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ARCHIVED - Order CRTC 2000-556

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Order CRTC 2000-556

Ottawa, 19 June 2000
International contribution charges
Reference: Vidéotron (1998) ltée Tariff Notice 3
The Commission approves on an interim basis, with the changes listed below, Vidéotron (1998) ltée's proposed changes to its General Tariff that reflect Commission directed changes to international contribution provisions.

1.

Vidéotron (1998) ltée (VL) filed an application proposing revisions to its General Tariff pursuant to the Commission's letter decision dated 17 December 1999 regarding the Final Consensus Report (the report) filed on 23 June 1999 by the Industry Task Force on International Contribution Issues. VL filed its application on 7 February 2000.

2.

The Commission considers that the proposedrevisions to thecontribution charge provisions do not fully reflect the determinations in its letter decision dated 17 December 1999.

3.

The Commission notes that it has issued a number of other decisions regarding the contribution mechanism that should have been reflected in VL's General Tariff.

4.

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 providers (WSP) surcharges resulting from changes in the direct access line (DAL) loading factor.

5.

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 (LECs) were directed to ensure that their tariffs reflected its directives and, where necessary, to issue revised tariff pages.

6.

In a second letter decision issued 15 December 1999 regarding the TELUS application pursuant to Section 62 of the Telecommunications Act 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 LECs to issue revised tariff pages reflecting its directives.

7.

The Commission considers that VL's tariff should be revised to be consistent with Decision 99-20 and its letter decisions dated 15 December 1999.

8.

The Commission also notes that VL contribution charge provisions include per-circuit contribution rates for line-side access for areas where equal access is available as well as for areas where equal access is not available. In Local competition, Telecom Decision CRTC 97-8, dated 1 May 1997, competitive local exchange carriers (CLECs) were directed to provide equal access in all territories where they planned to operate. The Commission considers that those contribution provisions for areas where equal access is not available are unnecessary, and so should be removed from VL's tariff.

9.

Throughout Part C, VL uses the term "interexchange carrier" (IXC) when the specific tariff provisions would apply to both IXCs and resellers. The Commission considers that, where appropriate, the term "interexchange service provider", which encompasses IXCs and resellers, should replace the term "interexchange carrier".

10.

The Commission considers that further to Contribution on traffic carried by alternate providers of long distance services over direct access lines, Telecom Decision CRTC 99-9, dated 20 July 1999, VL should include definitions for the terms "direct access line" and "interexchange service provider" in its tariff.

11.

In addition to the above, the Commission is of the view that VL's tariff requires other minor changes for the purposes of correcting and clarifying various terms and conditions.

12.

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 definitions of "Class A licensee" and "overseas circuit" 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.
Overseas circuit means a circuit that connects a service or a facility of an international service provider to a country other than the United States, directly or via an overseas carrier, for the purpose of providing overseas services.
ii) add the following definitions for "class B licensee", "direct access line" and "interexchange service provider":

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.
Direct access line (DAL) means a network arrangement used to transmit traffic over a dedicated facility between an IXSP's interexchange network and a subscriber's premises.
Interexchange service provider (IXSP) means an IXC or reseller which provides interexchange message toll service.
B. In Part C, change all occurrences of the term "IXC" to "IXSP" except for those in Items 300(1) (n) and (o), and where the reference is to the "CLEC-IXC Agreement" in Items 300(1) (f), 303(1) (b) and (c);
C. In Item 302(1)(a):
i) replace each occurrence of the term "APLDS" with "carriers and other service providers";
ii) add "(y)" at the end of the title identified for column B, to indicate the existence of note (y);
iii) insert note "(y)" at the beginning of the fifth paragraph to indicate that this is the note which applies to column B;
D. In Item 302(1)(b),
i) delete columns B and D from the table and delete all corresponding references to these columns;
ii) re-title "Column C" as "Column B";
iii) replace each occurrence of the term "APLDS" with "carriers and other service providers";
iv) add "(y)" at the end of the title identified for column B, to indicate the existence of note (y); and
v) insert a "(y)" at the beginning of the third paragraph to indicate that this is the note which applies to "Column B";
E. In Item 302(2) (a):
i) replace the current title of the section with the following title: "Overseas and Canada-U.S. Circuits";
ii) replace the first paragraph with the following:

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.
iii) in the second paragraph, replace each occurrence of the term "APLDS" with "carriers and other service providers";
iv) move the last two paragraphs including the rate table in Item 302(2)(b) to Item 302(2)(a) so that they immediately follow the second paragraph;
v) add "(y)" at the end of the title identified for column B, to indicate the existence of note (y);
vi) replace the fourth paragraph with the following:

(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 VL 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 VL, and the contribution rate applicable to the carriers and other service providers that do use DALs would immediately apply.
vii) re-label the fifth and sixth paragraphs as items (b) and (c) and replace the fifth paragraph with the following:
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 VL'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 VL'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 VL'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., 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.
F. Re-label the original Item 302(2) (b) as Item 302(2) (d);
G. In Item 302(3):
i) replace sub-item c) with the following two sub-items and re-title existing sub-item d) as sub-item e):

c) The contribution charges specified in Items 1 and 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.
H. In Item 403.6, amend the IX contribution charge , per activated access channel to read "$6.35".
2. VTL is directed to issue forthwith revised tariff pages incorporating the changes set out above.

 

Secretary General
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