ARCHIVED - Telecom - Commission Letter - 8646-C12-01/00 - Public Notice 2000-57

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Letter

Ottawa, 5 April 2005

File No. 8646-C12-01/00

To: Interested parties to PN 2000-57

Re: Public Notice 2000-57

In Application concerning access by Internet service providers to incumbent cable carriers' telecommunications facilities, Telecom Decision CRTC 99-11, 14 September 1999 (Decision 99-11), the Commission directed each incumbent cable carrier providing higher speed retail Internet services to make these services available for resale at a discount of 25% from the lowest retail Internet service rate charged by the cable carrier to a cable customer in its service area during any one month period. The Commission stated that the cable carriers could propose an alternative discount rate supported by appropriate costing information. The Commission stated that these terms must be maintained until the cable carrier provides competing Internet service providers with access through interconnection according to a tariff approved by the Commission.

In Definitions of larger cable carriers and the creation of confidentiality agreements , Order CRTC 2000-317, 18 April 2000 , the Commission determined that cable carriers other than the larger carriers would not be required to cost justify proposed rates for their higher speed access service.

In Seeking input on higher speed access services offered by smaller cable carriers , Public Notice CRTC 2000-57, 28 April 2000 (Public Notice 2000-57), the Commission invited parties to comment on possible regulatory approaches to the rates and terms for higher speed access services offered by smaller incumbent cable carriers (the smaller carriers) Higher speed access services enable competitive providers of retail Internet services to offer higher speed Internet services using cable infrastructure. The smaller carriers operate systems under distribution undertaking licences that are not held, either directly or indirectly, by Cogeco Cable Canada Inc., Rogers Communications Inc., Shaw Communications Inc. or Vidéotron ltée (the larger carriers).

In Public Notice 2000-57, the Commission noted that regulatory approaches that do not require cost justification would include allowing a smaller carrier to use the rates of one of the larger carriers without supporting cost information (proxy rates). Under this approach, if a carrier chooses to charge a rate that is higher than the rate charged by one of the larger carriers, the carrier would be required to cost justify its proposed higher rate. The Commission indicated that another approach would be to forbear with respect to rates and terms of higher speed access service, with access issues being addressed on a complaint basis.

Commission staff notes that there has been little demand by competitive providers of retail Internet services for higher speed access services from the smaller carriers. In the Commission staff's view, this is due to the smaller revenue opportunities in these territories that are typically more geographically disperse and less densely populated. In addition, as there are numerous smaller cable carriers operating under diverse circumstances, with different retail rates and interconnection costs, one regulatory approach may not be appropriate for all such carriers. Accordingly, Commission staff considers that it would be appropriate to deal with proposed rates and terms for the smaller carriers' higher speed access services and the resale of their higher speed retail Internet services on a case-by-case basis, where demand exists for these services.

In light of the above, the above-noted file is closed.

Sincerely,

'Original signed by S. Hutton'

Scott Hutton
Director General
Competition, Costing and Tariffs

cc: Nora Froese, CRTC (819) 953-5254

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