ARCHIVED - Telecom Order CRTC 2002-334

Telecom Order CRTC 2002-334

Ottawa, 13 August 2002

TELUS Communications Inc.
Reference: Tariff notice 32

Large Capacity Digital Network Access Service Special Facilities Tariff

1.

The Commission received an application by TELUS Communications Inc. (TCI), under Tariff notice 32 (TN 32), dated 14 December 2001, to revise its Special Facilities Tariff (SFT) in order to introduce item 202, Customer Specific Large Capacity Digital Network Access Service. The new item relates to the provision of customer-specific large capacity digital network access arrangements to two customers, one in Alberta and another in British Columbia.

2.

Under this tariff item, TCI proposed to provide an optical fiber local access facility between each of the customers and their subscribers and the nearest TCI serving central office. In addition, TCI proposed to provide the associated optical electronic equipment at the customers' or their subscribers' service locations and the TCI serving central office to light the fiber facility and provide digital capacity at 1.5 Mbps Ethernet, 3.0 Mbps Ethernet, 10 Mbps Ethernet, 16 Mbps Token Ring, 100 Mbps Ethernet, 155 Mpbs OC-3 and gigabit Ethernet speeds.

3.

According to TCI, this service would cover facilities and equipment installed to provide service to the customers' or their subscribers' service locations which are inside the urban area served by the applicable TCI serving central office. Additional one-time charges would apply for constructing facilities to locations in the rural areas covered by the TCI serving central office.

4.

TCI stated that the interexchange facilities between the equipment located at the various TCI serving central offices throughout Alberta used in the provision of this service to the customers would be provided separately at General Tariff rates or other Special Facilities Tariff rates as applicable.

5.

The Commission notes that the proposed tariffs would provide an unspecified number of digital access services at a fixed price contract. The Commission finds that such services should instead be tariffed on the basis of a unit price for an access facility of a particular transmission speed, consistent with currently approved tariffs for such facilities. Moreover, given the demand information submitted by TCI in support of its application, the Commission finds that these services should be provided pursuant to general tariffs that are available to all service providers.

6.

In light of the foregoing the Commission denies TCI's application.

7.

The Commission directs TCI to file, within 14 days of the date of this order, a tariff application in order to provide large capacity digital network access that is in accordance with the Commission's findings set out in this order.

Violation of section 25 of the Telecommunications Act

8.

In a letter dated 17 July 2002, TCI acknowledged that it has been providing the services that are the subject matter of TN 32 in Alberta within the City of Edmonton since 30 July 1996 and elsewhere in Alberta since 8 August 1996. In both cases the services have been provided to TELUS Services Inc., a TCI affiliate. TCI stated that these services were essentially the same services as were previously provided pursuant to Special Assembly Item D-1100 in Alberta (exclusive of the City of Edmonton), and pursuant to Special Assembly Item 6515 within the City of Edmonton. Both special facilities tariffs were for a 60 month contract period. Item 6515 expired on 30 July 2001 and Item D-1100 expired on 8 August 2001.

9.

TCI stated that, subsequent to the expiry dates of Item 6515 and D-1100, it "inadvertently" and "in error" continued to provide the services without seeking Commission approval under section 25(1) or 25(4) of the Telecommunications Act (the Act).

10.

TCI also stated that, since the expiry of the tariffs, it has continued to provide the services on the same terms and conditions that were originally approved by the Commission. TCI indicated that it was preparing TN 32 during this period.

11.

The Commission notes that the service proposed under TN 32 is different from the expired services in that the number of access speeds is greater and the rates are different.

12.

The Commission finds that TCI has breached section 25(1) of the Act by providing non-forborne services otherwise than pursuant to a tariff filed with and approved by the Commission. TCI's regulatory non-compliance is unacceptable and inconsistent with fair and sustainable competition.

13.

Accordingly, the Commission orders TCI to cease and desist from providing any non-forborne service in Alberta for which there is no approved tariff within 60 days from the date of this order.

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