ARCHIVED - Telecom - Commission Letter - 8638-S1-01/98 - Forbearance from interexchange private line routes

Letter

Ottawa, 29 November 2004

Our file: 8638-S1-01/98

BY E-MAIL / FACSIMILE

To: Distribution List

Re: Forbearance from interexchange private line routes

In a letter dated 15 September 2004, Commission staff provided direction to providers of interexchange private line (IXPL) services related to the filing of the semi-annual report due 1 October 2004 pursuant to Follow-up proceeding to Telecom Decision 97-20: Establishment of criterion and process for considering further forbearance for High Capacity/DDS interexchange private line services, Telecom Order CRTC 99-434, 12 May 1999 (Order 99-434).

Commission staff requested that in their filings of 1 October 2004, all competitors, including out-of-territory affiliates of the incumbent local exchange carriers (ILECs), broadcast distribution undertakings (BDUs), BDU affiliates and other competitors in the IXPL market, file all their IXPL routes that comply with the forbearance criterion established in Order 99-434, including all routes that a competitor may have previously reported as part of the semi-annual filings pursuant to Order 99-434.

Commission staff notes that recent developments imply that, on some IXPL routes where the Commission has forborne from the regulation of the provision of IXPL services, there may be routes where offers or the provision of IXPL services can only use capacity obtained from the ILEC or an in-territory affiliate of the ILEC.

For example, Québécor Média Inc., on behalf of its subsidiary, Vidéotron Télécom Ltée (VTL), informed the Commission, in the course of its 2004 semi-annual filings, that it had ceased to provide, or offer to provide, IXPL services on many of the IXPL routes in respect to which forbearance had been granted in the past, namely in The Commission forbears from regulating interexchange private line services on additional routes of Bell Canada , Telecom Order CRTC 2001-2, 10 January 2001 and Forbearance from regulating additional interexchange private line services , Telecom Decision CRTC 2004-2, 16 January 2004.

Further, recently MTS Communications Inc. acquired Allstream Inc., and Bell Canada acquired 360 Networks, after 360 Networks had acquired GT Group Telecom.

Therefore, in addition to dealing with matters normally arising out of the October 2004 IXPL filings pursuant to Order 99-434, the Commission will address the issue of re-regulation of IXPL routes no longer meeting the forbearance criteria.

In Order 99-434, the Commission stated:

"1. The Commission will apply the following criterion when considering whether to grant further forbearance for High Capacity and Digital Data Services (DDS) interexchange private line (IXPL) services offered.:

The Companies' domestic High Capacity/DDS services on a particular route will be granted forbearance upon the Commission being satisfied that one or more competitors of a Company are offering or providing, on that route, the equivalent of DS-3 bandwidth (or greater) on a private line basis to at least one customer, using terrestrial facilities from other than the Company in question or an affiliate of that Company." [1]

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  "44. The Commission directs all competitors of a Company, including BDUs and BDU affiliates, that provide telecommunications services, to file with the Commission, within 90 days of this Order, serving copies on the relevant Companies, a report identifying all IXPL routes for which they provide or offer IXPL service that meet the criterion established in this Order."

"46. The first semi-annual report is to be submitted on 1 October 1999. In subsequent years, this information is to be submitted semi-annually, on 1 April and 1 October."

In order to assist the Commission in addressing appropriately the situation where a forborne IXPL route no longer meets the criteria set out in Order 99-434, for any reason, and to provide guidance to the parties for future instances, parties are requested to provide comments regarding the following:

Parties may file comments by 13 December 2004, copying all parties on the distribution list.   Parties may file reply comments by 22 December 2004, serving a copy on all those who filed comments.   All submissions must be received, not merely mailed, by the dates specified.

Sincerely

Paul M. Godin
Director,
Competition Implementation & Technology
Telecommunications

Attached:   Distribution List