ARCHIVED - Telecom - Commission Letter - 8626-T62-01/00

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Our file: 8626-T62-01/00

Ottawa, 9 February 2001


Mr. Claude Fréchette
Télécom Expert Technologies Inc.
18 Des Cerisiers
St. Etienne, Quebec
G6J 1L7

Dear Mr. Fréchette:

Subject: Application by Télécom Expert Technologies Inc. for Exemption from Contribution Charges dated 14 November 2000

By fax dated 14 November 2000, Télécom Expert Technologies Inc. (Télécom Expert) applied for a contribution exemption for certain local services used to provide data services. Télécom Expert provided an affidavit dated 14 November 2000 affirming interconnecting circuits in several Bell Canada (Bell) exchanges are used by it solely for the purpose of providing data services and are not used to offer voice transmission services to its customers.

By letter dated 29 November 2000, Bell noted that pursuant to Scope of IX Contribution Paying Services, Télécom Order CRTC 97-590 dated 1 May 1997, paragraph 70, line-side connections to the Public Switched Telephone Network which are used to connect to interexchange data networks can be subject to contribution charges. Accordingly, Bell stated that the contribution exemption for domestic data services no longer applies.

Bell understood that Télécom Expert might be reselling certain of Bell's local services for the purpose of reading meters. In this case, Bell stated that the use of interconnecting circuits for this purpose might be eligible for an exemption for local resale under certain conditions.

Bell noted that the provision of an affidavit to support an exemption for local resale purposes should include the following information to satisfy the evidentiary requirements for an exemption. It must clearly identify the circuits for which the exemption is requested, such that Bell can verify its records with respect to such circuits. Further, the affidavit should confirm that no local or interexchange private line services are connected to the local interconnecting circuits to permit direct access to interexchange networks provided by Télécom Expert or any other affiliated or non-affiliated long distance network provider.

In light of the foregoing, Bell submitted that the Commission should, prior to rendering a decision, require clarification from Télécom Expert with respect to the interconnecting circuits in question. This may require the provision of a satisfactory affidavit, if the configuration is eligible for a contribution exemption. Bell stated that it reserved the right to provide additional comments in response to any further submission from Télécom Expert.

Commission staff agrees with Bell's submission since it conforms to Commission precedent set in similar cases. We note that we have contacted you by telephone on 21 December 2000, and 4 and 8 January 2001 requesting that you provide the evidence suggested by Bell. We have not yet received the evidence in question. Accordingly, Commission staff plans on taking no further action with your application, and with this letter closes the file.

Commission staff notes that Télécom Expert has not filed a report as required by Changes to the contribution regime, Télécom Decision 2000-745, paragraph 128. Pursuant to this decision, you are required to file your estimated ttelecommunications services revenues for 2000. The deadline for this report was 15 January 2001 should you required a copy of the reporting form, you can find it on our website at:

Yours sincerely,

Scott Hutton
Director - Efficiency and Expenditure Analysis
(819) 997-4573

c.c.: Don Heale, Bell Canada
        Hugh Thompson, CRTC, (819) 953-6081

Date Modified: 2001-02-09

Date modified: