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ARCHIVED - Order CRTC 2000-881

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Order CRTC 2000-881

Ottawa, 26 September 2000
Forbearance for single-line inside wiring granted for Hurontario
Reference: Tariff Notice 27
The Commission forbears conditionally from regulating single-line inside wire services provided by Hurontario Telephones Limited. Customers will continue to determine if transmission problems originate on their inside wiring, or on Hurontario's network.
Hurontario's forbearance application

1.

Hurontario Telephones Limited requested on 5 June 2000 that the Commission forbear from sections 24, 25, 27, 29 and 31 of the Telecommunications Act regarding installation, maintenance, rearrangement and repair of single-line inside wire services and jacks provided by the company.

2.

Hurontario submitted that the market for single-line inside wire services in its territory is competitive. It also submitted that its accounts for single-line inside wire allow for adequate tracking of all revenues and expenses associated with the provision, movement, rearrangement and repair of single-line inside wiring and jacks. Hurontario said these accounts will be allocated to the Competitive Terminal category under Phase III, and that this treatment will ensure that there is no cross-subsidization of either local rates or toll contribution.

3.

No party intervened with respect to Hurontario's application.
The Commission analyzes the application

4.

The Commission believes that the market for single-line inside wire services in Hurontario's territory is sufficiently competitive to protect the interests of users.

5.

The proposed accounting procedures also appear to protect against anti-competitive cross-subsidies if single-line inside wire services were forborne.

6.

The Commission considers that below-cost pricing of single-line inside wire services by Hurontario is unlikely, because in the absence of barriers to entry, Hurontario could not recoup those losses via future price increases. The Commission concludes that forbearance would not impair the continuation of competition for these services, so that forbearance is not precluded in the circumstances by subsection 34(3) of the Act.

7.

With respect to the installation, maintenance, rearrangement and repair of Hurontario's customers' single-line inside wire, the Commission will forbear from exercising its powers and duties under sections 24 (in part), 25, 29 and 31, and subsections 27(1), 27(2), 27(3) (in part), 27(4), 27(5) and 27(6) of the Act.

8.

Consistent with its decisions forbearing from the regulation of single-line inside wire services provided by Bell Canada and by Télébec ltée, the Commission finds that it would not be appropriate to refrain from exercising all its powers and duties under section 24 and subsection 27(3) of the Act for these Hurontario services.

9.

The Commission will retain sufficient powers under section 24 of the Act to specify possible future conditions for offering and providing inside wiring installation, maintenance and repair services, including possible conditions of access by competitors to the inside wiring of Hurontario's customers. The Commission will also ensure that existing conditions for confidentiality of customer information continue to apply. Customer confidentiality must be respected in all future contracts and other arrangements for services forborne in this decision.

10.

The Commission also considers it necessary to retain subsection 27(3) of the Act to ensure compliance with powers and duties not forborne from in this order.

11.

In the Bell Canada and Télébec decisions, the Commission forbore when it was assured that customers would have the ability to determine whether transmission problems originate on the inside wiring for which they are responsible, or on the company's network.

12.

The Commission considers that Hurontario's customers will have this ability if page 4, section 100 of the company's General Tariff, or its equivalent, states that Hurontario provides service up to a demarcation jack. Inside wire and jacks beyond the demarcation jack are, therefore, the responsibility of the customer.

13.

Pursuant to subsection 34(1) of the Act, the Commission finds as a question of fact, that to refrain from exercising its powers and duties under sections 24, 25, 29 and 31, and subsections 27(1), 27(2), (27(3), 27(4), 27(5) and 27(6) of the Act, to the extent set out in this order, with respect to Hurontario's installation, maintenance and repair of single-line inside wiring would be consistent with the Canadian telecommunications policy objectives.

14.

Pursuant to subsection 34(2) of the Act, the Commission finds as a question of fact that the provision of these services is sufficiently competitive to protect the interests of users.

15.

Pursuant to subsection 34(3) of the Act, the Commission finds that to refrain from exercising the powers and performing the duties to the extent set out in this order would not likely impair the continuance of a competitive market for these services.
Commission grants forbearance subject to conditions

16.

The Commission therefore orders that:
a) pursuant to subsection 34(4) of the Act, effective two weeks from the date of this order, sections 24 (in part), 25, 29 and 31, as well as subsections 27(1), 27(2), 27(3) (in part), 27(4), 27(5) and 27(6) of the Act do not apply, to the extent that they are inconsistent with the determinations in this order regarding Hurontario's installation, maintenance, rearrangement and repair of single-line inside wire; and
b) the tariff revisions proposed by Hurontario are approved effective two weeks from the date of this order, with the modification listed below.

17.

The tariff must provide that page 4, section 100 of the Hurontario's General Tariff, or its equivalent, reads:
5. Connection of primary exchange service to inside wire and jacks.
5.01 General
The company furnishes all facilities on the customer's premises up to and including the demarcation point. Such demarcation point shall consist of a jack that will enable the customer to determine whether transmission problems are occurring on company-provided facilities (up to and including the demarcation point) or on customer-owned facilities (beyond the demarcation point).
a) Inside wire and jacks beyond the demarcation point are the responsibility of the customer.
Secretary General

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