ARCHIVED - Public Notice CRTC 2000-82

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Public Notice CRTC 2000-82

Ottawa, 12 June 2000

Seeking comments on contribution-eligible DAL traffic provided by long distance providers' affiliates

Reference: 8695-C12-13/00
This public notice initiates a proceeding to consider the appropriate treatment of contribution-eligible traffic carried over direct access lines (DALs) to end-customers where DAL services are provided or resold by the affiliate of any provider of long distance service.
DALs connect an end-user directly with a switch owned by a provider of long distance service.

DAL milestones

1.

In Contribution on traffic carried by alternate providers of long distance services over direct access lines, Telecom Decision CRTC 99-9, dated 20 July 1999, the 2% DAL surcharge, in effect at that time, did not adequately account for alternate providers of long distance services' (APLDS) traffic carried over DALs and it noted that some remedial action was required.

2.

However, the Commission was of the view that it would be inappropriate to require companies to make major changes to the current collection mechanism for DALs, given that the overall contribution collection mechanism may be modified as a result of Review of contribution collection mechanism and related issues, Telecom Public Notice CRTC 99-6, dated 1 March 1999.

3.

The Commission concluded that incumbent local exchange carrier (ILEC)-specific surcharges would closely approximate the contribution amounts that would be generated under a per-minute mechanism and would provide for greater competitive equity. These surcharges were subsequently set out in Review of frozen contribution rate policy, Telecom Decision CRTC 99-20, dated 15 December 1999.

4.

Decision 99-9 noted that a simple exemption mechanism was appropriate for those APLDS that do not use any DALs. As a result, APLDS may file an annual affidavit, sworn by a senior officer of the company that states it does not use any DALs.

5.

On 15 December 1999, in the ruling on RSL COM Canada Inc.'s application for an exemption from the DAL surcharge, the Commission considered that the DAL surcharge exemption mechanism should apply on an ILEC territory-specific basis.

6.

On 2 March 2000, AT&T Canada Corp. filed an affidavit confirming that, effective 1 March 2000, it no longer offered long distance services using DALs and indicated that its DAL-based business had been assigned to an affiliate.

7.

On 17 March 2000, Call-Net Enterprises Inc. informed the Commission that, effective 1 March 2000, it no longer offered DAL services in the operating territories of Bell Canada, Maritime Tel & Tel Limited (MTT), MTS Communications Inc., and NBTel Inc., and TELUS Communications Inc., and TELUS Communications (B.C.) Inc. (collectively TELUS). Call-Net also noted that DAL services to end-customers were being provided by an affiliate.

8.

On 29 March 2000, a letter to AT&T Canada from Bell Canada, Island Telecom Inc. MTS, MTT, NBTel and NewTel Communications Inc., stated that AT&T Canada was attempting to avoid payment of contribution. The letter noted AT&T Canada was in contravention of the CRTC's principles and intentions regarding recovery of contribution from the companies' DAL traffic. On the same date, the telcos conveyed the same comments by letter to Call-Net.

9.

On 6 April 2000, TELUS requested that the Commission deny Call-Net's and AT&T Canada's exemption applications and consider imposing an affiliate rule with respect to APLDS' use of DALs. In addition, TELUS requested that the Commission declare that contribution-eligible traffic, carried by a pure DAL provider on behalf of other service providers, be subject to contribution on a per-minute basis.

Seeking input on DAL contribution for services provided by affiliates

10.

The Commission hereby initiates a proceeding to consider the appropriate treatment of contribution-eligible traffic carried over DALs to end-customers where DAL services are provided by an affiliate of any provider of long distance services.

11.

Accordingly, the Commission seeks comments on the collection of contribution for long distance service carried over DALs by affiliates, including, but not limited to:
a)   the current procedures being followed for contribution-eligible DAL minute reporting, either provided or resold by an affiliate of any provider of long distance services;
b)   identification of all affiliates where DAL services are provided by an affiliate and no contribution is paid;
c)   whether the affiliate is a reseller of long distance services over DALs and/or provides other non-DAL contribution-eligible toll services;
d)   identification of the entity responsible for billing end-customers;
e)   whether an affiliate rule is necessary and, if so, what form it should take; and
f)   collection methods for the recovery of contribution including audit and reporting requirements.

Procedure

12.

Bell Canada, Island Tel, MTT, NBTel, NewTel, MTS, and TELUS (the telcos) are all made parties to this proceeding. AT&T Canada, Call-Net, Distributel Communications Limited, London Telecom Network Inc., Primus Canada, and RSL COM (the APLDS) are also made parties to this proceeding.

13.

Other persons wishing to participate in this proceeding must notify the Commission of their intention to do so by writing to the Secretary General, CRTC, Ottawa, Ontario, K1A 0N2, fax: (819) 953-0795, by 16 June 2000. Parties are to indicate in the notice their email address, where available. If parties do not have access to the Internet, they are to indicate in their notice whether they wish to receive disk versions of hard-copy filings.

14.

The Commission will issue a complete list of parties and their mailing addresses (including email addresses, if available), identifying those parties who wish to receive disk versions.

15.

Any party may file with the Commission, serving copies on all parties, their submissions in this proceeding by 23 June 2000. In addition, any other party may file submissions by the same date, serving copies on all parties.

16.

The Commission will address interrogatories to the telcos and the APLDS by 7 July 2000. Parties may address interrogatories to other parties, filing copies with the Commission, by the same date. Responses to the interrogatories are to be filed with the Commission, with copies served on all parties, by 19 July 2000.

17.

Requests by parties for further responses to their interrogatories, specifying in each case why a further response is both relevant and necessary, and requests for public disclosure of information for which confidentiality has been claimed, setting out the reasons for disclosure, must be filed with the Commission and served on the party or parties in question by 26 July 2000.

18.

Written responses to requests for further responses to interrogatories and for public disclosure must be filed with the Commission and served on the party making the request by 2 August 2000.

19.

Requests for disclosure and for further information will be disposed of as soon as possible, and it is expected that any information to be provided pursuant to that disposition be filed with the Commission and served on all parties to the proceeding by 23 August 2000.

20.

All parties may file comments with the Commission on any matter within the scope of this proceeding, serving copies on all other parties, by 5 September 2000.

21.

All parties may file replies to any comments made pursuant to paragraph 20, serving copies on all parties who filed comments by 12 September 2000.

22.

Where a document is to be filed or served by a specific date, the document must be actually received, not merely sent, by that date.

23.

In addition to hard copy filings, parties are encouraged to file with the Commission electronic versions of their submissions in accordance with the Commission's Interim telecom guidelines for the handling of machine-readable files, dated 30 November 1995. The Commission's email address for electronically filed documents is procedure@crtc.gc.ca. Electronically filed documents can be accessed at the Commission's Internet site at http://www.crtc.gc.ca.

24.

The record of this proceeding may be examined, or will be made available promptly upon request, at the Commission's offices in the following locations:
Central Building
Les Terrasses de la Chaudière
1 Promenade du Portage, Room G-5
Hull, Quebec K1A 0N2
Tel: (819) 997-2429 - TDD: 994-0423
FAX: (819) 994-0218
Bank of Commerce Building
1809 Barrington Street
Suite 1007
Halifax, Nova Scotia B3J 3K8
Tel: (902) 426-7997 - TDD: 426-6997
FAX: (902) 426-2721
405 de Maisonneuve Blvd. East
2nd Floor, Suite B2300
Montréal, Quebec H2L 4J5
Tel: (514) 283-6607 - TDD: 283-8316
FAX: (514) 283-3689
55 St. Clair Avenue East
Suite 624
Toronto, Ontario M4T 1M2
Tel: (416) 952-9096
FAX: (416) 954-6343
Kensington Building
275 Portage Avenue
Suite 1810
Winnipeg, Manitoba R3B 2B3
Tel: (204) 983-6306 - TDD: 983-8274
FAX: (204) 983-6317
Cornwall Professional Building
2125 - 11th Avenue
Room 103
Regina, Saskatchewan S4P 3X3
Tel: (306) 780-3422
FAX: (306) 780-3319
Scotia Place Tower Two
19th Floor, Suite 1909
10060 Jasper Avenue
Edmonton, Alberta T5J 3R8
Tel: (780) 495-3224
FAX: (780) 495-3214
530-580 Hornby Street
Vancouver, British Columbia V6C 3B6
Tel: (604) 666-2111 - TDD: 666-0778
FAX: (604) 666-8322
Secretary General
This document is available in alternative format upon request and may also be examined at the following Internet site: http://www.crtc.gc.ca
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