ARCHIVED - Telecom Order CRTC 2004-256

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Telecom Order CRTC 2004-256

  Ottawa, 30 July 2004

Bell Canada

  Reference: Tariff Notice 6813

Managed Internet Protocol Telephony service


The Commission received an application by Bell Canada, dated 10 May 2004, to introduce General Tariff item 7010, Managed Internet Protocol Telephony (MIPT) service. Bell Canada proposed a rate structure with volume discount bands and options of subscribing by the month or minimum service periods ranging from one to five years. The company also proposed to waive the installation charge of $75.00 per MIPT port until the end of 2004.


Bell Canada stated that MIPT service was an alternative to the company's Centrex service. The company proposed to determine the applicable volume discount band for Centrex and MIPT customers using the total number of their Centrex lines and MIPT ports. Bell Canada submitted that it would facilitate the gradual conversion of its customers from Centrex service to MIPT service.


Bell Canada filed an imputation test in support of the proposed rates.


The Commission received comments from Allstream Corp., Cogeco Cable Inc., Microcell Solutions Inc., OneConnect and Primus Telecommunications Canada Inc., all dated 9 June 2004, from Xit telecom inc., dated 9 June 2004, 5 July 2004 and 23 July 2004, and from MTS Communications Inc. dated 10 June 2004 (hereinafter, the interveners).


The Commission received reply comments from Bell Canada dated 21 June 2004 and 19 July 2004.


In Regulatory framework for voice communication services using Internet Protocol, Telecom Public Notice CRTC 2004-2, 7 April 2004 and amended in Regulatory framework for voice communication services using Internet Protocol - Amendment to dates for public consultation, Telecom Public Notice CRTC 2004-2-1, 22 July 2004 (Public Notice 2004-2-1), the Commission was of the preliminary view that the existing regulatory framework should apply to voice communication services using Internet Protocol (IP) that made use of telephone numbers based on the North American Numbering Plan and provided universal access to and/or from the public switched telephone network. In the Appendix, the Commission set out its views as to the specific regulatory requirements that would apply to incumbent local exchange carriers (ILECs), competitive local exchange carriers and resellers.


In Regulatory framework for second price cap period, Telecom Decision CRTC 2002-34, 30 May 2002 (Decision 2002-34), the Commission classified Centrex service as an uncapped service. The Commission determined that uncapped services would not be subject to any upper pricing constraints.


In Review of promotions, Telecom Public Notice CRTC 2003-1-1, 13 March 2003, the Commission suspended its consideration of applications for promotions in the local wireline market until a decision is issued on the matters raised in Review of winback promotions, Telecom Public Notice CRTC 2003-1, 15 January 2003 (Public Notice 2003-1-1).


The Commission notes that the proposed terms and conditions of service for MIPT service are similar to those that have been approved for Centrex service. The Commission is satisfied that the proposed rates for MIPT service pass the imputation test.


The Commission notes that customers to MIPT service will have access to 9-1-1 service, message relay service and privacy features. The Commission therefore considers that Bell Canada's application is consistent with the Commission's preliminary view set out in Public Notice 2004-2-1 with respect to the regulatory framework applicable to an ILEC providing voice communication services using IP.


The Commission considers that since MIPT service is intended as a replacement for Centrex service, it should be classified, like Centrex service, as an uncapped service pursuant to Decision 2002-34.


The Commission notes that, among other things, interveners argued that Bell Canada's proposal to waive installation charges for a limited period of time was a promotion that should be addressed in the proceeding initiated by Public Notice 2003-1-1. The Commission also notes that Bell Canada argued that its proposal was not a promotion, but a time-limited incentive to encourage its customers to migrate legacy Centrex service to MIPT service. The Commission considers that Bell Canada's proposal is in the nature of a promotion and that its disposition should be deferred pending the outcome of Public Notice 2003-1-1.


The Commission will address other issues raised by interveners when it disposes of Bell Canada's application on a final basis.


In light of the above, the Commission approves on an interim basis, Bell Canada's application with the exception of the temporary waiver of the installation charges. The revisions take effect as of the date of this order.
  Secretary General
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Date Modified: 2004-07-30

Date modified: