ARCHIVED - Telecom - Commission Letter - 8695-C12-06/99 - Basic InternationalTelecommunications Service - Amendments to conditions of licence

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Our File number: 8695-C12-06/99

Ottawa, 30 April 2001

To: Distribution list Class B

Re: Basic International Telecommunications Service - Amendments to conditions of licence

This letter serves to notify Class B international telecommunications service providers that the Commission has, pursuant to section 16.3(3) of the Telecommunications Act, amended the conditions of licence to require Class B licensees to report and remit contribution.

Changes to the contribution mechanism

As you are aware, the Commission, in its Decision CRTC 2000-745, Changes to the contribution regime, dated 30 November 2000, replaced the per-minute contribution regime with a revenue-based mechanism and broadened the base of contribution-eligible services. Under this new rule, effective 1 January 2001, Class B licensees are required to report and remit contribution.

Recognizing the extent of procedural changes necessary to implement the new mechanism, the Commission established task working groups to assist with implementation details such as the development of final remittance forms and procedures, revision of current industry agreements, development of procedure for the termination of the current per-minute mechanism, and development of new procedures and required system changes. Although the working groups are still active, most of the implementation details have been addressed for a smooth transition to the new regime.

Accordingly, the following condition is added to Class B conditions of licence, effective 1 January 2001:

(a) The licensee shall report and remit contribution to the Central Fund Administrator, based on its contribution-eligible revenues, as may be defined by the Commission, from time to time, and in accordance with any procedures that the Commission may establish, from time to time.

(b) The licensee shall file, by 31 March of each year, previous year's financial information, accompanied by a compliance statement attesting to the accuracy of the report.

(c) The licensee shall comply with any filing requirements that the Commission may order or establish from time to time.

(d) The licensee shall put in place auditable controls to ensure that 1) Canadian telecommunications service revenue is properly reported for the purposes of determining its contribution-eligible revenues, and 2) only properly exempt revenue is reported and excluded from the revenues used to calculate its contribution payments.

(e) The licensee shall comply with any audit requirements that the Commission

may order or establish from time to time, including any requirement or order to assume all or part of the associated costs.

You will find enclosed for your file, a copy of the amended conditions of licence. If you have any questions with regard to the above, please contact either Michel L. Spencer or Pamela Cormier of Commission staff at the appropriate telephone number noted below.

Yours sincerely,

Shirley Soehn
Executive Director, telecommunications


cc: Michel Spencer (819) 997-4590

Pamela Cormier (819) 953-9675

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