ARCHIVED - Telecom Decision CRTC 2002-40

Telecom Decision CRTC 2002-40

Ottawa, 12 July 2002

Bell Canada - Megalink service

Reference: Tariff notice 6609

Bell Canada provides Megalink service to customers for the digital transmission of information between Bell Canada's central office and the customer's premises. In this decision, the Commission denies Bell Canada's proposed changes to its Megalink service tariff that would prohibit the use of Type A links for certain purposes. In addition, the Commission directs Bell Canada to issue a revised tariff page that addresses the use of public switched telephone network (PSTN) connectivities and Type A links in the context of its Megalink service.

The application

1.

The Commission received an application by Bell Canada dated 17 August 2001 to revise Note 7 of its General Tariff Item 5201, Megalink service, to read as follows:

Type A Links provide the software, translations and other switched resources needed to route calls in both directions between a Megalink access and one or more DS-0 channels associated with the dedicated network service to which the channels are connected. The DS-0 channels must be equipped with Common Channel Signalling #7. Type A Links may not be used as an alternative to PSTN Connectivities for purposes of accessing the Company's or a competitor's basic message toll service offerings.

Background

2.

Megalink is an access service provided by Bell Canada between a Bell Canada central office (CO) and terminal equipment on the premises of an individual, a business or a competitive local exchange carrier (CLEC).

3.

Under Bell Canada's tariff, the Megalink access service is provided in conjunction with the following types of links: public switched telephone network (PSTN) connectivity, Toll-free service, 900 Service and Type A.

4.

Currently, in Bell Canada's General Tariff, Note 7 of Item 5201 reads as follows:

Type A Links provide the software, translations and other switched resources needed to route calls in both directions between a Megalink access and one or more DS-0 channels associated with the connected service. The DS-0 channels must be equipped with Common Channel Signalling #7.

Bell Canada's position

5.

Bell Canada submitted that, as a result of recent misunderstandings regarding the use of Type A links, it was appropriate to clarify that Type A links are used to connect to Bell Canada or CLEC- provided dedicated network services and that these links cannot be used as an alternative to PSTN connectivities to access Bell Canada's or a competitive primary interexchange carrier's basic message toll service offerings.

6.

Bell Canada submitted that the proposed revision was consistent with its original Megalink filing dated 28 November 1990 (the original Megalink filing) as well as its 11 April 1995 Megalink filing (the 1995 filing). Bell Canada argued that the services referenced in both of these filings were limited to dedicated network services and that, by extension, reference to the use of Type A links to connect to services was limited to dedicated toll or other network service applications.

Comments on the application

7.

In its comments dated 27 September 2001, Call-Net Enterprises Inc. (Call-Net) argued that the tariff revisions proposed by Bell Canada were inappropriate and should be denied. Call-Net argued that the only issue in determining whether PSTN charges apply is whether or not the Megalink channel accesses the PSTN in the CO in which the Megalink channel terminates. In addition, Call-Net submitted that the location of a Megalink channel's ultimate termination point and the purpose for which the channel is used are irrelevant to whether or not the Type A link charge applies.

8.

Call-Net argued that Megalink is an access facility that connects a customer location to a telephone company CO. In Call-Net's view, these access facilities can be configured to provide access to the local PSTN in which case, PSTN access charges would apply. Call-Net submitted that it was its understanding that where access is provided to dedicated channels, PSTN charges would not apply. Call-Net also stated that it understood that access to dedicated channels is provided through Type A links. Where the Megalink channel is effectively hard-wired through the CO to a dedicated outgoing channel, the PSTN access charge would not apply and the Type A link charge would apply.

Reply comment

9.

In reply comments dated 23 November 2001, Bell Canada argued that Call-Net has an erroneous view of how Type A links are used and how they have been provided since their inception. Bell Canada submitted that, as such, Call-Net has incorrectly assumed that its particular circuit configuration entitles it to use Type A links.

10.

Bell Canada argued that Call-Net missed the point that PSTN connectivities and Type A links are used to connect to a service and not to a facility or channel, as Call-Net suggested. In Bell Canada's view, Type A links are used to access the company's or a competitor's dedicated toll services or other dedicated services, whereas PSTN connectivities are used to access local exchange service and basic message toll services.

11.

Bell Canada submitted that the type of facility or channel used to complete connections is irrelevant to the actual service for which the connection is being sought via the Type A link. In Bell Canada's view, the facility or channel is merely used as the transport vehicle between the company's CO and the competitor's office where the connection for the competitor's service is located. Bell Canada also argued that the Type A link configuration and functionality are different than those of a PSTN connectivity and do not support local and basic message toll calling.

12.

Bell Canada further submitted that if the Commission were to allow Type A links to be used in order to access Bell Canada's and competitors' basic message toll services, the Commission would be approving the use of two tariff elements with different rates within the same service for accessing the local exchange and basic message toll networks. In Bell Canada's view, this would force it to reconfigure such links and add the required functionality in order to support basic message toll calls.

Commission findings and determinations

13.

The Commission notes that in its original Megalink filing, Bell Canada proposed and received approval for PSTN connectivity links and links for specific services. The Commission considers there was a clear distinction in the tariff between PSTN connectivity links and other types of links. The Commission also notes that when Bell Canada proposed the generic type of Type A links in the 1995 filing, PSTN connectivity links were again distinguished from other types of links. In the Commission's view, Bell Canada has always maintained the distinction between the services connected through the PSTN and other services that are not connected to the PSTN. The Commission considers that this distinction continues to be valid today.

14.

The Commission also notes that the proposed revised wording of Note 7 in Item 5201 of Bell Canada's General Tariff - Megalink service provides that "Type A Links may not be used as an alternative to PSTN Connectivities for purposes of accessing the Company's or a competitor's basic message toll service offerings." The Commission agrees with the proposed revised wording insofar as it relates to PSTN connectivities to Bell Canada's basic message toll services.

Regarding access to a competitor's basic message toll service offering, however, the Commission considers that this need not always be provided through Bell Canada's PSTN. In the Commission's view, access to a competitor's basic message toll service may also be available using a Megalink access facility and a Type A link in the Bell Canada CO to connect to a facility connected to the competitor's location. As the proposed revised wording of Note 7 in Item 5201 of Bell Canada's General Tariff - Megalink Service would foreclose such an alternative, the Commission does not consider it to be acceptable.

16.

The Commission disagrees with Bell Canada's submission that if its application were to be denied, there would in effect be two tariffed rates within the same service for access to Bell Canada's local exchange network and basic message toll services. In particular, the Commission finds that the two tariffed rates clearly apply in different circumstances. If the access facility connects to Bell Canada's local exchange service or basic toll services, the PSTN connectivity rate would apply. However, when the access facility does not connect to Bell Canada's local exchange service or basic toll services, the Type A link rate would apply. The Commission notes that the Toll-free service and 900 Service links identified in the Megalink tariff are not affected by these findings.

17.

Based on the above, the Commission denies Bell Canada's application. In addition, the Commission directs Bell Canada to issue within 30 days of the date of this decision revised tariff pages for Item 5201 of Bell Canada's General Tariff - Megalink service, to include the following:

Note 8: Type A links may not be used as an alternative to PSTN connectivities for connections to the Company's local exchange network or its basic message toll services.

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