ARCHIVED - Telecom Decision CRTC 2003-20

Telecom Decision CRTC 2003-20

Ottawa, 26 March 2003

Saskatchewan Telecommunications

Reference: Tariff Notice 23, 8340-S22-0831/00 and 8340-S22-0831/01

Provincial Enhanced 9-1-1 Service

In this decision, the Commission approves revisions to Saskatchewan Telecommunications' (SaskTel's) tariff for Provincial Enhanced 9-1-1 Service, including revised rates of $0.2075 per working telephone number and $0.1038 per wireless working telephone number, and a revised rate structure that is consistent with the rate structure established in 9-1-1 Service - Rates for Wireless Service Providers, Centrex Customers and Multi-Line Customers/Manual Access to the Automatic Location Identification Database, Telecom Decision CRTC 99-17, 29 October 1999.

The Commission also approves, with modifications, SaskTel's standard 9-1-1 agreement and standard agreement for the provision of manual access to the Automatic Location Identification database.

The Commission requests that SaskTel comment on its preliminary views that: (i) SaskTel's four executed 9-1-1 agreements should be modified to remove any reference to the requirement to provide or maintain Public Safety Answering Point equipment; and (ii) the limitation of liability provisions in SaskTel's standard 9-1-1 agreement and four executed 9-1-1 agreements should be consistent with the limitations of liability in SaskTel's Terms of Service.

Introduction

1.

On 3 December 2001, Saskatchewan Telecommunications (SaskTel) filed an application, Tariff Notice 23, to revise the rate structure of General Tariff item 140.05, Provincial Enhanced 9-1-1 Service (9-1-1 service). SaskTel submitted that the proposed rate structure was consistent with the rate structure established in 9-1-1 Service - Rates for Wireless Service Providers, Centrex Customers and Multi-Line Customers/Manual Access to the Automatic Location Identification Database, Telecom Decision CRTC 99-17, 29 October 1999 (Decision 99-17).

2.

SaskTel also filed its standard Special Agreement - Provincial E9-1-1 service (standard 9-1-1 agreement) for Commission approval, as well as an Amending Agreement to the standard 9-1-1 agreement for the provision of manual access to the Automatic Location Identification (ALI) database (manual ALI agreement).

3.

Comments were received from Rogers Wireless Inc. (Rogers) and Microcell Telecommunications Inc. (Microcell) on 6 and 19 December 2001, respectively. SaskTel filed reply comments on 27 December 2001. Microcell filed further comments on 4 January 2002. SaskTel filed further reply comments on 22 January 2002. SaskTel was asked interrogatories on 22 March 2002 and responded on 23 April 2002.

Background

4.

SaskTel introduced its 9-1-1 service in 1995. On 30 June 2000, SaskTel came under the Commission's jurisdiction. In Tariffs and associated form agreements, Order CRTC 2000-604, 29 June 2000 (Order 2000-604), the Commission approved all of SaskTel's tariffs and associated agreements, including four executed agreements for 9-1-1 service (executed 9-1-1 agreements).

5.

SaskTel's current 9-1-1 rates per network access per month are set out below:

Residential individual network access

$0.50

Business individual network access

$0.36

Multi-line network access

$1.40

Centrex access

$0.36

$0.36

$1.40

6.

SaskTel's current 9-1-1 rates were based on an economic study conducted in 1995 (the 1995 study) that included costs that other incumbent local exchange carriers (ILECs) do not include in their 9-1-1 rates. Specifically, the 1995 study included costs for the provision and maintenance of Public Safety Answer Point (PSAP) equipment, whereas the other ILECs' provincial 9-1-1 service rates do not recover costs for PSAP equipment, but only recover costs for equipment up to and including the point of the jack within the PSAP.

7.

SaskTel provides a billing and collection service whereby it bills and collects the provincial 9-1-1 call answer service fee (Sask911 fee). The Sask911 fee recovers the province's costs for operating and staffing the provincial 9-1-1 call answer centres. While the charge for providing the billing and collection service (billing and collection fee) is subject to Commission approval, the Sask911 fee itself is set by the province of Saskatchewan and is not subject to Commission approval.

8.

In Decision 99-17, the Commission established a new rate structure for the ILECs that charged for provincial 9-1-1 service. Decision 99-17 did not apply to SaskTel because SaskTel was not, at that time, regulated by the Commission. Under this new rate structure, wireless service providers (WSPs) are charged on a per working telephone number basis, but they receive a 50% discount on the 9-1-1 rate charged to other customers because they do not receive ALI functionality. ALI functionality provides the name, telephone number, service address and class of service associated with a 9-1-1 call to the PSAP. Calls from a wireless phone only provide the voice connection and class of service to the PSAP.

9.

In Decision 99-17, the Commission directed the ILECs to recalculate their 9-1-1 rates on an annual basis in accordance with a formula. Under the formula, the 9-1-1 rate is recalculated to take into account the new estimate of demand including that of the WSP working telephone numbers. The Commission modified the formula in Rates modified for province-wide 9-1-1 service, Order CRTC 2000-630, 6 July 2000 (Order 2000-630).

Application and determinations

10.

The Commission notes that parties' comments related to three main areas of concern: (i) the calculation of the revised 9-1-1 rate; (ii) the application of the 9-1-1 charge to WSP interconnection trunks; and (iii) the terms and conditions associated with billing and collection. No comments were received with respect to the proposed 9-1-1 agreements.

Calculation of the 9-1-1 rate

11.

Sasktel indicated that, in order for the change in rate structure to be revenue neutral, it had recalculated its 9-1-1 rates using a formula that was generally consistent with the formula set out in Order 2000-630. SaskTel stated that, in applying this modified formula, it used an estimate of WSP working telephone number count as it was unable to obtain the actual number counts from some of the WSPs operating in its territory. Sasktel indicated that its calculations resulted in proposed rates of $0.36 per working telephone number and $0.18 per WSP working telephone number.

12.

Rogers submitted that SaskTel should be directed to recalculate its rates on the basis of actual working telephone number counts provided by WSPs, noting that this would be consistent with the formula set out in Order 2000-630. Microcell requested that the Commission ensure that the wireless market share estimates used by SaskTel were reliable.

13.

In reply, SaskTel stated that it would be willing to use actual WSP number counts, but that it could not obtain number counts from all of the WSPs operating in its territory.

14.

In response to an interrogatory, SaskTel filed a new Phase II cost study which excluded the PSAP equipment and maintenance costs. SaskTel submitted that, although it excluded this information from its study, in its view, these costs should have been included because it was obliged to provide and maintain PSAP equipment under its four existing 9-1-1 agreements.

15.

The Commission notes that SaskTel's current 9-1-1 rates range from $0.36 to $1.40, depending on the category of customer. The Commission notes that, in this proceeding, SaskTel proposed a uniform rate structure with a lower rate for WSPs, which is consistent with the rate structure established for the other ILECs' provincial 9-1-1 services. The Commission considers that the proposed change in rate structure allows for cost recovery on a more equitable basis as all customers are charged at the same rate, except for WSPs, which are charged at a lower rate because they do not receive ALI functionality. The Commission, therefore, finds that the proposed change in rate structure is appropriate.

16.

The Commission considers that, instead of using a formula to adjust the existing 9-1-1 rates, which were established before SaskTel came under federal jurisdiction, it is appropriate to set new 9-1-1 rates based on the new Phase II cost study. Based on the new Phase II cost study, the Commission approves 9-1-1 rates of $0.2075 per working telephone number, and $0.1038 per WSP working telephone number equipped for outward calling to the public switched telephone network (PSTN).

17.

Consistent with previous Commission determinations, the Commission is of the view that the provision of forborne terminal equipment should not be bundled with the provision of 9-1-1 service. The Commission therefore considers that the PSAP hardware, software and maintenance costs should not be recovered through the 9-1-1 rate.

18.

For billing purposes, the Commission directs the WSPs to provide to SaskTel, on a monthly basis, a count of their wireless working telephone numbers equipped for outward calling to the PSTN in SaskTel's operating territory.

WSP interconnection trunks

19.

Microcell requested that the Commission direct SaskTel to include a notation in its tariff stating that WSP interconnection trunks were not subject to 9-1-1 charges. Microcell argued this on the basis that Bell Canada's 9-1-1 tariff includes a notation at item 1400.6(d) stating that: "The DS-0 charge is not applicable to DS-0s used exclusively to deliver calls originated by WSP customers to the PSTN."

20.

In reply, SaskTel indicated that it would be prepared to include a note to that effect in its tariff.

21.

The Commission considers it appropriate for WSP interconnection trunks not to be subject to 9-1-1 charges. In this regard, the Commission notes that SaskTel agreed to include a notation to this effect in its tariff. Accordingly, the Commission directs SaskTel to add a note to its tariff stating that: "WSP interconnection trunks used exclusively to deliver calls originated by WSP customers to the PSTN are not subject to 9-1-1 charges."

Billing and collection

22.

Microcell noted that item 140.05.3 of SaskTel's 9-1-1 Tariff (item 140.05.3), at paragraph 3, reads as follows:

The Company charges the Sask911 Call Taking Fee to those wireline customers whose service is able to access the Sask911 System. Competitive Local Exchange Carriers (CLECs) that provide service are required by the Sask911 Fees Regulations to bill the Sask911 fee and remit to SaskTel the amount of such fees. Call taking fees remitted to SaskTel are deposited to the Sask911 account less a SaskTel billing and collection fee of $0.07 per month per exchange access.

23.

Microcell stated that in all other provinces where local or provincial authorities collect a 9-1-1 call answer fee, namely Alberta, British Columbia, Nova Scotia and Quebec, the local/provincial authority contracts directly with CLECs for the billing and collection of fees from the carriers' subscribers. Microcell submitted that, in all these cases, it is the serving carrier that has the right to bill and to retain the incremental billing and collection fee as it is the serving carrier that bears any costs associated with billing and collecting the 9-1-1 call answer fee from its own subscribers.

24.

Microcell submitted that there was no justification for SaskTel to retain the billing and collection fee in respect of amounts collected from other carriers' subscribers. Accordingly, Microcell requested that the Commission direct SaskTel to amend item 140.05.3 to remove any obligation on CLECs to remit the Sask911 fee to SaskTel.

25.

In reply, SaskTel submitted that item 140.05.3, which requires CLECs to remit the Sask911 fees to SaskTel, reflects the obligations imposed upon SaskTel and CLECs by the Government of Saskatchewan under provincial legislation. Specifically, clause 3(2) of the Sask911 Fees Regulations, made pursuant to the Saskatchewan Telecommunications Act, states:

All telecommunications operators that provide local telephone services in Saskatchewan are required to bill their connected customers for the Sask911 fees set out in Table 2 and remit to SaskTel, in accordance with the Act, the amount of the fees billed to connected customers.

26.

SaskTel stated that the provincial legislation also imposed obligations upon SaskTel to charge the Sask911 fee to those customers and operators of telecommunications facilities or services who were required by the regulations to pay the Sask911 fee and to place those fees in the Sask911 account less any reasonable amount SaskTel may retain for collecting the Sask911 fees.

27.

In response to SaskTel's reply, Microcell submitted that item 140.05.3 contravened the Commission's regulatory framework in two respects: first, by designating the ILEC as the obligatory collection agent for all other Local Exchange Carriers (LECs), it contravenes the fundamental principle of co-carrier status between LECs established in Local Competition, Telecom Decision CRTC 97-8, 1 May 1997, and second, by providing compensation ($0.07 per subscriber per month) to the ILEC for a service that the ILEC does not even provide, that is, billing of fees to CLEC end-users, it contravenes the requirement for rates to be just and reasonable.

28.

Microcell further submitted that the Commission was under no obligation to approve a tariff which ran counter to its own regulatory framework, regardless of whether SaskTel believed it to be consistent with provincial legislation. Microcell indicated that the wording of the tariff also removed any incentive for the Government of Saskatchewan to enter into discussions with non-incumbent carriers towards a more appropriate and equitable arrangement.

29.

In reply, SaskTel requested that the Commission disregard Microcell's intervention, submitting that Microcell's comments are not related to the subject matter of the application.

30.

The Commission notes that CLECs in other jurisdictions remit the amounts they collect for the governmental authority responsible for 9-1-1 service directly to the governmental authority, not to the ILEC. The Commission considers it to be inappropriate for SaskTel's tariffs to require CLECs to remit to SaskTel the Sask911 fees that they have collected from CLEC end-users. The Commission also considers that SaskTel should not collect a monthly billing and collection fee of $0.07 per CLEC end-user, since it is the CLEC, and not SaskTel, that collects the provincial fee from the CLEC end-users.

31.

Accordingly, the Commission directs SaskTel to replace the third paragraph of tariff item 140.05.3 with the following:

The Company charges the Sask911 Call Taking Fee to its wireline customers whose service is able to access the Sask911 System. Call taking fees remitted to SaskTel are deposited to the Sask911 account less a SaskTel billing and collection fee of $0.07 per month per exchange access.

9-1-1 agreements

PSAP equipment

32.

As stated above, the Commission considers that PSAP hardware and software and PSAP maintenance costs should not be recovered through the 9-1-1 rate. The Commission notes that SaskTel may enter into a separate agreement for the provision or maintenance of PSAP equipment. The Commission, therefore, directs SaskTel to amend its standard 9-1-1 agreement to remove any reference to the requirement for SaskTel to provide or maintain equipment past the point of the jack within the PSAP given that the terminal equipment is not to be bundled with the service.

33.

The Commission is of the preliminary view that SaskTel should amend its four executed 9-1-1 agreements, approved in Order 2000-604, to remove any reference to the requirement for SaskTel to provide or maintain equipment past the point of the jack within the PSAP. SaskTel is requested to comment on the Commission's preliminary view by 25 April 2003. If SaskTel agrees with the Commission's preliminary view, it is to file the revised agreements with the Commission by 25 April 2003. SaskTel is to provide a copy of its comments or the revised agreements to the other parties to the agreements.

Limitation of liability

34.

Subsection 11.5 of the proposed standard 9-1-1 agreement states:

In the event of failure of the Service by any cause whatsoever or failure of the Service to properly function for a particular emergency call by any cause whatsoever, SaskTel shall not be liable to the Customer or any other person for any damages or loss of any kind, including without limitation, damage or loss to property, or for personal injury or death, or for any consequential or indirect damages.

35.

The Commission notes that the standard 9-1-1 agreements for other ILECs incorporate the limitation of liability provisions of their Terms of Service. SaskTel's Terms of Service limit liability for negligence, except with regard to physical injuries, death or damage to customer premises or property. SaskTel's Terms of Service also state that SaskTel's liability is not limited in cases of deliberate fault, gross negligence, or anti-competitive conduct on the part of SaskTel.

36.

The Commission is of the preliminary view that SaskTel should amend the limitation of liability provisions in its standard 9-1-1 agreement and four executed 9-1-1 agreements to be consistent with the limitation of liability provisions in its Terms of Service. SaskTel is requested to comment by 25 April 2003 on the Commission's preliminary view. If SaskTel agrees with the Commission's preliminary view, it is to file the revised agreements with the Commission by 25 April 2003. SaskTel is to provide a copy of its comments or the revised agreements to the other parties to the executed agreements.

Other matter

37.

The Commission notes that the second paragraph of the proposed manual ALI agreement indicates that Decision 99-17 applied to SaskTel. As Decision 99-17 does not apply to SaskTel, the Commission directs SaskTel to amend its manual ALI agreement by replacing the second paragraph with the following:

WHEREAS in Telecom Decision 99-17, the Canadian Radio-television and Telecommunications Commission (CRTC) considered that it would be in the public interest to permit manual access to the Automatic Location Identification (ALI) database in certain circumstances with appropriate safeguards.

Summary of Commission directions

38.

In light of the above, the Commission:

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