ARCHIVED - lo

This page has been archived on the Web

Information identified as archived on the Web is for reference, research or recordkeeping purposes. Archived Decisions, Notices and Orders (DNOs) remain in effect except to the extent they are amended or reversed by the Commission, a court, or the government. The text of archived information has not been altered or updated after the date of archiving. Changes to DNOs are published as “dashes” to the original DNO number. Web pages that are archived on the Web are not subject to the Government of Canada Web Standards. As per the Communications Policy of the Government of Canada, you can request alternate formats by contacting us.

Letter

Ottawa, 18 August 2006

File No.: 8640-C12-200607210

By E-Mail

To: Distribution List

File #: 8640-C12-200607210 - Public Notice 2006-9 - Proceeding to examine whether mobile wireless services should be considered to be in the same relevant market as wireline local exchange services with respect to forbearance, and related issues

 

With respect to Proceeding to examine whether mobile wireless services should be considered to be in the same relevant market as wireline local exchange services with respect to forbearance, and related issues , Telecom Public Notice CRTC 2006-9, 16 June 2006 (Public Notice 2006-9), Commission staff requests responses to the attached interrogatories.

Pursuant to the procedure set out in Public Notice 2006-9, responses are to be filed with the Commission and served on all parties to that proceeding by 8 September 2006 .   Where a document is to be filed or served by a specific date, the document must actually be received, not merely sent, by that date.

Yours sincerely,

 

Original signed by Scott Hutton

 

Scott Hutton

A/Director General, Policy & Consumer Affairs

Telecommunications

Distribution List:

regulatory.matters@aliant.ca ;   bell.regulatory@bell.ca ;   iworkstation@allstream.com ;   document.control@sasktel.sk.ca ;   reglementa@telebec.com ;   regulatory.affairs@telus.com ;   telecom.regulatory@cogeco.com ;   regaffairs@quebecor.com ;   david.watt@rci.rogers.com ;   jean.brazeau@sjrb.ca ;   cedwards@ccsa.cable.ca ;   piac@piac.ca

 

cc:Parties to Telecom Public Notice CRTC 2006-9

Ian M ac Millan, CRTC (819) 934-6350 ian.macmillan@crtc.gc.ca

Bob Martin, CRTC (819) 953-3361 robert.martin@crtc.gc.ca

William Lloyd, CRTC (819) 997-4654 william.lloyd@crtc.gc.ca

 

Attachments

Interrogatories for:

Bell Aliant Regional Communications, Limited Partnership
Bell Canada
MTS Allstream Inc.
Rogers Communications Inc.
Saskatchewan Telecommunications
Société en commandite Télébec
TELUS Communications Company

(CRTC)18Aug06-1

For each province:

With regard to mobile wireless services provided by the company, or an affiliate of the company, provide the number of subscribers and associated minutes and revenues, including revenues associated with optional services, excluding long distance minutes and revenues, identifying the split between business and residential, as of 31 December 2004, 31 December 2005 and 31 July 2006.   The response should include a detailed description of how the split was determined.

(CRTC)18Aug06-2

For each province:

With regard to mobile wireless services provided by the company, or an affiliate of the company, provide the company's latest forecast for the number of subscribers and associated minutes and revenues, including revenues associated with optional services, excluding long distance minutes and revenues, identifying the split between business and residential, as of 31 December (or the company's year-end) for the years 2006, 2007 and 2008, which its Board of Directors has approved as part of the overall Board-approved financials.   The response should include a detailed description of how the split was determined.

(CRTC)18Aug06-3

Provide all market surveys, projections, studies, and other research reports that the company, or an affiliate of the company, has undertaken or commissioned that indicate the extent to which mobile wireless services have been, or may in the future be, used as substitutes, whether in whole or in part, for fixed wireline services.   The information may include, but would not necessarily be limited to, matters such as:

 

·the analyses of cross-price elasticities between mobile wireless services and fixed

wireline services;

·the percentage of business and residential subscribers that forgo fixed wireline services in favour of mobile wireless services;

·the percentage of business and residential subscribers that subscribe to mobile wireless services as a complement to fixed wireline services (e.g. as an   alternative to a second line);

·the extent that non-price factors (e.g. mobility, coverage area, features,   consumer demographic characteristics, etc.) impact a subscriber's decision to forgo fixed wireline services in favour of mobile wireless services; and

·the percentage of households with mobile wireless services.(CRTC)18Aug06-4

With respect to business and residential subscribers, compare the company's mobile wireless services, or those of an affiliate of the company, with fixed wireline services offered by the company, or an affiliate, from the standpoint of pricing and feature functionality.

Interrogatories for Bell Aliant Regional Communications, Limited Partnership, Bell   Canada , Saskatchewan Telecommunications, and Société en commandite Télébec (collectively, the Companies)

Companies(CRTC)18Aug06-101

In paragraphs 49 to 51 of their 28 July 2006 comments, the Consumers' Association of Canada and the National Anti-Poverty Organization (collectively, the Consumer Groups) addressed the international regulatory treatment of wireline and wireless markets .   Comment on the Consumer Groups' statements that:

•  "Ofcom, the national regulatory body, has consistently deemed that the level of substitution between wireless and fixed telephones does not warrant their inclusion within the same relevant market," and

•  "In the European Union, the most recent draft of a working paper with recommendations for the regulatory reform process under way, does not find significant mobile/fixed substitution as to suggest redefinition of markets. 

Companies(CRTC)18Aug06-102

Provide copies of reports or any other written material in the Companies' possession or control addressing the relationship between wireline and wireless services in countries other than Canada with respect to the definition of the relevant market for local wireline services in connection with forbearance, or similar, determinations.

Companies(CRTC)18Aug06-103

In paragraph 6 of their 28 July 2006 comments, the Companies cited Ofcom's 19 July 2006 decision to remove retail price controls on British Telecom's line rental and calls.   Provide specific statements from Ofcom's statement referred to in footnote 3 on page 2 of the Companies' comments that address the proposition that mobile phone usage is growing as consumers increasingly turn to mobiles rather than landline phones for many of their daily calls.

Companies(CRTC)18Aug06-104

In paragraph 66 of their 28 July 2006 comments, the Companies recommended adjusting the incumbent local exchange carrier's (ILEC) wireline market share loss formula by incorporating "wireless subscriptions."

 

•  Define "wireless subscription."

•  Comment on the difference, if any, between a "wireless subscription" and the Companies' understanding of a "wireless NAL [network access line]", which is the term used by TELUS Communications Company in its comments of 28 July 2006 .

 

Companies(CRTC)18Aug06-105

The Companies' 28 July 2006 comments referred to several consultants' reports and studies.   Provide copies of the following:

•  the report cited in footnotes 9, 14, 15, and 17 " IDC, Wireless Wars 2:   Canadian Wireless Forecast and Analysis, 2005-2009 , November 2005.   IDC# CA1712TMS";

•  the document from IDC cited as the source of the information in Figures 2 and 3 as well as a detailed description of the derivation of the information presented in Figures 2 and 3;

•  the report cited in footnote 11, " IDC, Canadian Telecom Services Market Preliminary Forecast and Analysis:   2005-2010 , May 2006.   IDC# CA1705TMS, Volume: 1";

•  the report of the April 2006 survey, conducted by Decima Research Inc, referenced in paragraph 12;

•  the report cited in footnote 16, Citigroup, Pricing Survey: Canada , 26 April 2006";

•  the " Bell Canada analysis" cited in footnotes 18 and 19, which pertain to local outbound network usage.   If this analysis is not in the form of a stand-alone report, provide a complete detailed description of the methodology used in the analysis as well as a complete presentation of the results.   Provide copies of all presentations to senior executives (i.e. vice-president or above) in which the results of this analysis are included;

•  the report cited in footnote 22, "Decima Research, Usage of Wireless Communications in Canada , April 2006";

•  the report cited in footnotes 23 and 31, " Yankee Group, 2006 Canadian Mobile User Survey , May 2006";

•  the report cited in footnote 40, " Sung, Nakil, and Yong-Hun Lee (2002), "Substitution between Mobile and Fixed Telephones in Korea", Review of Industrial Organization , 20: 367-374; and Barros, Pedro Pita, and Nuno Cadima (2000), "The Impact of Mobile Phone Diffusion on the Fixed-Link Network", Centre for Economic Policy Research Discussion Paper No. 2598 , London : Centre for Economic Policy Research";

•  the report cited in footnote 41, " DotEcon (2001), Fixed-Mobile Substitution: A Report Prepared for BT , London : DotEcon.";

•  the report cited in footnote 42, " Rodini, Mark, Michael R. Ward and Glenn A. Woroch (2003), Going Mobile: Substitutability between Fixed and Mobile Access", Telecommunications Policy , 27"; and

•  the report cited in footnote 43, " Yankee Group, Regional Considerations for Canadian Cord-Cutting , 9 May 2006 ."

Companies(CRTC)18Aug06-106

In paragraph 66 of their 28 July 2006 comments, the Companies provided a proposed formula for the calculation of ILEC wireline market share loss.

 

•  For each of business and residential, separately for each local forbearance region (LFR) in the Companies' operating territories, provide an estimate of the ILEC market share loss as of 31 July 2006 under the Companies' proposal.   Provide details of all assumptions, data, and underlying calculations used in determining these estimates.

•  For each of business and residential, separately for each LFR in the Companies' operating territories, provide an estimate of the ILEC market share loss as of 31 July 2006 assuming no wireless substitution.   Provide details of all assumptions, data, and underlying calculations used in determining these estimates.

Companies(CRTC)18Aug06-107

In paragraph 38 of TCC's 28 July 2006 comments, it stated "[t]he number of wireless only households can be easily derived from the Statistics Canada annual surveys."

Comment on the accuracy of estimates of wireless households at the LFR level based on the Statistics Canada annual surveys.   Provide relevant details such as sample size by LFR, confidence intervals, coefficients of variation, possible sources of bias in the estimates such as bias due to non-response, and any other technical details deemed relevant.   If Statistics Canada sources of information are used in developing these details, provide complete references for these sources.

Interrogatories for TELUS Communications Company (TCC)

 

TCC(CRTC)18Aug06-101

At paragraph 29 of its 28 July 2006 comments TCC recommends adjusting the incumbent local exchange carrier's (ILEC) wireline market share loss formula by incorporating "wireless NALs [network access lines]."

 

•  Define "wireless NAL."

•  Comment on the difference, if any, between a "wireless NAL" and the company's understanding of a "wireless subscription", which is the term used by the Companies in their comments of 28 July 2006 .

 

TCC(CRTC)18Aug06-102

In footnote 11 of its 28 July 2006 comments, TCC stated that "TELUS notes that Rogers continues to market certain of its wireless brands as wireline replacement services and has increased the geographic availability of these wireless replacement services as recently as 30 June 2006 ."

Specify, with supporting references, which wireless brands TCC understands Rogers markets as a replacement for wireline.   The response should provide, with supporting references, details of such service offerings, such as prices, geographic availability, call minutes per month, and wireline service features not normally available with wireless services (e.g. local number portability, equal access, etc.).

TCC(CRTC)18Aug06-103

In paragraph 29 of its 28 July 2006 comments, TCC provided a proposed formula for the calculation of ILEC wireline market share.   In paragraphs 242 and 515 of Forbearance from the regulation of retail local exchange services , Telecom Decision CRTC 2006-15, 6 April 2006, the Commission's market share criterion for forbearance of local exchange services from regulation is expressed in terms of an ILEC's market share loss, not in terms of an ILEC's market share.

•  Comment on the appropriateness of using a formula expressed in terms of market share, as distinct from market share loss.

•  Provide a formula that expresses the company's proposal in terms of ILEC wireline market share loss instead of ILEC wireline market share.

TCC(CRTC)18Aug06-104

Refer to the response to interrogatory TCC(CRTC)18Aug06-103, and TCC's proposed formula for the calculation of ILEC wireline market share loss.

 

•  For each of business and residential, separately for each local forbearance region (LFR) in TCC's operating territories, provide an estimate of the ILEC market share loss as of 31 July 2006 under TCC's proposal.   Provide details of all assumptions, data, and underlying calculations used in determining these estimates.

•  For each of business and residential, separately for each LFR in TCC's operating territories, provide an estimate of the ILEC market share loss as of 31 July 2006 assuming no wireless substitution.   Provide details of all assumptions, data, and underlying calculations used in determining these estimates.

TCC(CRTC)18Aug06-105

In paragraph 38 of its 28 July 2006 comments, TCC stated "[t]he number of wireless only households can be easily derived from the Statistics Canada annual surveys."

Comment on the accuracy of estimates of wireless households at the LFR level based on the Statistics Canada annual surveys.   Provide relevant details such as sample size by LFR, confidence intervals, coefficients of variation, possible sources of bias in the estimates such as bias due to non-response, and any other technical details deemed relevant.   If Statistics Canada sources of information are used in developing these details, provide complete references for these sources.

TCC(CRTC)18Aug06-106

Provide copies of reports or any other written material in TCC's possession or control addressing the relationship between wireline and wireless services in countries other than Canada with respect to   the definition of the relevant market for local wireline services in connection with forbearance, or similar, determinations.

Interrogatories for the Consumers' Association of Canada and the National Anti-Poverty Organization (collectively, the Consumer Groups)

Consumer Groups(CRTC)18Aug06-101

In paragraph 49 of their 28 July 2006 comments, the Consumer Groups stated that "Ofcom, the national regulatory body, has consistently deemed that the level of substitution between wireless and fixed telephones does not warrant their inclusion within the same relevant market."   In paragraph 6 of their 28 July 2006 comments, Bell Aliant Regional Communications, Limited Partnership, Bell Canada, Saskatchewan Telecommunications, and Société en commandite Télébec (collectively, the Companies) stated "Ofcom's 19 July 2006 decision to remove retail price controls on British Telecom's line rental and calls cited the growing competition from the use of wireless services in place of wireline service."

Comment on whether Ofcom's citation of ". the growing competition from the use of wireless services in place of wireline service" is evidence that Ofcom has changed its position in regards to the inclusion of wireless and fixed wireline services in the same relevant market, and, if so, the weight to be attached to such evidence. If the Consumer Groups consider that Ofcom's statement does not constitute evidence that Ofcom has changed its position, explain why not.    Provide statements from Ofcom that support the Consumer Groups' assessment of Ofcom's statement.

Consumer Groups(CRTC)18Aug06-102

Provide copies of reports or any other written material in the Consumer Groups' possession or control addressing the relationship between wireline and wireless services in countries other than Canada with respect to the definition of the relevant market for local wireline services in connection with forbearance, or similar, determinations.

Consumer Groups(CRTC)18Aug06-103

 

In paragraph 38 of its 28 July 2006 comments, TELUS Communications Company stated that "[t]he number of wireless only households can be easily derived from the Statistics Canada annual surveys."

Comment on the accuracy of estimates of wireless households at the local forbearance region (LFR) level based on the Statistics Canada annual surveys.   Provide relevant details such as sample size by LFR, confidence intervals, coefficients of variation, possible sources of bias in the estimates such as bias due to non-response, and any other technical details deemed relevant.   If Statistics Canada sources of information are used in developing these details, provide complete references for these sources.

Interrogatories for MTS Allstream Inc. (MTS Allstream)

 

MTS Allstream(CRTC)18Aug06-101

In paragraph 38 of its 28 July 2006 comments, TELUS Communications Company stated that "[t]he number of wireless only households can be easily derived from the Statistics Canada annual surveys."

Comment on the accuracy of estimates of wireless households at the local forbearance region (LFR) level based on the Statistics Canada annual surveys.   Provide relevant details such as sample size by LFR, confidence intervals, coefficients of variation, possible sources of bias in the estimates such as bias due to non-response, and any other technical details deemed relevant.   If Statistics Canada sources of information are used in developing these details, provide complete references for these sources.

MTS Allstream(CRTC)18Aug06-102

Provide copies of reports or any other written material in MTS Allstream's possession or control addressing the relationship between wireline and wireless services in countries other than Canada with respect to the definition of the relevant market for local wireline services in connection with forbearance, or similar, determinations.

MTS Allstream(CRTC)18Aug06-103

 

For each of business and residential, separately for each LFR in MTS Allstream's operating territory, provide an estimate of the ILEC market share loss as of 31 July 2006 assuming no wireless substitution.   Provide details of all assumptions, data, and underlying calculations used in determining these estimates.

Interrogatories for Cogeco Câble Inc., Quebecor Média Inc., Rogers Communications Inc., and Shaw Communications Inc. (Cable)

Cable(CRTC)18Aug06-101

In paragraph 38 of its 28 July 2006 comments, TELUS Communications Company stated that "[t]he number of wireless only households can be easily derived from the Statistics Canada annual surveys."

Comment on the accuracy of estimates of wireless households at the local forbearance region (LFR) level based on the Statistics Canada annual surveys.   Provide relevant details such as sample size by LFR, confidence intervals, coefficients of variation, possible sources of bias in the estimates such as bias due to non-response, and any other technical details deemed relevant.   If Statistics Canada sources of information are used in developing these details, provide complete references for these sources.

Cable(CRTC)18Aug06-102

Provide copies of reports or any other written material in Cable's possession or control addressing the relationship between wireline and wireless services in countries other than Canada with respect to the definition of the relevant market for local wireline services in connection with forbearance, or similar, determinations.

Interrogatories for Canadian Cable Systems Alliance Inc. (CCSA)

CCSA(CRTC)18Aug06-101

In paragraph 38 of its 28 July 2006 comments, TELUS Communications Company stated that "[t]he number of wireless only households can be easily derived from the Statistics Canada annual surveys."

Comment on the accuracy of estimates of wireless households at the local forbearance region (LFR) level based on the Statistics Canada annual surveys.   Provide relevant details such as sample size by LFR, confidence intervals, coefficients of variation, possible sources of bias in the estimates such as bias due to non-response, and any other technical details deemed relevant.   If Statistics Canada sources of information are used in developing these details, provide complete references for these sources.

CCSA(CRTC)18Aug06-102

Provide copies of reports or any other written material in CCSA's possession or control addressing the relationship between wireline and wireless services in countries other than Canada with respect to the definition of the relevant market for local wireline services in connection with forbearance, or similar, determinations.

Date Modified: 2006-08-18
Date modified: