSPs), both the per minute contribution rates and the per circuit contribution rates for line-side access.

9.

In a letter decision dated 15 December 1999 with respect to Bell Canada's application regarding contribution on traffic carried by alternate providers of long distance services over DALs, the Commission determined that DAL surcharges apply to contribution assessed on international traffic. All local exchange carriers were directed to ensure that their tariffs reflected its directives and, where necessary, to issue revised tariff pages.

10.

In a second letter decision issued 15 December 1999 regarding an application filed by TELUS Communications Inc. and TELUS Communications (B.C.) Inc. (together TELUS) pursuant to section 62 of the Telecommunications Act requesting to modify the international contribution regime to introduce a single blended contribution rate for Canada, the Commission determined that, effective 1 January 2000, the contribution rates for each incumbent local exchange carrier (ILEC) territory will be set at Bell Canada's rates for the international end of any call. The Commission directed all local exchange carriers to issue revised tariff pages reflecting its directives.

11.

In its letter decision issued on 17 December 1999, the Commission made its determinations with respect to the Final Consensus Report filed on 23 June 1999 by the Industry Task Force on International Contribution Issues. The report recommended solutions for various international contribution issues arising from Regulatory regime for the provision of international telecommunications services, Telecom Decision CRTC 98-17, dated 1 October 1998. The Commission directed the competitive local exchange carriers (CLECs) and the ILECs to file by 1 February 2000 proposed tariff revisions to implement its directives.

12.

The Commission considers that C1's tariff should be revised to be consistent with Decision 99-9 entitled Contribution on traffic carried by alternate providers of long distance services over direct access lines and Decision 99-20, and its letter decisions dated 15 December 1999 and 17 December 1999.

13.

In addition to the above, the Commission is also of the view that several items in C1's tariff require minor changes for the purpose of correcting and/or clarifying various references and provisions.

14.

In light of the foregoing, the Commission orders that:
1. The proposed tariffs are approved on an interim basis, with the following amendments:
a) in Item 100, Definitions:
i) replace the definition of "class A licensee" with the following:
Class A licensee means a telecommunications service provider who:
a) operates telecommunications facilities used in transporting basic international traffic between Canada and another country, whether those facilities are owned by the licensee or leased from a separate facilities provider; or
b) operates telecommunications equipment that converts basic international traffic from circuit-switched minutes originating in Canada to non-circuit-switched traffic, or from non-circuit-switched traffic to circuit-switched minutes terminating in Canada, regardless of whether the licensee is responsible for the international transport; or
c) performs both of the functions described in a) and b) above.
Such telecommunications service providers shall have obtained from the Commission a class A license for the provision of basic international telecommunications services. For more information with respect to licensing requirements refer to the Commission's web site at www.crtc.gc.ca.
ii) add the following definitions for "class B licensee", "competitive pay telephone service provider" and "direct access line":
Class B licensee means a telecommunications service provider who provides international telecommunications service but neither:
a) operates telecommunications facilities used in transporting basic international traffic between Canada and another country; nor
b) operates telecommunications equipment that converts basic international traffic from circuit-switched minutes originating in Canada to non-circuit-switched traffic, or from non-circuit-switched traffic to circuit-switched minutes terminating in Canada.
Class B licensees include service providers who resell the switched services of other service providers. Such telecommunications service providers shall have obtained from the Commission a class B license for the provision of basic international services. For more information with respect to licensing requirements refer to the Commission's web site at www.crtc.gc.ca.
Competitive pay telephone service provider means a company or individual which provides competitive pay telephone service for use by the general public. For the purpose of this tariff, the competitive pay telephone service provider is C1's customer.
Direct access line means a network arrangement used to transmit traffic over a dedicated facility between an IXSP's interexchange network and a subscriber's premises."
b) in Item 200(2) add the following rate table for the province of Ontario:
Ontario
Order processing, each order Service charge $206.00
Interconnection trunk activation or change, each trunk service charge $24.85
Trunk termination charge Monthly rate per trunk
Up to 24 trunks $11.60
Up to 48 trunks $18.20
Up to 72 trunks $20.20
Up to 96 trunks $21.25
Over 96 trunks $21.75
c) amend Item 302(1)(a) as follows:
i) in the first table, replace the title "Contribution charge, applicable to IX traffic other than ILEC" with "Carriers and other service providers that use DALs" and replace the corresponding rates for Ontario as follows:
Peak period $0.0075
Off-peak period $0.0038
ii) in the second table, replace the title "Contribution charge, applicable to the traffic of ILEC operating in the territory" with "Carriers and other service providers that have attested that they do not use DALs (y)" and replace the corresponding rates for Ontario as follows:
Peak period $0.0066
Off-peak period $0.0033
iii) add the following note after "Note 1" in Item 302(1)(a):
(y) An attestation that a carrier or other service provider does not use DALs requires that the carrier or other service provider provide an affidavit to C1 and the Commission, sworn by a senior officer of the company, attesting to the fact that the carrier or other service provider does not use any DALs to originate or terminate traffic in the applicable ILEC's operating territory. The affidavit must be resubmitted on an annual basis and include a statement that if, during the year, the carrier or other service provider uses any DALs, the carrier or other service provider will notify the Commission immediately, serving a copy on C1, and the contribution rate applicable to the carriers and other service providers that do use DALs would immediately apply.
d) amend Item 302(1)(b) as follows:
i) divide the column "Monthly contribution charge Nova Scotia" into two sub-columns as follows:
Number of circuits in the circuit group Carriers and other service providers that use DALs
1-3 $15.00
4-6 $50.00
7-9 $73.00
10-14 $91.00
15-19 $106.00
20-29 $119.00
30-39 $131.00
40-49 $138.00
50-74 $146.00
75-99 $154.00
100 and over $163.00
Number of circuits in the circuit group Carriers and other service providers that attest that they do not use DALs (y)
1-3 $13.00
4-6 $45.00
7-9 $65.00
10-14 $81.00
15-19 $95.00
20-29 $107.00
30-39 $117.00
40-49 $124.00
50-74 $131.00
75-99 $138.00
100 and over $146.00
ii) divide the column "Monthly contribution charge Ontario" into two sub-columns as follows:
Number of circuits in the circuit group Carriers and other service providers that use DALs
1-3 $4.00
4-6 $13.00
7-9 $19.00
10-14 $24.00
15-19 $28.00
20-29 $31.00
30-39 $34.00
40-49 $36.00
50-74 $38.00
75-99 $40.00
100 and over $43.00
Number of circuits in the circuit group Carriers and other service providers that attest that they do not use DALs (y)
1-3 $3.00
4-6 $11.00
7-9 $17.00
10-14 $21.00
15-19 $24.00
20-29 $27.00
30-39 $30.00
40-49 $32.00
50-74 $33.00
75-99 $35.00
100 and over $37.00
iii) add the following note at the end after the tables:
(y) An attestation that a carrier or other service provider does not use DALs requires that the carrier or other service provider provide an affidavit to C1 and the Commission, sworn by a senior officer of the company, attesting to the fact that the carrier or other service provider does not use any DALs to originate or terminate traffic in the applicable ILEC's operating territory. The affidavit must be resubmitted on an annual basis and include a statement that if, during the year, the carrier or other service provider uses any DALs, the carrier or other service provider will notify the Commission immediately, serving a copy on C1, and the contribution rate applicable to the carriers and other service providers that do use DALs would immediately apply.
e) replace Items 302(2) and 302(3) with the following:
2. Overseas and Canada-U.S. Circuits
a) For each overseas circuit that uses an international interconnection point located in the applicable ILEC's operating territory and for each Canada-U.S. circuit that crosses the border at a point located in the applicable ILEC's operating territory, the contribution charges specified below apply. The determination of whether or not an individual carrier's or other service provider's international traffic is DAL surcharge-exempt is based on the exempt/non-exempt status of the carrier or other service provider that hands off the international traffic directly to or receives such traffic directly from the class A licensee. Where the originating/terminating carrier or other service provider is also the class A licensee, it is the status of the originating/terminating carrier or other service provider that applies.
Carriers and other service providers that use DALs
Contribution charge, each minute of traffic (x):
Peak period $0.0075
Off-peak period $0.0038
Carriers and other service providers that have attested that they do not use DALs (y)
Contribution charge, each minute of traffic (x):
Peak period $0.0066
Off-peak period $0.0033
(x) For the purpose of per minute contribution, peak period is deemed to be 8:00 am to 5:00 pm Monday to Friday and off-peak period is deemed to be all other times including all day Saturday and Sunday.
(y) An attestation that a carrier or other service provider does not use DALs requires that the carrier or other service provider provide an affidavit to the applicable ILEC and the Commission, sworn by a senior officer of the company, attesting to the fact that the carrier or other service provider does not use any DALs to originate or terminate traffic in the applicable ILEC's operating territory. The affidavit must be resubmitted on an annual basis and include a statement that if, during the year, the carrier or other service provider uses any DALs, the carrier or other service provider will notify the Commission immediately, serving a copy on the ILEC, and the contribution rate applicable to the carriers and other service providers that do use DALs would immediately apply.
b) Class A licensees are required to report detailed monthly contribution minute information to the applicable ILEC, the Commission and the Central Fund Administrator (CFA) within 60 days of the end of the applicable month as follows:
i) with respect to contribution-eligible international traffic that the licensee transports between Canada and the United States using circuit switching protocol on telecommunications facilities operated by the licensee, the licensee shall a) report to the ILEC in whose territory a Canada-U.S. circuit crosses the border all contribution-eligible minutes, and b) remit to the ILEC the applicable contribution charges as specified in C1's tariffs;
ii) with respect to contribution-eligible international traffic that the licensee transports between Canada and a country other than the United States using circuit switching protocol on telecommunications facilities operated by the licensee, the licensee shall a) report to the ILEC in whose territory the gateway switch (i.e., the last switching point for outbound minutes and the first point of switching for inbound minutes) is located all contribution-eligible minutes, and b) remit to the ILEC the applicable contribution charges as specified in C1's tariffs;
iii) with respect to contribution-eligible international traffic that the licensee converts from circuit-switched minutes originating in Canada to non-circuit-switched traffic, or from non-circuit-switched traffic to circuit-switched minutes terminating in Canada, the licensee shall a) report to the ILEC all contribution-eligible minutes as measured at the point of conversion to the ILEC in whose territory the conversion occurs, and b) remit to the ILEC the applicable contribution charges as specified in C1's tariffs; and
iv) all minutes reported in i), ii) and iii) above shall be split by peak and off-peak periods and, where possible, by type of domestic service provider i.e., alternate provider of long distance services APLDs versus ILEC.
In cases in which the licensee has no traffic to report, the licensee shall provide a nil report to the ILEC, the Commission and the CFA.
c) Class A licensees are required to provide a quarter-ending report to the applicable ILEC, the Commission and the CFA within 60 days of the end of the applicable quarter as follows:
i) an affidavit signed by a senior officer of the licensee, attesting to the completeness and accuracy of the contribution reports and remittances covering the past three months;
ii) the number of Canada-U.S. and Canada-Overseas circuits (in units of DS-1 equivalents) as of the last day of the quarter, on which it has measured international contribution-eligible minutes in the preceding three months; and
iii) a declaration of the existence of protocol-conversion points, by ILEC territory, at which international contribution-eligible circuit-switched minutes originating in Canada are converted to non-circuit-switched traffic or at which non-circuit-switched international traffic is converted to contribution-eligible circuit-switched minutes terminating in Canada.
If there is no traffic to report, the affidavit shall state why the licensee has no traffic to report.
d) As an alternative to providing monthly and quarterly reports to the ILEC as noted in b) and c) above, the class A licensee may choose to provide these reports to an affiliated CLEC or a CLEC with which such class A licensee has a preferred relationship, as defined in the Central Fund Administration Agreement, and to 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 ILEC in writing of this choice, at least one month prior to the date the change becomes effective.
f) renumber Item 302(4) as Item 302(3) and replace with the following:
3. Exemptions
a) When an interconnecting circuit is used solely to access C1's message toll services, the contribution charges specified in Items 302(1) and 302(2) do not apply.
b) The contribution charges specified in Items 302(1) and 302(2) do not apply, when an interconnecting circuit associated with line-side access is:
- used to provide a dedicated voice or dedicated data service; or
- used to provide a local service; or
- 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.
c) The contribution charges specified in Items 302(1) and 302(2) above do not apply to:
- international data traffic; or
- international voice traffic carried on a facility dedicated to the use of one customer, or
- international transit traffic that does not connect to the Canadian public switched telephone network (PSTN).
d) An application to the Commission for a contribution exemption with respect to international traffic is not required except in the following instances:
- where switched domestic traffic is routed through another country on non-dedicated facilities; or
- where domestic traffic is routed through another country by a licensee but is not controlled by the licensee when it re-enters Canada; or
- where international traffic is routed through another country to reach an international gateway in another part of Canada.
When any of the above three situations apply, the licensee shall apply to the Commission on a case-by-case basis and provide evidence satisfactory to the Commission that it can accurately track and record contribution-eligible minutes on the facilities in question.
e) Where a competitive pay telephone service provider uses interconnecting circuits, such as pay telephone basic access lines, which are not directly connected to an interexchange network provided by the competitive pay telephone service provider or by another service provider, the contribution charges specified in Items 302(1) and 302(2) above do not apply. An application to the Commission for a contribution exemption is not required.
g) in Item 303(1)(d), amend the rates and charges table for Ontario as follows:
Ontario
Once only announcement creation fee charge $4,770.00
Announcement activation charge, each occurrence $336.00
h) in Item 306(3)(b), replace the accounts receivable management discount rate shown for Nova Scotia with 1.13%.
i) amend Item 402(2)(a) as follows:
a) Link (analogue) each channel
Nova Scotia $13.35/month
Ontario $12.70/month
j) at the end of Item 402(3), delete the word "toll" from the last sentence in "Note 1".
k) delete Item 402(4), CCS7.
l) amend Item 402(4)(e), CO Code Administration as follows:
Service charge:
Nova Scotia $74.95
Ontario $66.75
2. C1 is to issue forthwith revised tariff pages incorporating the changes set out above.
Secretary General
This document is available in alternate format upon request and may also be examined at the following Internet site: http://www.crtc.gc.ca
Date modified: