ARCHIVED - Telecom - Commission Letter - 8638-C12-45/00 - Decision 2000-745 -Changes to the Contribution Regime - Contribution Implementation Co-ordinationCommittee (CIC)

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Our file: 8638-C12-45/00

Ottawa, 21 February 2001

To: Distribution List


Subject: Decision 2000-745 - Changes to the Contribution Regime - Contribution Implementation Co-ordination Committee (CIC)

The CIC Working Groups have filed for consideration by the Commission a number of reports produced by the CIC Groups on New Central Funds, Revenue Consistency and Bundling and Other Exemption Working Groups. The reports were discussed by all participants at a joint meeting of the CIC and the CRTC Interconnection Steering Committee (CISC) on 20 February in Hull, Quebec. These reports are also available on the CRTC Website.

The following consensus reports have been submitted to the Commission with the recommendation that they be approved by the Commission. The Commission will consider the reports and intends to issue its decision as soon as possible.

1. New Central Funds Group

  • Establishment of New Central Funds and CPCC/CFA Agreements Implementation

2. Revenue Consistency Group - Definitions

  • Retail Paging Services
  • Inter-Carrier Payments
  • Contribution Payments
  • Retail Internet Services
  • Operating Revenues
  • Non-Canadian Revenues
  • Canadian Telecommunications Service Revenues

3. Bundling and Other Exemptions Group

  • Elimination of Non-Contribution Eligible Revenues from Bundles

In addition, the Revenue Consistency Working Group and the Bundling and Other Exemptions Working Group, filed reports identifying disputes that have arisen among members of the Working Groups. These reports were discussed at the 20 February meeting of CIC and CISC Members and have now been filed with the Commission for resolution.

In accordance with the process announced in a letter dated 9 February 2001 parties may file by 27 February 2001 comments with the Commission with respect to the following issues in dispute:

  1. Revenue Consistency Group #4 - Definition of Terminal Equipment
  1. Should a terminal equipment subsidy be recognized in the calculation of the terminal equipment deduction from contribution-eligible Canadian telecommunications service revenues?

    In other words should an exemption be calculated on the basis of the full cost of the terminal equipment, rather than the revenue generated by the sale or lease or other contracted use?

  2. If the subsidy is recognized, should it be recognized only in the case of wireless handsets?
  3. If the subsidy is recognized, what methodology should be employed in calculating the deduction?
For the purpose of defining Canadian non-telecommunications services, should the definition of "telecommunications service" be based on section 2 or section 23 of the Telecommunications Act.
  1. Bundling and Other Exemptions - Definition of "Bundle".

Should the definition

  1. be limited to a situation where one rate covers a number of products or services, or
  2. include the situation in (i) and extend to any situation where the price of a product or service is in any way dependent on the use or purchase of another good or service.

All documents that have been submitted to date to the CIC with respect to each dispute will form part of the record of the dispute to be considered by the Commission.

All documents to be filed with the Secretary General must be received by 27 February 2001 and not merely sent by that date.

Yours sincerely,

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

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