ARCHIVED - Order CRTC 2001-689

Order CRTC 2001-689

Ottawa, 31 August 2001

The Commission refrains from regulating Teleglobe's remaining tariffed services

Reference: 8640-T2-02/01

With this order, the Commission refrains from regulating Teleglobe's remaining tariffed services. However, the Commission will retain sufficient powers to protect the confidentiality of customer information and to impose conditions on the delivery of Teleglobe's services as may be warranted in the future.

Teleglobe's application

On 4 April 2001, pursuant to the Telecommunications Act (the Act) and Part VII of the CRTC Telecommunications Rules of Procedure, Teleglobe Canada Limited Partnership (Teleglobe) applied for forbearance from regulation of Teleglobe's remaining tariffed services and any similar services it may offer in the future.

Teleglobe requested complete and unconditional forbearance from sections 24, 25, 27, 29 and 31 of the Act.

Teleglobe also requested discontinuance of all ancillary forms of regulation applicable to the company pursuant to Telecom Decision CRTC 96-2, Teleglobe - Review of the regulatory framework, dated 2 February 1996, as amended. These consist of the requirements to file:

Teleglobe stated that it sent copies of its application to its competitors and customers. There were no interventions opposing the application. TELUS Communications Inc. wrote to support the application.

With the application, Teleglobe submitted a detailed market analysis of each of the company's remaining tariffed services in accordance with Telecom Decision CRTC 94-19, Review of regulatory framework, dated 16 September 1994. In this analysis, Teleglobe:

Teleglobe argued that in view of the availability of international facilities and service providers, it would not be necessary to limit forbearance to specific routes.

Analysis of the application

Based on the market analysis submitted by Teleglobe, and also on the fact that none of Teleglobe's customers, and no competing carrier, contested the company's evidence, the Commission finds that in the markets for Teleglobe's remaining tariffed services, there is sufficient competition to protect user interests. Therefore, the Commission is of the view that it is appropriate to forbear from regulation of these services pursuant to section 34(2) of the Act. Further, based on the market analysis submitted by Teleglobe, the Commission also finds that forbearance from regulation would not endanger the continuance of a competitive market for international telecommunications services originating or terminating in Canada, in accordance with section 34(3) of the Act.

Scope of forbearance

When forbearing from regulation, the Commission frequently finds it appropriate to retain some of its powers under section 24 of the Act to ensure that the confidentiality of customer information is protected, and to be able to impose conditions on service delivery that may be warranted in the future.

Teleglobe requested that the Commission forbear from section 24 of the Act in its entirety, arguing that user interests are protected without Commission imposed conditions, and that the confidentiality of customer information is already protected by the new privacy legislation, the Personal Information Protection and Electronic Documents Act.

However, the Commission has decided to retain sufficient powers under section 24 of the Act to ensure the continued application of existing conditions for confidentiality of customer information and continued protection of customer confidentiality in all future contracts and other arrangements for services which are forborne from pursuant to this application. Further, the Commission notes that Teleglobe is currently subject to a number of clear restrictions on its ability to disclose such information pursuant to section 15 of its Terms of Service. For example, the Terms require written customer consent to disclosure except in a limited number of situations that are clearly set out. It is not evident that the new privacy legislation would provide comparable protection to Teleglobe's customers.

Moreover, the company's plans for retail market entry are not known. In Telecom Decision CRTC 99-14, Teleglobe Canada Inc. - Forbearance for GlobeaccessTel and related matters, dated 28 September 1999, the Commission determined that Teleglobe should establish a Carrier Services Group (CSG) prior to entering the retail market. The Commission will retain sufficient powers under section 24 of the Act to ensure this and to be able to impose conditions on the delivery of Teleglobe's remaining tariffed services as may be warranted.

The Commission also considers it necessary to retain part of its powers under section 27(3) of the Act to ensure compliance with powers and duties not forborne in this order.

Reporting requirements

The Commission finds that with forbearance from rate regulation, several of Teleglobe's reporting requirements are no longer necessary, or can be simplified. Effective with the quarter following this order, the company will no longer be required to file the quarterly Telephone Services reports on year-to-date outward revenues, outward traffic and outward revenue per minute; the quarterly financial reports; and the annual reports on research and development expenditures. However, Teleglobe will be required, pursuant to section 24 of the Act, to file annual financial reports with the Commission.

Pursuant to section 34(1) of the Act, the Commission finds, as a question of fact, that to refrain from exercising its powers and duties under sections 24 (in part), 25, 29 and 31, and sections 27(1), 27(2), 27(3) (in part), 27(4), 27(5) and 27(6) of the Act to the extent set out in this order with respect to Teleglobe's remaining tariffed services would be consistent with the Canadian telecommunications policy objectives.

Pursuant to section 34(2) of the Act, the Commission finds as a question of fact that the provision of these services is sufficiently competitive to protect the interests of users.

Pursuant to section 34(3) of the Act, the Commission finds that to refrain from exercising the powers and performing the duties to the extent set out in this order would not likely impair the continuance of a competitive market for these services.

The Commission grants forbearance

The Commission therefore orders that:

Secretary General

This document is available in alternative format upon request and may also be examined at the following Internet site: www.crtc.gc.ca