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Telecom Public Notice CRTC 2006-12
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Ottawa, 1 September 2006 |
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Proceeding to reassess certain aspects of the local forbearance
framework established in Decision 2006-15
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Reference:
8663-C12-200610924, 8663-C12-200605587,
8640-C12-200607210
and 8640-C12-200505076 |
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In this Public Notice, the Commission
initiates a proceeding seeking comments
regarding changes to market share loss thresholds established in
Forbearance from the regulation of retail local exchange services,
Telecom Decision CRTC 2006-15,
6 April 2006. |
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Given their relationship to market share
loss levels, the issues identified in 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, will also be examined in this proceeding. |
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Background
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1. |
In Forbearance from the regulation of
retail local exchange services, Telecom Decision CRTC 2006-15,
6 April 2006 (Decision 2006-15),
the Commission established a framework for assessing applications
for forbearance with respect to local exchange services pursuant to
expedited procedures. The Commission determined that forbearance would
be appropriate in accordance with the framework set out in Decision
2006-15, where, among
other things, the incumbent local exchange carrier (ILEC) had lost
at least 25 percent market share in a relevant market. |
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2. |
In Reconsideration of Regulatory
framework for voice communication services using Internet Protocol,
Telecom Decision CRTC 2006-53,
1 September 2006 (Decision 2006-53),
released today, the Commission noted that the record of the proceeding
resulting in that Decision demonstrated that competition in the residential
local services market had developed rapidly in the last year and a
half. |
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3. |
The Commission also noted that the record
of the proceeding resulting in Decision 2006-15
was focused largely on year-end 2004 figures. Based on those figures,
in Decision 2006-15
the Commission set a 25 percent threshold for ILEC market share
loss as one of the criteria for forbearance. The Commission indicated
in Decision 2006-15
that setting this threshold was not a precise scientific exercise,
but one that sought to balance the need for competition in a relevant
market to be sustainable and the desire to ensure that customers reap
the benefits of competition in that market without undue delay. |
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4. |
In Decision 2006-53,
the Commission considered that the data provided in the proceeding
leading to that Decision, which included actuals up to May 2006, indicated
that growth in residential local voice over Internet Protocol (VoIP)
services was resulting in significantly stronger competition in the
local exchange services market. The Commission noted that a large
proportion of the competitive share of the local exchange services
market was facilities-based. The Commission considered, therefore,
that local exchange competition in the residential market was more
deeply rooted than it had appeared to be based on the record of the
proceeding that led to Decision 2006-15.
Given these changes in market conditions, the Commission considered
that it would be appropriate to reassess whether or not the market
share forbearance criterion threshold of 25 percent with respect to
residential services set out in Decision 2006-15
continued to strike the appropriate balance between the competing
interests identified in that Decision. |
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5. |
In addition, the Commission noted that
while the evidence in the proceeding leading to Decision 2006-53
had focused substantially on the residential local services market,
competition in the business services market had also continued to
grow and might manifest similar characteristics. The Commission considered
that it would therefore also be appropriate to reconsider the 25 percent
market share forbearance criterion with respect to business services. |
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6. |
In light of its determination to reassess
the 25 percent market share forbearance criterion, the Commission
considered that it would also be appropriate to reassess the 20 percent
market share loss threshold applicable to the transitional measure
related to the local winback rule established in Decision 2006-15. |
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7. |
In 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), the
Commission invited comments regarding whether mobile wireless services,
or a subset thereof, should be considered to be part of the same relevant
market as wireline local exchange services for forbearance analysis
purposes. The Commission also invited comments regarding several related
issues. |
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Issues to be addressed in this proceeding
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8. |
The Commission invites comments regarding
whether the market share forbearance criterion threshold of 25 percent
set out in Decision 2006-15
continues to strike the appropriate balance between the competing
interests identified in that Decision with respect to both residential
and business services. To the extent that parties consider that the
threshold for either of these markets should be adjusted, comments
are invited regarding an appropriate forbearance threshold. |
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9. |
The Commission also invites comments regarding
whether the 20 percent market share loss threshold applicable to the
transitional measure related to the local winback rule established
in Decision 2006-15
remains appropriate. To the extent that parties consider that this
threshold should be adjusted, comments are invited regarding an appropriate
market share loss threshold. |
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10. |
The Commission notes that, other than the
issues referred to in paragraph 11 below, the proceeding initiated
by this Public Notice is limited to an examination of the appropriateness
of the market share loss levels established in Decision 2006-15,
and does not include within its scope, for instance, the four remaining
criteria identified in Decision 2006-15
with respect to market power, nor whether market share loss is an
appropriate criterion. |
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11. |
In addition, given the relationship between
the issues related to mobile wireless services and relevant market,
and the issues related to market share loss levels, the Commission
considers that it would be appropriate and more efficient to address
the issues identified in Public Notice 2006-9
(the mobile wireless services issues) in this proceeding. |
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Procedure
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12. |
Coincident with the issuance of this
Public Notice, the Commission has addressed interrogatories to the
ILECs, competitive local exchange carriers (CLECs), and VoIP resellers
with respect to issues regarding the market share loss thresholds. |
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13. |
The record of the proceeding initiated
by Public Notice 2006-9 will form part
of the record of this proceeding. The balance of the procedure set
out in Public Notice 2006-9 as of this
date is replaced by the procedure set out in this Public Notice. |
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14. |
All parties set out in the interested parties
lists associated with the proceedings initiated by Reconsideration
of Regulatory framework for voice communication services using
Internet Protocol, Telecom Decision CRTC 2005-28,
Telecom Public Notice CRTC 2006-6, 10 May
2006 and Public Notice 2006-9, and all
CLECs, are made parties to this proceeding. |
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15. |
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 11 September
2006 (the registration date). They are to indicate in the notice
their email addresses, 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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16. |
The Commission will issue on its website,
as soon as possible after the registration date, a complete list of
parties and their mailing addresses (including their email addresses,
if available), identifying those parties who wish to receive disk
versions. |
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17. |
Any person who wishes merely to file written
comments, without receiving copies of the various submissions,
may do so by writing to the Commission by 22 September 2006 at
the address or fax number noted above or by filling out the online
form. |
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18. |
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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19. |
Responses to interrogatories issued pursuant
to the procedure in Public Notice 2006-9,
and to interrogatories issued pursuant to paragraph 12 above, are
to be filed with the Commission and served on all parties by 15 September
2006. |
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20. |
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
21 September 2006. |
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21. |
Written responses to requests for further
responses to the interrogatories and for public disclosure must be
filed with the Commission and served on the party or parties making
the request by 27 September 2006. |
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22. |
Determinations with respect to requests
for further information and for public disclosure will be issued by
6 October 2006. Any information to be provided pursuant to those
determinations must be filed with the Commission and served on all
parties, by 12 October 2006. |
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23. |
All parties may file with the Commission,
serving a copy on all other parties: (1) comments with regard to the
market share loss issues, and (2) final comments with regard to the
mobile wireless services issues, by 19 October 2006. |
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24. |
All parties may file reply comments with
the Commission, serving a copy on all other parties, by 26 October
2006. |
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25. |
The Commission expects to issue a
decision on the issues raised in this Public Notice within 120 days
after the record closes. |
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26. |
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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27. |
Parties may file their submissions
electronically or on paper. Submissions longer than five pages should
include a summary. |
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28. |
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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29. |
Each paragraph of all submissions should
be numbered. In addition, the line ***End of document*** should be
entered following the last paragraph. This will help the Commission
verify that the document has not been damaged during electronic
transmission. |
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30. |
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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31. |
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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32. |
Documents received electronically or
otherwise will be put 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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33. |
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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34. |
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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