ARCHIVED - Telecom Commission Letter - 8623-C12-05/05

Letter

Our file: 8623-C12-05/05

Ottawa, 23 August 2005

To: Companies on the attached distribution list

Re: Show cause - Publishing of certain information filed in confidence

In a letter dated 5 August 2005, the companies that provided certain data in confidence as part of the Commission's 2005 data collection process, were requested to show cause why the Commission should not publish certain information relating to the year 2004 and previous years in the same format as it did in its fourth annual Monitoring Report to the Governor in Council dated November 2004 (fourth annual report).

The companies were requested to address the publication of the following information:

1.  Percentages of the local market held by incumbents, out-of-territory incumbents and competitors in the major centres for residential, business and total (including wholesale) local markets (based on local access lines);

2.  Percentages of the local market held by large incumbents by province (based on access lines).   The incumbents' out-of-territory lines within a province would be included with the competitors' lines;

3.  Percentages of the long distance market held by large incumbents in the incumbents' operating territories (based on revenues);

4.  Percentages of the wireless market held by each major wireless provider by province (based on number of subscribers);

5.  Percentages of households having access to broadband services by province and for rural and urban areas by province; and

6.  Percentages of households with subscriptions to broadband services by province.

Responses were received from Bell Canada on behalf of itself, NorthernTel, Limited Partnership, and Télébec, société en commandite (collectively Bell et al); Bell Mobility on behalf of itself, NorthernTel, Limited Partnership, and Télébec, société en commandite (collectively Bell Mobility et al); MTS Allstream Inc.; Primus Telecommunications Canada; Quebecor Media Inc. on behalf of Videotron Telecom Ltd., Videotron Ltd., Videotron (1998) Ltd., CF Cable TV Inc. and Videotron (Regional) Ltd.; Saskatchewan Telecommunications on behalf of itself and Navigata Communications Inc.; Aliant Telecom Inc. ; and TELUS Corporation Inc.

Position of the parties

Companies that responded, other than Bell et al and Bell Mobility et al, indicated that they had no objections in releasing the confidential data to the extent that the information will be presented on an aggregated basis in a similar format as in the fourth annual report.

Bell et al objected to the Commission publishing market share information as it did in its fourth annual report. Bell et al noted that the Commission releases specific market share data for incumbents and not for other suppliers.   In Bell et al's view, given the current intense competitive environment, this policy puts incumbents at a competitive disadvantage.   As such, Bell et al proposed that the Commission consider releasing this market share data for all suppliers or not releasing it at all.

Bell et al further noted that the Commission has published aggregated information on the local services market on a national basis by class of service provider. Bell et al submitted that releasing such information on a national basis could lead to the erroneous conclusion that there is only one homogeneous local market with one incumbent throughout the entire country, which does not accurately depict the current status of competition in the telecommunications industry. As such, Bell et al proposed that the Commission discontinue the practice of releasing such aggregated data.

Finally, Bell et al stated that, in some cases, the incumbent local line market shares published in the fourth annual report were overstated.   Bell et al specifically submitted that the "Total Lines" column in Table 4.3.5 of the fourth annual report was overstated and that this overstatement stems from the fact that wholesale lines provided to competitors were recognized as both incumbents' and competitors' lines.   This effectively increases both the numerator and denominator used in the incumbents' market share calculation.

Bell Mobility et al objected to the Commission publishing wireless market share data aggregated under the Bell Wireless Alliance (BWA) heading as it did in the fourth annual monitoring report dated November 2004.    Bell Mobility et al noted that MTS Mobility is no longer a member of the BWA.   As such, Bell Mobility et al proposed that the Commission report wireless market data for all major wireless carriers individually.   However, it also proposed that the majority-owned BCE companies should continue to be aggregated.

Analysis  

Disclosure of information for which confidentiality has been claimed is assessed in light of sections 38 and 39 of the Telecommunications Ac t (the Act) and section 19 of the CRTC Telecommunications Rules of Procedure (the Rules). In the case of each request, the public interest in disclosure is weighed against the specific direct harm, if any, likely to result from disclosure. In doing so, a number of factors are taken into account, when assessing each of the items.  

The expectation that specific direct harm might result from disclosure is not, by itself, sufficient to justify maintaining a claim of confidentiality. In certain circumstances, substantial harm from disclosure may still be outweighed by the public interest in disclosure.  

There is a significant public interest in the disclosure of information, including market share data, with respect to the status of competition in Canadian telecommunications markets and data related to the deployment of advanced telecommunication infrastructure and services. The objectives of the Act as set out in section 7 include: "to foster increased reliance on market forces for the provision of telecommunications services and to ensure that regulation, where required, is efficient and effective; to render reliable and affordable telecommunications services of high quality accessible to Canadians in both urban and rural in all regions of Canada"; and "to respond to the economic and social requirements of users of telecommunications services".

The Governor in Council's June 2000 Direction requires the Commission to report, annually for five years, on the status of competition in Canadian telecommunications markets and on the deployment/accessibility of advanced telecommunications infrastructure and services. The Direction also requires that the reports include, among other things, relevant data and analyses. The annual monitoring reports with their underlying data represent a key component of the Commission's ongoing monitoring plan and become an authoritative source of information on the Canadian telecommunications industry for use by various stakeholders. Open and transparent regulatory processes best serve the public interest, and the information published in the reports assists interested parties in participating in regulatory proceedings.

The information gathered as part of its monitoring activities enables the Commission to determine more effectively (a) the state of competition and (b) the effect of competition on services to consumers and business customers. Such information is also useful in assessing the effectiveness of the Commission's policies, decisions and orders.

We have carefully considered the comments filed in response to our letter and note that the companies generally indicated that they had no objections in releasing the confidential data to the extent that the information will be presented on an aggregated basis in a similar format to the fourth annual report.

With respect to Bell et al's concerns relating to the release of specific market share data for incumbents and aggregate data for other suppliers, we consider that presenting the information in question separately for incumbents and competitors continues at this time to represent the most appropriate way of reporting on the status of competition.

Conclusion  

Having carefully considered the parties' submissions, we consider that the public interest in disclosing the proposed information outweighs any specific direct harm that may result from such disclosure. Accordingly, subject to what follows, the information will be published in the manner proposed in our letter dated 5 August 2005 .

Other matters

With respect to Bell et al's submission that providing information on local service markets on a national basis could lead to a false perception of a single homogeneous local and access market with one national supplier, we note that the monitoring report provides a comprehensive overview of the industry, including the incumbents.  

We note Bell et al's submission concerning the treatment of wholesale lines in the fourth annual report and intend to modify the presentation of local line information, to the extent appropriate, in any future publication.

We also note Bell Mobility et al's concern relating to the wireless market share percentages aggregated under the Bell Wireless Alliance (BWA) heading and the changes that have occurred in the industry.   As per our normal practice, changes in the structure of the industry will be appropriately reflected in any future publication.

Yours sincerely,

Len Katz
Executive Director, Telecommunications

c.c.: Steve Malowany, CRTC, (819) 953-2167

Distribution List:

Aliant Telecom Inc.
MTS Allstream Inc.
Bell Canada
Bell Mobility
Bragg Communications Incorporated
Cogeco Cable Inc.
Futureway Communications Inc.
Navigata Communications Inc.
Northern Telephone Limited
Primus Telecommunications Canada
Rogers Cable Inc.
Rogers Wireless
Saskatchewan Telecommunications
Shaw Telecom Inc.
Télébec, société en commandite
Teleglobe inc
TELUS Corporation Inc.
Vidéotron Télécom Ltée

Date Modified: 2005-08-23