ARCHIVED - Telecom Decision CRTC 2003-8

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Telecom Decision CRTC 2003-8

Ottawa, 28 February 2003

Revised procedures for the revenue-based contribution regime

Reference: 8695-C53-01/02

In this decision, the Commission approves the revised procedures for the operation of the revenue-based contribution regime.


The Commission received an application by the Canadian Portable Contribution Consortium Inc. (CPCC), dated 4 November 2002, requesting approval of the revised procedures for the operation of the revenue-based contribution regime (the revised procedures).



The procedures for the operation of the revenue-based contribution regime (the original procedures) were developed through a consultative process of the telecommunications industry that was overseen by Commission staff. The Commission granted final approval to the original procedures in CRTC gives final approval to procedures for the revenue-based contribution regime, Order CRTC 2001-738, 21 September 2001.


Pursuant to section 1.4 of the original procedures, the CPCC may, with agreement of its members, amend the procedures, subject to the approval of the Commission.

Proposed amendments


The revised procedures include proposed amendments required to take into account elements in Changes to the contribution regime, Decision CRTC 2000-745, 30 November 2000, that only became effective in 2002, as well as, elements impacting the revenue-based contribution regime in the following Commission determinations:

Restructured bands, revised loop rates and related issues, Decision CRTC 2001-238, 27 April 2001, in which the Commission adopted a uniform approach to identify high-cost serving areas that would be eligible for subsidies from the national contribution fund (NCF) effective 1 January 2002.
Regulatory framework for the small incumbent telephone companies, Decision CRTC 2001-756, 14 December 2001, in which the Commission established, among other things, the following:

· regulatory regime for the small incumbent local exchange carriers (ILECs);

· annual subsidy amounts for each of the years 2002 to 2005 to be paid from the NCF; and

· remittance process prioritizing the payment of subsidy to the small ILECs.

Changes to the annual contribution reporting requirements, Telecom Decision CRTC 2002-35, 31 May 2002, in which the Commission simplified the annual contribution reporting requirements for those telecommunications service providers with less than $10 million of total operating revenues.


The revised procedures also include the following new measures:

· recovery, from a contributor, of the extra costs up to a maximum of $1,000 per month, incurred by the administrator of the NCF due to late filings;

· deferred payment arrangements negotiated with the administrator of the NCF, subject to CPCC approval, where a single payment in respect of an adjustment for a prior reporting period would cause undue financial hardship to a required contributor; and

· an annual report prepared by the administrator of the NCF to each contributing company, which identifies the allocation of contributors' respective payments into the NCF between operating expenses, GST, interest earned, miscellaneous items, and contribution to subsidy.


The Commission received no comments with respect to this application.

Commission determination


The Commission considers that the revised procedures are appropriate and consistent with the Commission's determinations regarding the operation of the revenue-based contribution regime and notes that the industry did not file any objections to the proposed amendments.


Accordingly, the Commission approves the revised procedures as filed by the CPCC on 4 November 2002. The revised Procedures for the operation of the revenue-based contribution regime can be found at the following Internet site:, or may be obtained at the Commission's headquarters public examination room in Gatineau.


The Commission notes that although the revised procedures identify Progestic International Inc. as the administrator of the NCF, in National contribution fund - Designation of administrator, Telecom Decision CRTC 2002-59, 24 September 2002, the Commission designated Welch Fund Administration Services Inc. as the administrator of the NCF, effective 1 January 2003.

Secretary General

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

Mise à jour : 2003-02-28

Date modified: