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Letter

Our Files: 8740-B2-200309494
8740-B2-200309486
8740-B2-200308462
8740-B2-200304254
8740-B2-200303397

Ottawa, 9 September 2003

Mr. David Palmer
Director, Regulatory Matters
Bell Canada
Regulatory Matters
105, rue Hotel de Ville
6ième étage
Hull, QC J8X 4H7

Dear Mr. Palmer:

Re: Bell Canada - Customer specific dark fibre tariffs

Bell Canada proposed Special facilities tariffs for private optical fibre networks in Tariff Notices 6757, 6761, 6762 and in Tariff Notices 6734 and 6740.

In Tariff filings related to the installation of optical fibres, Telecom Decision CRTC 97-7, 23 April 1997 (Decision 97-7), the Commission directed Bell Canada to file General Tariffs for intra-exchange optical fibre. In Decision 97-7, the Commission determined that where facilities were not available or where facilities would have little economic reuse value, Special Facilities Tariffs would be appropriate. The Commission however determined that the companies would have to justify in such tariff applications why a Special Facilities Tariff was necessary, provide facility distances and provide details for any extraordinary costs. In Decision 97 7, the Commission also considered that Special Facilities Tariff rates for optical fibre should be not less than General Tariff rates for the same facility distance. Further, the Commission determined that the costing of optical fibre should reflect General Tariff rates, and, where no General Tariffs were available, General Tariff rates should be filed at the same time as the proposed rates for the customer-specific tariff offering.

In Xit Télécom v. Bell Canada - Provision of fibre optic private networks, Telecom Decision CRTC 2003-59, 22 August 2003 (Decision 2003-59), the Commission directed Bell Canada to file proposed inter-exchange dark fibre tariffs within 20 days and to apply the terms and conditions of the General Tariff, when approved in its customer-specific special facilities tariffs for dark fibre projects. In Decision 2003-59, the Commission determined that where facilities were not available and construction had to be undertaken to provide service to a particular customer, the rates for dark fibre facilities should not be less than the General Tariff rates.

With respect to the private fibre networks proposed in the above-noted tariff notices, Bell Canada is to file by no later than 30 September 2003 the following information for each customer-specific contract that is the subject of the above tariff notices: the average number of fibre strands, the total distance covered by the fibre cable for each of intra-exchange and inter-exchange fibre expressed in routed strand metres. For each contract, for each of the intra-exchange optical fibre portion and the inter-exchange portion of the private fibre network provided, the company should demonstrate that the proposed one-time rate for the average number of fibres provided, when it is unitized on a per metre monthly basis, matches or exceeds the corresponding General Tariff monthly rate. For arrangements of five years or less, the intra-exchange component is to reflect the company's General Tariff rates under General Tariff item 960 for the applicable contract duration. For arrangements in excess of five years, consistent with Decision 97-7, the company is invited to file proposed General Tariff rates for intra-exchange optical fibre. Where a particular private optical fibre network includes an inter-exchange component, that component should reflect the company's proposed General Tariff rates for inter-exchange optical fibre to be filed pursuant to Decision 2003-59.

Yours sincerely,

Original signed by

Shirley Soehn
Executive Director
Telecommunications

c.c.: Suzanne Bédard, CRTC (819) 994-6134
 

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