ARCHIVED - Public Notice CRTC 2001-83

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Public Notice CRTC 2001-83

Ottawa, 17 July 2001

Mechanism to ensure compliance with the revenue-based contribution regime

Reference: 8695-C12-17/01

This public notice initiates a proceeding to seek comments on an appropriate mechanism that the Commission could employ to ensure all telecommunications service providers comply with the revenue-based contribution regime established in Decision CRTC 2000-745.


On 30 November 2000, the Commission issued Changes to the contribution regime, Decision CRTC 2000-745 which replaced the per-minute contribution regime with a revenue-based approach.


The new revenue-based contribution regime requires every telecommunications service provider (TSP), subject to a minimum revenue threshold, to contribute to the national fund based upon its total Canadian telecommunications service revenues, less certain deductions.


Following the issuance of the decision, five industry working groups were created to help develop the implementation details and ensure a smooth transition to the new regime.


Several remedies were developed to ensure all TSPs comply with the contribution regime. Pursuant to the National Contribution Fund Administration Agreement, which is being drafted by one of the industry working groups, the Central Fund Administrator (CFA) will have remedies to deal with defaulting TSPs. Several industry representatives expressed the view that an enforcement mechanism, which the Commission could impose on defaulting TSPs to supplement the powers and remedies available to the CFA, might be appropriate. Such an enforcement mechanism would only be used by the Commission as a last resort after all other avenues have been exhausted.


The Commission wishes to address this issue by imposing a condition of service pursuant to its jurisdiction under sections 24 and 46.5 of the Telecommunications Act (the Act).



The Commission is seeking comments on the condition described in paragraph 7. In addition, the Commission is interested in comments and proposals on any alternative enforcement mechanism to ensure that all TSPs comply with the terms and conditions of the contribution regime.


The condition of service being considered is as follows:

"A Canadian carrier, as a condition of offering and providing any telecommunications service to a telecommunications service provider (TSP) in Canada, is required to include in its tariffs, or in the case of a non-tariffed telecommunications service, in its contracts with TSPs the following condition:

The TSP shall comply with all the directives of the revenue-based contribution regime, set out in Decision CRTC 2000-745, as amended in decisions or interpretations issued by the Commission."


If a TSP fails to comply with the condition of service, that TSP would be deemed to be in default. The Commission, after an appropriate process outlined in paragraph 10, may order those Canadian carriers providing telecommunications service to suspend the provision of services to the defaulting TSP.


Parties are to take note that the Commission is not seeking comments on the terms and conditions outlined in the draft National Contribution Fund Administration Agreement. A separate process has been established for that purpose.


According to the draft National Contribution Fund Administration Agreement, once a TSP is in default, the CFA would follow the prescribed procedures to resolve the matter quickly. If the remedies available to the CFA are unsuccessful, the matter would then be referred to the Commission, via the Board of Directors of the Canadian Portable Contribution Consortium, for resolution. Pursuant to the contemplated condition, the Commission would then validate the information and, if it considers it appropriate, could direct that the facility-based carriers deny the defaulting TSP access to its services for the provision of telecommunications services.



Any person wishing to participate in this proceeding must notify the Commission of their intention to do so, by 31 July 2001. Those parties should contact the Secretary General by mail at CRTC, Ottawa, Ontario, KIA 0N2; by fax at (819) 953-0795; or by email at  They 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 or hard copy filings. The Commission will issue, as soon as possible, a complete list of interested parties and their mailing address (including their email address, if available), identifying those parties who wish to receive disk versions.


Parties may submit comments, serving a copy of their submission on all the parties on the interested parties list, by 31 August 2001. Parties may file a reply with the Commission, serving a copy on those parties who filed comments, by 10 September 2001.


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


Parties wishing to file electronic versions of their comments can do so by email at the address shown above, or on diskette.


The electronic version should be in the HTML format. As an alternative, those submitting comments may use "Microsoft Word" for text and "Microsoft Excel" for spreadsheets.


Please number each paragraph of your submission. In addition, please enter the line ***End of document*** following the last paragraph. This will help the Commission verify that the document has not been damaged during transmission.


The Commission will make submissions filed in electronic form available on its web site at  in the official language and format in which they are submitted. This will make it easier for members of the public to consult the documents.


The Commission also encourages interested parties to monitor the public examination file (and/or the Commission's web site) for additional information that they may find useful when preparing their submission.


Submissions may be examined or will be made available promptly upon request at the Commission offices during normal business hours:

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

Suite 520 - 10405 Jasper Avenue
Edmonton, Alberta T5J 3N4
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:

Date Modified: 2001-07-17

Date modified: