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Telecom Public Notice CRTC 2006-10
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Ottawa, 7 July 2006
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Continued need for the regulatory constraints applicable to toll and toll-free services
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Reference: 8661-C12-200608672 and 8661-B2-200605719
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In this Public Notice, the Commission initiates a proceeding and invites comments on discontinuing certain regulatory constraints with respect to the basic toll services of Aliant Telecom Inc., Bell Canada, MTS Allstream Inc., Ontera, Saskatchewan Telecommunications, Société en commandite Télébec, Sogetel inc., and TELUS Communications Company.
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Application
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1.
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The Commission received an application dated 9 May 2006 by Bell Canada, filed under Part VII of the CRTC Telecommunications Rules of Procedure (Bell Canada's Part VII application), seeking an order discontinuing the application of the regulatory constraints applicable to the company's basic toll schedules in its traditional Ontario and Quebec serving territories.
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2.
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Bell Canada noted that in Forbearance - Regulation of toll services provided by incumbent telephone companies, Telecom Decision CRTC 97-19, 18 December 1997, as amended by Telecom Decision CRTC 97-19-1 dated 9 March 1998 (Decision 97-19), the Commission generally forbore from regulating certain incumbent telephone companies'1 toll and toll-free services, but, pursuant to section 24 of the Telecommunications Act (the Act), made the offering and provision of toll services subject to the basic toll constraints set out below (the basic toll constraints):
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- these telephone companies were to provide to the Commission, and make publicly available, rate schedules setting out the rates for basic toll service. These schedules were to include the 50 percent discount applicable to calls which originated from, and were billed to, the residence service of a registered certified hearing or speech-impaired Telecommunications Devices for the Deaf (TDD) user. The telephone companies were to update their respective schedules within 14 days of any change to the rates for basic toll service;
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- these telephone companies were to provide reasonable direct notice in writing to subscribers in advance of any increases to the basic toll rates;
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- these telephone companies were not to route de-average basic toll rates;
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- the cap on overall North American basic toll rates implemented by the Commission in Review of regulatory framework, Telecom Decision CRTC 97-19, 16 September 1994, was to continue to apply in modified form. Changes within any of the North American basic toll schedules were permissible, provided any rate increases within a schedule were offset by corresponding decreases within the same schedule such that there was no change to that schedule's weighted average rate; and
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- these telephone companies were to ensure that all toll customers and applicants for toll services in their respective serving territories could choose basic toll service at the rates set out in the rate schedules noted in Decision 97-19.
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3.
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Bell Canada noted that the Commission had maintained the basic toll constraints in Regulatory framework for second price cap period, Telecom Decision CRTC 2002-34, 30 May 2002, as amended by Telecom Decision CRTC 2002-34-1 dated 15 July 2002 (Decision 2002-34).
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4.
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Specifically, Bell Canada requested that the Commission issue an order:
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- immediately discontinuing the application of the basic toll constraints to the company in their entirety; or
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- in the alternative, immediately discontinuing the application of the basic toll constraints to the company in their entirety, except for the requirement to retain the 50 percent discount currently applicable to calls which originate from, and are billed to, the residence service of a registered certified hearing or speech-impaired TDD user, provided this condition applies to all long distance service providers in respect of long distance services offered or provided within the company's traditional Ontario and Quebec serving territories;
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- irrespective of whether the Commission granted the above-noted relief, an order that credit card surcharges should no longer continue to be included in the calculation of the average basic toll schedule rate; and
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- such other relief as the Commission considered appropriate in the circumstances.
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5.
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Bell Canada argued that its application was not a request to review and vary Decisions 97-19 and/or 2002-34 relative to the basic toll constraints. Rather, Bell Canada submitted that fundamental changes had occurred since the release of these Decisions that had significantly increased the competitiveness of the long distance market, including the basic toll segment, which, in turn, had increased the level of protection afforded to all toll subscribers in the company's Ontario and Quebec serving territories.
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6.
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Bell Canada noted that these changes included the ubiquitous roll-out of equal access capable switches, and the presence of numerous competing service providers offering stand-alone and bundled long distance services that are often priced lower than the company's long distance services. Another change identified by Bell Canada was the availability of multiple alternative substitute services for traditional wireline long distance service such as voice over Internet protocol (VoIP) services, peer-to-peer (P2P) services, wireless services, dial-around long distance services, and prepaid phone cards.
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7.
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Bell Canada submitted that the continued application of the basic toll constraints to the company was inconsistent with subsections 34(1) and (2) of the Act as the competitive market forces have obviated the need for any of the basic toll constraints. Bell Canada further argued that the discontinuance of the basic toll constraints would be consistent with the telecommunications policy objectives prescribed under sections 7(b), (c), and (f) of the Act, and with the recommendations included in the Telecommunications Policy Review Panel Final Report, released on 22 March 2006.
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Parties' comments
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8.
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The Commission received comments from the Public Interest Advocacy Centre on behalf of the National Anti-Poverty Organization and the Consumers Association of Canada (collectively, the Consumer Groups), dated 5 June 2006, Aliant Telecom, dated 7 June 2006, TCC, dated 9 June 2006, and Yak Communications (Canada) Inc. (Yak), dated 9 June 2006.
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9.
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The Consumer Groups and Yak opposed Bell Canada's Part VII application. The Consumer Groups submitted that they did not have the information required to assess whether the current market for long distance services sufficiently provided competitive alternatives accessible by the customers served by the basic toll rates provided by Bell Canada such that the current protections provided by the basic toll constraints were not needed. Yak disagreed with Bell Canada that, among other things, the competitiveness of the long distance market, particularly with respect to the residential long distance market, had increased significantly since Decisions 97-19 and 2002-34 were issued.
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10.
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In addition, the Consumer Groups submitted that Bell Canada's Part VII application should be dealt with by way of a Public Notice which should include the opportunity for the Commission and parties to address interrogatories and to obtain access to pertinent confidential information.
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11.
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Aliant Telecom and TCC supported Bell Canada's Part VII application.
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12.
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Bell Canada did not file reply comments.
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Basic toll constraints
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13.
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The Commission notes that when it forbore from regulating the toll and toll-free services of certain telephone companies in Decision 97-19, and of Saskatchewan Telecommunications (SaskTel) in SaskTel - Transition to federal regulation, Decision CRTC 2000-150, 9 May 2000, it made the offering and provision of toll services subject to the basic toll constraints to protect the interests of users, including users in high-cost remote areas, in light of the Canadian telecommunications policy objectives as set out in section 7 of the Act.
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14.
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In O.N.Telcom - Implementation of toll competition and related matters, Decision CRTC 2001-583, 13 September 2001 (Decision 2001-583), the Commission forbore from O.N.Telcom's (now Ontera) toll and toll-free services to a similar extent as in Decision 97-19. In the case of Ontera, the basic toll constraints set out in Decision 2001-583 were:
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a) Ontera was to provide to the Commission, and make publicly available, a basic toll schedule setting out the rates for basic toll service. This schedule was to include the 50 percent discount applicable to calls which originated from, and were billed to, the residence service of a registered certified hearing or speech-impaired TDD user. Ontera was to update this schedule within 14 days of any change to the rates for basic toll service;
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b) annual increases in rates of the basic toll schedule were not to exceed the rate of inflation; and
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c) Ontera was to ensure that all message toll customers and applicants for message toll services could choose basic toll service.
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15.
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As set out below, the Commission considers that it is appropriate to initiate a Public Notice proceeding to consider the appropriateness of granting the relief sought in Bell Canada's Part VII application, in whole or in part. Further, given that basic toll constraints also apply to Aliant Telecom, MTS Allstream, Ontera, SaskTel, Sogetel, TCC, and Télébec (collectively, the Companies), the Commission considers that it would be appropriate to also seek comment on whether similar relief should be granted to the Companies.
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Call for comments
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16.
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With this Public Notice, the Commission initiates a proceeding and invites comments on:
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- the appropriateness of granting the relief sought in Bell Canada's Part VII application, in whole or in part; and
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- the appropriateness of granting similar relief to the Companies.
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Procedure
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17.
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The record of the proceeding associated with Bell Canada's Part VII application will be included in the record of the proceeding initiated by this Public Notice.
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18.
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Bell Canada, the Companies, the Consumer Groups, and Yak are made parties to this proceeding.
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19.
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Other parties wishing to participate fully in this proceeding (including receiving copies of all submissions) must notify the Commission of their intention to do so by filling out the online form, or by writing to the Secretary General, CRTC, Ottawa, Ontario, K1A 0N2, or by faxing at: (819) 994-0218 by 28 July 2006 (the registration date). Parties are to provide their email address, where available. If parties do not have access to the Internet, they are to indicate in their notice whether they wish to receive disk versions of hard-copy filings.
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20.
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The Commission will issue on its website, as soon as possible after the registration date, a complete list of interested parties and their mailing address (including their email addresses, if available), identifying those parties who wish to receive disk versions.
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21.
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Any person who wishes merely to file written comments in this proceeding, without receiving copies of the various submissions, may do so by writing to the Commission by 4 August 2006 at the address or fax number noted above, or by filling out the online form.
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22.
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The Commission will not formally acknowledge comments. It will, however, fully consider all comments and they will form part of the public record of the proceeding.
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23.
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Parties, including Bell Canada and the parties who provided comments on Bell Canada's Part VII application are invited to file written comments with the Commission with respect to the issues described in this Public Notice, serving a copy on all other parties, by 18 August 2006. Parties are to include with their comments any evidence that they consider necessary to support their arguments. This includes any research studies or other material that parties wish to refer to in this proceeding.
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24.
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The Commission and the parties may address interrogatories to Bell Canada, to the Companies, to any party who filed comments on Bell Canada's Part VII application, and to any party who filed comments pursuant to paragraph 23. Any such interrogatories must be filed with the Commission and served on the relevant party or parties by 1 September 2006.
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25.
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Responses to those interrogatories are to be filed with the Commission and served on all parties by 22 September 2006.
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26.
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Requests by parties for further responses to their interrogatories, specifying in each case why a further response is both relevant and necessary, and requests for public disclosure of information for which confidentiality has been claimed, setting out in each case the reasons for disclosure, must be filed with the Commission and served on the relevant party or parties by 29 September 2006.
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27.
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Written responses to requests for further responses to interrogatories and for public disclosure must be filed with the Commission and served on the party or parties making the request by 6 October 2006.
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28.
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A determination will be issued with respect to requests for further information and public disclosure as soon as possible. Any information to be provided pursuant to that determination must be filed with the Commission and served on all parties by 27 October 2006.
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29.
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All parties may file written arguments with the Commission on any matter within the scope of this proceeding, serving copies on all other parties, by 3 November 2006.
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30.
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All parties may file reply arguments with the Commission, serving a copy on all other parties, by 10 November 2006.
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31.
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The Commission expects to issue a decision on the issues raised in this Public Notice within 150 days after the record closes.
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32.
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Where a document is to be filed or served by a specific date, the document must be actually received, not merely sent, by that date.
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33.
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Parties can file their submissions electronically or on paper. Submissions longer than five pages should include a summary.
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34.
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Electronic submissions should be in HTML format. As an alternative, those making submissions may use "Microsoft Word" for text and "Microsoft Excel" for spreadsheets.
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35.
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Each paragraph of submissions should be numbered. In addition, please enter the line ***End of document*** following the last paragraph. This will help the Commission verify that the document has not been damaged during transmission.
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36.
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The Commission also encourages parties to monitor the record of this proceeding (and/or the Commission's website) for additional information that they may find useful when preparing their submissions.
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Important notice
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37.
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Note that all information that you provide as part of this public process, except information granted confidentiality, whether sent by postal mail, facsimile, email or through the Commission's website at www.crtc.gc.ca, becomes part of a publicly accessible file and will be posted on the Commission's website. This information includes your personal information, such as your full name, email address, postal/street address, telephone and facsimile number(s), and any other personal information you provide.
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38.
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Documents received electronically or otherwise will be posted on the Commission's website in their entirety exactly as you send them, including any personal information contained therein, in the official language and format in which they are received. Documents not received electronically will be available in PDF format.
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39.
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The personal information you provide will be used and may be disclosed for the purpose for which the information was obtained or compiled by the Commission, or for a use consistent with that purpose.
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Location of CRTC offices
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40.
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Submissions may be examined or will be made available promptly upon request at the Commission offices during normal business hours:
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Toll-free telephone: 1-877-249-2782
Toll-free TDD: 1-877-909-2782
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Central Building
Les Terrasses de la Chaudière
1 Promenade du Portage, Room 206
Gatineau, Quebec J8X 4B1
Tel: (819) 997-2429
Fax: (819) 994-0218
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Metropolitan Place
99 Wyse Road, Suite 1410
Dartmouth, Nova Scotia B3A 4S5
Tel: (902) 426-7997
Fax: (902) 426-2721
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205 Viger Avenue West, Suite 504
Montréal, Quebec H2Z 1G2
Tel: (514) 283-6607
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55 St. Clair Avenue East, Suite 624
Toronto, Ontario M4T 1M2
Tel: (416) 952-9096
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Kensington Building
275 Portage Avenue, Suite 1810
Winnipeg, Manitoba R3B 2B3
Tel: (204) 983-6306 - TDD: (204) 983-8274
Fax: (204) 983-6317
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Cornwall Professional Building
2125 - 11th Avenue, Suite 103
Regina, Saskatchewan S4P 3X3
Tel: (306) 780-3422
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10405 Jasper Avenue, Suite 520
Edmonton, Alberta T5J 3N4
Tel: (780) 495-3224
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580 Hornby Street, Suite 530
Vancouver, British Columbia V6C 3B6
Tel: (604) 666-2111 - TDD: (604) 666-0778
Fax: (604) 666-8322
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Secretary General
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This document is available in alternative format upon request, and may also be examined in PDF format or in HTML at the following Internet site: www.crtc.gc.ca
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______________________
Footnote:
1 These telephone companies were BC TEL (now part of TELUS Communications Company (TCC)); Bell Canada; MTS NetCom Inc. (now MTS Allstream Inc. (MTS Allstream)); The Island Telephone Company Limited, Maritime Tel & Tel Limited, The New Brunswick Telephone Company Limited and NewTel Communications Inc. (now Aliant Telecom Inc. (Aliant Telecom)); TELUS Communications Inc. (now part of TCC); Québec‑Téléphone (now part of TCC); Télébec ltée (now Société en commandite Télébec (Télébec)); and Sogetel inc. (Sogetel).
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Date Modified: 2006-07-07