ARCHIVED - Telecom - Commission Letter - 8628-C12-02/99  -  8695-C12-06/99-  Basic International Telecommunications Services - Amendments toconditions of licence

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Our File numbers:

8628-C12-02/99 &

Ottawa, 30 April 2001

To: Distribution list Class A licensees

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

This letter serves to notify Class A basic international telecommunications service providers that the Commission has, pursuant to section 16.3(3) of the Telecommunications Act, amended the licence conditions regarding the reporting of basic quarterly minutes (condition 2) and the reporting of contribution (condition 3).

1 - Changes to reporting requirements (condition 2)

In Order CRTC 2001-4, Changes to reporting requirements of class A licensees, dated 11 January 2001, the Commission concluded, amongst other things, that quarterly reports of basic international traffic were of insignificant benefit in detecting anti-competitive behaviour. Accordingly, the Commission determined that the filing of quarterly traffic reports was not necessary and instructed Class A licensees, until they received a list of amended licence conditions, to:

cease filing quarterly reports on basic international traffic for traffic subsequent to the third quarter of 2000; and

retain the quarterly data on basic international minutes until future reporting requirements have been determined in the proceeding initiated by PN 2000-175, Monitoring the Canadian telecommunications industry.

Accordingly, the Commission has, effective 11 January 2001, amended condition 2 to read as follows:

" 2. The licensee shall retain until future notice all data with respect to basic international traffic that the licensee (i) transports between Canada and another country using circuit switching protocol on telecommunications facilities operated by the licensee, whether those facilities are owned by the licensee or leased by the licensee from a separate facilities provider, and/or (ii) converts from circuit-switched minutes originating in Canada to non-circuit switched traffic, or converts from non-circuit switched traffic to circuit switched minutes terminating in Canada, regardless of whether the licensee is responsible for international transport. The licensee is to retain data so that it can provide details of the international traffic, broken down by the number of outbound (Canadian originating) and inbound (Canadian terminating) minutes, indicating the country of ultimate destination or origin."

2 - Changes to the contribution mechanism (condition 3)

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 which became effective 1 January 2001.

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 Commission has, effective 1 January 2001, amended the conditions of licence on contribution to read as follows:

3. (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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