ARCHIVED - Order CRTC 2000-630
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Order CRTC 2000-630 |
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| Ottawa, 6 July 2000 | |||||||||
Rates modified for province-wide 9-1-1 service |
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| Reference: Bell Canada Tariff Notices (TNs) 6417 and 715 (NST), MTS Communications Inc. TN 379, NBTel Inc. TN 829, TELUS Communications (B.C.) Inc. TN 4018 and TELUS Communications Inc. TN 178 | |||||||||
| This order modifies, by majority vote, the formula to be used by several major incumbent telephone companies for the annual recalculation of their province-wide 9-1-1 rates. It also approves applications filed pursuant to Telecom Decision CRTC 99-17, subject to modifications, and amendments to Bell Canada's standard 9-1-1 Agreement. | |||||||||
Introduction |
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1. |
In 9-1-1 service - Rates for wireless service providers, Centrex customers and multi-line customers/manual access to the automatic location identification database, Telecom Decision CRTC 99-17, dated 29 October 1999, the Commission directed Bell Canada, MTS Communications Inc., NBTel Inc., TELUS Communications (B.C.) Inc. (TCBC) (formerly BC TEL) and TELUS Communications Inc. (TCI) (collectively, the companies) to change the method of charging wireless service providers (WSPs) and Centrex customers for province-wide 9-1-1 service. The Commission concluded that the companies should charge WSPs and Centrex customers per working telephone number, instead of per access line, and that the rate paid by WSPs should be discounted by 50 percent. To ensure that the change would be revenue neutral, the Commission directed the companies to recalculate their 9-1-1 rates on an annual basis in accordance with a formula set out in the decision. The Commission also directed the companies to provide manual access to their automatic location identification (ALI) databases in accordance with the terms and conditions set out in the decision. | ||||||||
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2. |
In December 1999, the companies filed tariff notices (TNs) proposing recalculated 9-1-1 service rates. Bell Canada also filed an amending agreement to its standard 9-1-1 Agreement with municipalities in order to permit manual access to the ALI database, where requested by a municipality. | ||||||||
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3. |
The Canadian Wireless Telecommunications Association (CWTA) filed comments with respect to all of the applications. Rogers Cantel Inc. filed a letter indicating that it supported the CWTA's comments. Clearnet Communications Inc. filed comments with respect to the applications of Bell Canada, TCI and TCBC and stated that it fully supported the CWTA's comments. The Alberta E9-1-1 Advisory Association (AEAA) and the Montréal Urban Community and the Union des municipalités du Québec (MUC/UMQ) filed comments with respect to Bell Canada's proposed amending agreement. Each of the companies filed reply comments. | ||||||||
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4. |
On 14 December 1999, Bell Canada filed TN 715 proposing revisions to the National Services Tariff to make the proposed 9-1-1 service rate reduction applicable to competitive local exchange carriers (CLECs). | ||||||||
Formula modifie |
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5. |
According to the formula set out in Decision 99-17, the 9-1-1 rate is to be recalculated by dividing the 9-1-1 revenue (obtained under the former rate structure) by a new estimate of demand, which would now include WSP and Centrex working telephone numbers. The Commission directed the companies to use actual demand information for the month of September for the recalculation and to file the proposed recalculated rates by 1 December of each year. | ||||||||
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6. |
The CWTA submitted that the use of September actual wireless number counts in the formula could lead to an over-recovery of revenue due to the growth in the number of wireless subscribers. The CWTA submitted that, instead, the proposed rate should incorporate a forecast of the average annual wireless number count for the year in which the rates are to take effect. Assuming that the new 9-1-1 charges are to be in effect from 1 January to 31 December each year, the CWTA submitted that the rate should be calculated using an estimated wireless number count as at 30 June each year. The forecast would be obtained by adjusting actual September demand in light of the expected growth rate. The CWTA stated that the historical average annual growth rate of wireless subscribers is nearly 30 percent. | ||||||||
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7. |
In reply, the companies submitted that the proposed modifications are contrary to the Commission's directives and, therefore, involve a review and variance of Decision 99-17. The companies stated that they would provide comments on this issue if the CWTA were to file a review and vary application pursuant to section 62 of the Telecommunications Act. | ||||||||
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8. |
While reserving the right to comment in further detail, Bell Canada stated that it supported the use of actual numbers rather than a forecast. Bell Canada submitted that forecasts which overestimate the wireless telephone number count would result in a 9-1-1 rate that is too low. | ||||||||
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9. |
As the CWTA's proposal does not challenge the correctness of an integral aspect of the original decision, the Commission considers that the proposed modification should not be characterized as an application to review and vary Decision 99-17. | ||||||||
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10. |
Based on the wireless demand growth information provided by the CWTA, the Commission considers that the actual September wireless number count used in the formula would underestimate the wireless demand for the year in which rates are to take effect. This could result in a higher 9-1-1 rate and an over-recovery of revenue. | ||||||||
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11. |
The Commission considers that it would be appropriate to add a multiplicative factor to the formula to account for the demand growth caused by wireless subscribers. This factor is to be applied to the actual September wireless demand to provide an estimate of the wireless demand at the midpoint of the following year. | ||||||||
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12. |
The Commission notes that overestimating the wireless demand could result in 9-1-1 rates that are too low and an under-recovery of revenue. | ||||||||
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13. |
The majority of Commissioners concluded that the actual September wireless demand should be increased by 15 percent in the recalculation formula for rates to come into effect after the year 2000. As the rates to come into effect in the year 2000 will only apply during the latter part of the year, the majority of Commissioners concluded that the September 1999 wireless demand should be increased by 20 percent in the recalculation formula for that year. | ||||||||
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14. |
The Commission directs the companies to recalculate their 9-1-1 rates on an annual basis, in accordance with the formula set out in Appendix A. | ||||||||
Effective date is 60 days from the time of approval |
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15. |
Bell Canada requested that the effective date for the recalculated rates be no earlier than 1 November 2000. It submitted that it would take at least 10 months to establish the necessary billing information for its Centrex customers. | ||||||||
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16. |
The CWTA recommended that the Commission render its tariff decision at least six months prior to the effective date. The association submitted that wireless carriers would need time to explore business and systems issues, as well as the feasibility of flowing the new charge through to customers and customer notification. The CWTA submitted that these deliberations would depend on the absolute value of the rates that are ultimately approved by the Commission. | ||||||||
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17. |
The Commission notes that carriers have had the opportunity to explore business and systems issues since Decision 99-17 was issued on 29 October 1999. The proposed recalculated rates were placed on the public record in December 1999. The Commission considers that it would be reasonable for the recalculated rates for the year 2000 to come into effect on 5 September 2000. | ||||||||
Wireless number counts to be provided to Carrier Services Groups |
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18. |
Decision 99-17 directed WSPs to provide the companies with the number of wireless working telephone numbers equipped for outward calling on a monthly basis. The CWTA submitted that a provincial telco breakdown byindividual wireless carrier is confidential because it is not available in the public domain. The CWTA recommended that the Commission allow as an option the use of a third party to aggregate the working telephone numbers and the associated monthly payments for remittance to the companies. | ||||||||
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19. |
In their reply comments, TCI and TCBC submitted that their carrier services departments were established to handle the confidential information for interexchange carriers, CLECs and other carriers and that the established processes should be applicable to WSPs. TCI and TCBC stated that the introduction of a third party would require additional agreements and associated administration costs. They submitted that a workable process to support the proposal must first be defined clearly before implementation could occur and that they would expect to be compensated for any related additional costs. | ||||||||
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20. |
The Commission is not persuaded that it is necessary to have a third party aggregate the wireless working telephone numbers. The Commission believes WSPs should provide the number information to the companies' Carrier Services Groups, which were established to handle confidential information provided by various carriers. | ||||||||
WSP charges apply only when telcos' 9-1-1 platform is used |
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21. |
The CWTA submitted that the companies should include notes in their tariffs specifying that the per-number 9-1-1 charge only applies when a wireless carrier uses the company's 9-1-1 platform. | ||||||||
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22. |
The Commission notes that the proposed 9-1-1 charges would not apply to wireless carriers which use an alternate 9-1-1 service. Such carriers would also not be required to provide working telephone number counts to the companies. In the Commission's view, the addition of a note in the tariff is not necessary. | ||||||||
9-1-1 service descriptions must clearly identify features |
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23. |
The CWTA recommended that the Commission direct MTS, TCI and TCBC to modify their 9-1-1 service descriptions to explicitly refer to the availability of access to emergency services for customers of wireless carriers. | ||||||||
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24. |
The Commission is not persuaded that the proposed revision is appropriate because the company's customer is the WSP, not the WSP's subscribers. | ||||||||
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25. |
The CWTA recommended that the Commission instruct MTS, TCI and TCBC to modify their tariffs to clearly identify which features or functionalities apply to wireless subscribers. | ||||||||
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26. |
The Commission considers that it is appropriate for the companies to ensure that their tariffs: | ||||||||
| a) clearly identify and describe the features or functionalities associated with 9-1-1 service (e.g. ALI, selective routing and call control features); and | |||||||||
| b) indicate which, if any, of these features are not available to wireless customers. | |||||||||
Areas not served |
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27. |
The CWTA submitted that the 9-1-1 tariffs should stipulate that charges applicable to wireless carriers apply only in areas served with province-wide 9-1-1 service. | ||||||||
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28. |
The Commission is of the view that the proposed modification is not appropriate. In Decision 99-17, the Commission directed the WSPs to provide the companies with the number of wireless working telephone numbers equipped for outward calling for billing purposes. The WSPs were not directed to exclude numbers associated with areas that do not have province-wide 9-1-1 service. The Commission notes that wireless end-users associated with central office codes in areas where 9-1-1 service is not offered can roam into areas with 9-1-1 service. | ||||||||
Manual access to the ALI database |
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29. |
The AEAA submitted that Bell Canada's proposed definition of manual access to the ALI database should be changed so manual access to the ALI database can be performed by any "emergency services operator", and manual access is permitted for "an incoming emergency call" rather than "an incoming 9-1-1 call". | ||||||||
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30. |
In reply, Bell Canada submitted that the type of service that the AEAA is proposing was never contemplated by Decision 99-17 and would involve significant implications for customer privacy. Bell Canada stated that allowing manual access to the ALI database by a remote party for emergency calls other than 9-1-1 dialed calls would raise confidentiality and liability issues for Bell Canada and other carriers using the service. | ||||||||
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31. |
The Commission notes that Decision 99-17 permits manual ALI to be performed only by operators at call answer centres (also referred to as Public Safety Answering Points or PSAPs) operated by municipalities, or other governmental authorities, responsible for the provision of emergency services. The Commission notes that the safeguards set out in Decision 99-17 are to be included in the 9-1-1 Agreement with the municipality that operates the call answer centre, where the municipality has requested manual access to the ALI database. If manual ALI were permitted for "other emergency service operators", the safeguards would not be applicable. The Commission agrees that this would raise confidentiality and liability issues not contemplated in the proceeding leading to Decision 99-17. The Commission further notes that the agreement between Maritime Tel & Tel Limited and the Province of Nova Scotia permits manual ALI to be performed only by the PSAP operator. | ||||||||
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32. |
With respect to the second modification proposed by the AEAA, Decision 99-17 notes that, manual ALI is permitted for "incoming emergency calls", whether the call is 9-1-1 dialed or via a seven-digit line. | ||||||||
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33. |
The Commission considers that it would be appropriate for Bell Canada to amend the part of section 1 of the Amending Agreement that would add section 1.6.1 to the 9-1-1 Agreement by replacing the words "incoming 9-1-1 call" with "incoming emergency call" and replacing the word "cellular" with "wireless". | ||||||||
Obligation to provide facilities |
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34. |
The proposed section 5.5.1 of the 9-1-1 Agreement, which would be added by section 2 of the Amending Agreement, states that the municipality shall provide, at its own expense, "the necessary facilities to conduct manual access to the ALI database". MUC/UMQ submitted that this obligation of the municipalities should only apply at their end and that Bell Canada should have the obligation to provide similar necessary facilities at its end. | ||||||||
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35. |
In reply, Bell Canada submitted that it should not have to assume any costs for facilities required to provide the municipality with manual access to the ALI database. Bell Canada stated that it has equipped its 9-1-1 platform to receive manual access to the ALI database as detailed in the company's 9-1-1 Public Emergency Reporting Service (PERS) terminal-to-network interface document. Bell Canada stated that this document provides municipalities with the appropriate configuration options available for all 9-1-1 interface requirements to the company's 9-1-1 platform. If the municipality's terminal equipment is not compatible with the configuration options, Bell Canada submitted that the municipality should make the necessary modifications to its equipment to achieve compatibility with the 9-1-1 platform. Bell Canada submitted that the cost would be onerous if it had to modify its facilities each time a municipality with incompatible equipment requested manual access to the ALI database. | ||||||||
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36. |
As Bell Canada has equipped its 9-1-1 platform to receive manual access to the ALI database under various configurations, the Commission is not persuaded that it is appropriate to modify the proposed section 5.5.1. | ||||||||
Reciprocal indemnification |
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37. |
MUC/UMQ noted that the proposed section 12.4 of the 9-1-1 Agreement, which would be added by section 3 of the Amending Agreement, provides for reciprocal indemnification by both parties in case of any claim as a result of a material breach of the agreement by the other party. They also submitted that the subject of reciprocal indemnification was raised only in the context of manual access to the ALI database in the proceeding leading to Decision 99-17. MUC/UMQ submitted that the scope of section 12.4 should be circumscribed to cover only the relevant obligations of the parties with respect to manual access to the ALI database. | ||||||||
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38. |
The Commission agrees that section 12.4 of the 9-1-1 Agreement should only provide for reciprocal indemnification in the case of claims resulting from a material breach of the obligations with respect to manual access to the ALI database. | ||||||||
Suspension of the data link |
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39. |
The proposed section 20 of the 9-1-1 Agreement, which would be added by section 4 of the Amending Agreement, permits suspension of the data link to the PSAP, with Commission approval and upon reasonable notice to the municipality, in the event of any material breach of the municipality's obligations set out in the agreement. MUC/UMQ submitted that the proposed section 20 should only apply in respect of a material breach of the municipality's obligation with respect to manual access to the ALI database. | ||||||||
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40. |
MUC/UMQ further submitted that Bell Canada shouldhave the obligation to provide notice to the municipality at the time it seeks Commission approval to suspend such functions and that once the Commission has approved the suspension, the municipality should be given reasonable advance notice of the suspension by the company. | ||||||||
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41. |
Bell Canada stated that it would be prepared to revise the proposed section 20 of the 9-1-1 Agreement accordingly. | ||||||||
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42. |
The Commission considers that it would be appropriate for Bell Canada to revise the proposed section 20 as indicated in paragraphs 40 and 41. | ||||||||
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43. |
MUC/UMQ also submitted that the suspension of the data link is not the appropriate recourse in the case of a breach of the Amending Agreement. MUC/UMQ submitted that the proper recourse is the suspension of the manual access to the ALI database. | ||||||||
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44. |
In reply, Bell Canada submitted that suspension of the data link is the only means available to allow Bell Canada to control manual access to the ALI database. Bell Canada submitted that if the Commission considers the facts in a given case to be serious enough to approve suspension of the data link, it is not likely in the public interest for the municipality to continue to employ the offending PSAP in question. Finally, Bell Canada stated that suspension or disconnection of services would be a last resort, as reflected by Bell Canada's Terms of Service. | ||||||||
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45. |
Decision 99-17 requires the companies to include, in the 9-1-1 agreements with municipalities, "provisions enabling suspension of the data link to the PSAP in the event of a breach". In light of this and Bell Canada's submissions, the Commission deems it appropriate that section 20 of the 9-1-1 Agreement would permit suspension of the data link to the PSAP. | ||||||||
Summary of conclusions |
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46. |
The Commission directs the companies to recalculate their province-wide 9-1-1 rates on an annual basis, in accordance with the formula set out in Appendix A. The companies are to file the proposed recalculated rates by 1 December of each year. | ||||||||
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47. |
For billing purposes, the Commission orders the WSPs using a company's province-wide 9-1-1 service to provide, on a monthly basis, the number of wireless working telephone numbers equipped for outward calling to the company's Carrier Services Group. | ||||||||
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48. |
The Commission approves Bell Canada TNs 6417 and 715 (NST), MTS TN 379, NBTel TN 829, TCBC TN 4018 and TCI TN 178 to come into effect on 5 September 2000, subject to the following changes: | ||||||||
a) the Commission directs Bell Canada, MTS, NBTel and TCBC to replace the proposed 9-1-1 rates with the following rates, which were calculated pursuant to the revised formula. The 9-1-1 rate for TCI calculated pursuant to the revised formula remains at $0.16, as proposed in TCI TN 178.
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| b) the Commission directs Bell Canada to change the rate at Item 635.4(b) of the National Services Tariff, for access by CLEC end-customers to Bell Canada's province-wide 9-1-1 service from $0.25 to $0.24. | |||||||||
| c) the Commission directs Bell Canada to add the following note to Item 1400(6)(d) of its General Tariff by 5 September 2000: "The DS-0 charge is not applicable to DS-0s used exclusively to deliver calls originated by WSP customers to the PSTN." | |||||||||
| d) the Commission directs the companies to ensure that their General Tariff items for 9-1-1 service: i) clearly identify and describe the features or functionalities associated with 9-1-1 service (e.g. ALI, selective routing, and call control features); and ii) indicate which, if any, of these features are not available to wireless customers. | |||||||||
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49. |
The companies are to issue revised tariff pages to reflect the required changes within 60 days. | ||||||||
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50. |
The Commission approves the Amending Agreement to Bell Canada's standard 9-1-1 Agreement with municipalities, subject to the following modifications. Bell Canada is directed to: | ||||||||
| a) amend the part of section 1 of the Amending Agreement that would add section 1.6.1 to the 9-1-1 Agreement by replacing the words "incoming 9-1-1 call" with "incoming emergency call", and replacing the word "cellular" with "wireless". | |||||||||
| b) amend section 3 of the Amending Agreement, which would add section 12.4 to the 9-1-1 Agreement, so it would provide for reciprocal indemnification only in the case of claims resulting from a material breach of the obligations with respect to manual access of the ALI database. | |||||||||
| c) revise section 4 of the Amending Agreement, which would add section 20 to the 9-1-1 Agreement, so that: | |||||||||
| i) section 20 would only apply in respect of a material breach of the municipality's obligations with respect to manual access to the ALI database; | |||||||||
| ii) Bell Canada would be obliged to provide notice to the municipality at the time it seeks approval of the Commission to suspend the data link; and | |||||||||
| iii) once the Commission has approved a suspension, Bell Canada would be required to provide the municipality with reasonable advance notice of suspension. | |||||||||
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51. |
Bell Canada is directed to file forthwith the revised Amending Agreement for the Commission's information. | ||||||||
| 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 | |||||||||
APPENDIX A |
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RECALCULATION FORMULA |
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Rnew = Rev
Legend
Dorig = SLR + SLB + ML + fcCTXA + WSPA + other |
Date Modified: 2000-07-06
- Date modified: