ARCHIVED - Telecom Order CRTC 2003-49

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Telecom Order CRTC 2003-49

Ottawa, 24 January 2003

Société en commandite Télébec

Reference: Tariff Notices 285 and 285A

Interconnecting circuits with trunk-side and wireless access


The Commission received an application by Société en commandite Télébec (Télébec), dated 17 June 2002 and modified on 7 August 2002, to revise General Tariff item 7.2.2, Interconnecting circuits with trunk-side access, and General Tariff item 10.1, Wireless access, in order to:

· add rates for services associated with common channel signalling 7 (CCS7) port connections, line-side access, trunk-side access, 100/1000 block routing, geographic central office codes and wireless CCS7 signalling interconnection; and
· increase rates for service charges associated with both the provisioning of interconnecting circuits with trunk-side access and the activation of additional line-side access channels.


On 17 July 2002, Rogers Wireless Inc. (RWI) and Microcell Telecommunications Inc. (Microcell) separately filed comments with respect to this application. On 26 July 2002, Télébec filed reply comments. On 7 August 2002, Télébec filed Tariff Notice 285A.

Parties' comments


RWI noted that Télébec had proposed access, trunk and link charges associated with trunk-side interconnection. RWI requested that Télébec modify the application to apply the link charge only in the case of line-side interconnection.


RWI also requested that the signal transfer point (STP) link charge not apply in the case where the interconnecting carrier elects to exchange CCS7 messages with Télébec via transiting arrangements with Bell Canada. RWI argued that the STP link charge was intended to recover Télébec's cost to provision a discrete STP link and that Télébec was not required to establish discrete STP link where the wireless service provider elects to exchange CCS7 messages with Télébec via CCS7 transiting arrangements with Bell Canada.


RWI also requested that Télébec provide cost justification for both trunk-side trunk charges and CCS7 port connections.


Finally, RWI requested immediate access to the services proposed by Télébec and argued that the rates previously approved for Bell Canada should be used during the interim until cost justification is provided by Télébec.


Microcell submitted modifications to the tariff relating to:

· the definition of trunk-side access;
· the general conditions of wireless access;
· the conditions associated with geographic central office codes for trunk-side interconnection by wireless service providers;
· wording to limit charges associated with seven-digit telephone numbers to line-side access;
· certain descriptions associated with the terms of service such that specific charges are associated with trunk-side access only; and
· the removal of the monthly interconnection charge for the digital trunk controller (DTC).


Microcell also requested that Télébec provide cost justification for both trunk-side trunk charges and CCS7 port connections.

Télébec's reply


In reply, Télébec agreed to both the proposed modifications made by Microcell as well as the line-side interconnection link charge modification requested by RWI. Tariff Notice 285A amended Télébec's application to incorporate the requested modifications.


Télébec indicated that it would file cost studies in support of its proposed rates as requested by both RWI and Microcell. Télébec further stated that it did not object to the Commission issuing an interim order in the absence of Télébec filing cost studies. Télébec requested however that, in the event the Commission issues an interim order, the Commission adopt Télébec's proposed rates.

Commission determination


In Implementation of price regulation for Télébec and TELUS Québec, Telecom Decision CRTC 2002-43, 31 July 2002 (Decision 2002-43), the Commission directed Télébec to file, by 1 October 2002, a complete list of all tariffed services with a proposed classification of each service. Further, the Commission made the tariffed rates for Télébec's competitor services interim, effective 1 August 2002.


In Commission approves terms and conditions for local exchange and local payphone competition in the territories of TELUS Communications (Québec) Inc. and Télébec ltée, Order CRTC 2001-761, 3 October 2001, the Commission found it appropriate to subject Télébec to the same local competition rules as were in place for the large incumbent local exchange carriers. The Commission notes that the rates for local interconnection services were to be based on Phase II costs plus a 25% mark-up. The Commission, in Price cap regulation and related issues, Telecom Decision CRTC 97-9, 1 May 1997, considered that the primary rationale for a change in the rates for competitor services would be a change in Phase II costs.


Accordingly, the Commission considers that revisions to Télébec's competitor services rates are to be supported by evidence of a change in the underlying costs. The Commission considers that without costing support, there is no basis for consideration of the proposed service charge increases.


The Commission notes that the wording modifications proposed by RWI and Microcell were accepted by Télébec. Télébec's Tariff Notice 285A modified the application to reflect the changes with the following exceptions. Télébec failed to remove the monthly interconnection charge for DTC, General Tariff item 10.1.3 c) (iii). Also, Télébec qualified General Tariff item 10.1.3 e) (i) to state that the service was optional for trunk-side interconnections by wireless service providers but omitted to include the same qualification to General Tariff items 10.1.3 e) (ii) and 10.1.3 e) (iii) as proposed by Microcell. The Commission considers that these modifications clarify the terms and conditions associated with the service offerings and finds that the modifications, including the exclusions noted above, are appropriate.


The Commission notes that, with respect to the new services being proposed, RWI requested immediate access to these services at interim rates previously approved by the Commission for Bell Canada. The Commission considers that, while Télébec's associated costs of providing these services have yet to be examined by the Commission, it is unlikely that the associated costs for such services would be equal to or less than those of Bell Canada. Accordingly, the Commission considers that it would not be appropriate to set Télébec's rates equal to those previously approved for Bell Canada in the absence of costing support.


In light of the above, the Commission approves on an interim basis the application as proposed by Télébec with the following amendments:

· Télébec is directed to remove from its proposed tariffs the monthly interconnection charge for DTC, General Tariff item 10.1.3 c) (iii);
· Télébec is directed to add the last sentence from General Tariff item 10.1.3 e) (i), proposed in Tariff Notice 285A, to General Tariff items 10.1.3 e) (ii) and 10.1.3 e) (iii); and
· the proposed increases to the following service charges are denied: the rate associated with both the inward order and change order for each DS-0, General Tariff item 7.2.2 d), and the line-side rate to activate additional access channels, General Tariff item 10.1.3 c) (ii).


The Commission directs Télébec to file costing support for the rates approved on an interim basis in this application within 60 days of this order.


The revisions take effect as of the date of this order. Télébec is to issue revised tariff pages forthwith to reflect all the above noted changes.

Secretary General

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Date Modified: 2003-01-24

Date modified: