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Telecom Decision CRTC 2007-70
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See also: 2007-70-1, 2007-70-2
Ottawa, 10 August 2007
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Bell Aliant - Applications for forbearance from the regulation of business local exchange services
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Reference: 8640-B54-200706393, 8640-B54-200706401 (New Brunswick); 8640-B54-200706369 (Newfoundland and Labrador); 8640-B54-200705634, 8640-B54-200706203, 8640-B54-200706210, 8640-B54-200706228, 8640-B54-200706236, 8640-B54-200706244, 8640-B54-200706252, 8640-B54-200706260, 8640-B54-200706278, 8640-B54-200706286, 8640-B54-200706682 (Nova Scotia); 8640-B54-200705775, 8640-B54-200705783 (Ontario); 8640-B54-200706294, 8640-B54-200706302, 8640-B54-200706319, 8640-B54-200706385, 8640-B54-200706708 (Prince Edward Island); 8640-C12-200706351 (general)
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In this Decision, the Commission forbears from regulating Bell Aliant Regional Communications, Limited Partnership's (Bell Aliant) business local exchange services in 18 exchanges in Nova Scotia, New Brunswick, Newfoundland and Labrador, and Prince Edward Island. The Commission also determines that it will forbear from regulating Bell Aliant's business local exchange services in one exchange in Ontario once it has determined that Bell Aliant has met the competitor quality of service criterion for the Ontario and Quebec portion of its serving territory.
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Introduction
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1.
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The Commission received applications by Bell Aliant Regional Communications, Limited Partnership (Bell Aliant), dated between 13 and 30 April 2007, in which the company requested forbearance from the regulation of business local exchange services1 in 72 exchanges. These exchanges are located in Nova Scotia, New Brunswick, Newfoundland and Labrador, Prince Edward Island, and Ontario and include exchanges in the priority census metropolitan areas of Halifax, London, and Toronto. A list of these exchanges is set out in Appendix 1 to this Decision.
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2.
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In a letter dated 7 May 2007, the Commission directed incumbent local exchange carriers (ILECs), competitive local exchange carriers, and wireless service providers to provide additional information regarding current local forbearance applications.
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3.
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The Commission received submissions and/or data regarding Bell Aliant's applications and/or local forbearance applications in general from Access Communications Co-operative Limited;Amtelecom Cable Limited Partnership; Bell Aliant; Bell Canada; Bell Mobility Inc.; Bragg Communications Inc., carrying on business as EastLink (EastLink); Bruce Telecom; Canadian Cable Systems Alliance Inc.; Cogeco Cable Inc.; Execulink Telecom Inc. (Execulink); Globility Communications Corporation; Maskatel inc.; Mountain Cablevision Ltd; MTS Allstream Inc. (MTS Allstream); Primus Telecommunications Canada Inc.; the Public Interest Advocacy Centre on behalf of the Consumers' Association of Canada and the National Anti-Poverty Organization; Quebecor Media Inc., on behalf of Videotron Ltd.; Rogers Communications Inc.; Saskatchewan Telecommunications; Shaw Communications Inc.; 9164-3122 Québec inc., doing business as Sogetel Numérique; Téléphone Drummond inc.; TELUS Communications Company; Wightman Telecom Ltd. (Wightman); and WTC Communications.
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4.
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The record of this proceeding closed with Bell Aliant's reply comments, dated 11 June 2007.
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5.
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The Commission has assessed Bell Aliant's applications based on the local forbearance test set out in Telecom Decision 2006-15, as amended by the Governor in Council's Order Varying Telecom Decision CRTC 2006-15, P.C. 2007-532, 4 April 2007 (modified Telecom Decision 2006-15), by examining the following:
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a) Product market
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b) Competitor presence test
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c) Competitor quality of service (Q of S) results
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d) Communications plan
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6.
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The Commission notes that it has already addressed an additional issue raised by Bell Aliant in its applications, namely limitation of liability provisions, in Telecom Decision 2007-59.
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Commission's analysis and determinations
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a) Product market
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7.
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Bell Aliant requested forbearance from the regulation of the business local exchange services set out in Appendix 2 to this Decision. The company also requested forbearance from the regulation of various Centrex services, which are set out in Appendix 3 to this Decision.
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8.
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MTS Allstream and EastLink raised objections to the inclusion of Centrex services in the relevant product market.
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9.
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The Commission notes that it will be issuing a public notice shortly to address the issue of Centrex services in relation to applications for forbearance from the regulation of business local exchange services. Accordingly, the Commission will not consider Bell Aliant's application regarding the above-noted Centrex services in this Decision.
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10.
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With respect to the list of services set out in Appendix 2, the Commission notes that all but the following were included in the list of services set out in Telecom Decision 2005-35: Hotel Service, Charitable Access Service, Automatic Dialing Service, Jack and Plug Equipment, Remote Electronic Metering Access, and Business IP Voice Standard. The Commission considers that the above-noted services fall within the definition of local exchange services as set out in Telecom Public Notice 2005-2.
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11.
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Accordingly, the Commission considers that the list of services proposed by Bell Aliant for forbearance as set out in Appendix 2 is appropriate.
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b) Competitor presence test
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12.
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The Commission notes that Bell Aliant requested forbearance from the regulation of business local exchange services in 54 exchanges in Nova Scotia, 2 exchanges in New Brunswick, 1 exchange in Newfoundland and Labrador, 12 exchanges in Prince Edward Island, and 3 exchanges in Ontario.
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13.
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The Commission notes that for the exchanges of Collingwood in Nova Scotia, St. John's in Newfoundland and Labrador, Moncton and Sackville in New Brunswick, and Orangeville in Ontario, information provided by parties confirms that there is, in addition to Bell Aliant, at least one other independent facilities-based, fixed-line telecommunications service provider that offers local exchange services in the market and is capable of serving at least 75 percent of the number of business local exchange service lines that Bell Aliant is capable of serving. Accordingly, the Commission determines that these 5 exchanges meet the competitor presence test.
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14.
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The Commission notes Bell Aliant's submission that competitors were capable of serving at least 75 percent of the number of business local exchange service lines that Bell Aliant is capable of serving in the exchanges of Ailsa Craig and Strathroy in Ontario; Barrington, Bridgetown, Digby, Musquodoboit Harbour, and Shelburne in Nova Scotia; and Alberton, Georgetown, and O'Leary in Prince Edward Island. The Commission also notes Execulink's and EastLink's submissions that they did not provide service or had limited capability to provide service in each of these 10 exchanges in Ontario and the Atlantic provinces, respectively. Based on its review of the competitors' data, the Commission considers that the above-noted exchanges do not meet the competitor presence test.
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15.
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The Commission notes that for the remaining 48 exchanges in Nova Scotia and the remaining 9 exchanges in Prince Edward Island, EastLink submitted that it was unable to provide an estimate of the business lines that it was capable of serving and, therefore, could not confirm whether it was capable of serving 75 percent of the business local exchange lines that Bell Aliant was capable of serving. The Commission considers that EastLink has provided some valid reasons as to why it could not provide this type of information.
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16.
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The Commission notes Bell Aliant's submission that in the case of cable companies that offered both residential and business local exchange services using their cable network, such as EastLink, it would be reasonable to consider the market coverage of their cable networks to be the same in both markets. The Commission further notes Bell Aliant's proposal that, accordingly, the residential market coverage be used as an estimate of the business market coverage. In this regard, the Commission notes that residential and business serving areas may not be in the same locations; for example, business parks do not typically include households. Therefore, the Commission considers that it is inappropriate to use residential coverage as a proxy for business coverage.
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17.
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The Commission, however, considers that it would be unreasonable to deny forbearance for these exchanges strictly on the basis that the competitor was unable to provide evidence of its presence. In the Commission's experience, a competitor does not win every customer it is capable of serving. The Commission considers that it is reasonable to infer that a competitor is capable of serving a much larger percentage of the market than it currently serves. In the Commission's view, a competitor can be reasonably expected to be capable of serving at least 3 times the number of customers that it currently serves. In this case, the Commission notes that EastLink has at least 25 percent market share in the following exchanges: Bridgewater, French Village, Hubbards, Ketch Harbour, Lahave, Liverpool, Lunenburg, Mahone Bay, Oxford, Prospect Road, Riverport, Sackville, and St. Margarets in Nova Scotia and the exchange of Montague in Prince Edward Island.
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18.
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The Commission considers, based on the evidence filed in this proceeding, that it is reasonable to conclude that EastLink is capable of serving at least 75 percent of the number of business local exchange service lines that Bell Aliant is capable of serving in the above-noted exchanges. Accordingly, the Commission determines that these exchanges meet the competitor presence test. The Commission finds that the remaining 34 exchanges do not meet the competitor presence test.
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19.
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A list of the exchanges that meet the competitor presence test is set out in Appendix 4 to this Decision.
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c) Competitor Q of S results
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20.
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The Commission notes that, as it determined in Telecom Decision 2007-59, Bell Aliant's Q of S results meet the competitor Q of S criterion insofar as they relate to the Atlantic provinces part of its serving territory.
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21.
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Further, the Commission notes that, as it determined in Telecom Decision 2007-67, Bell Aliant's Q of S results do not meet the competitor Q of S criterion insofar as they relate to the Ontario and Quebec part of its serving territory.
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d) Communications plan
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22.
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The Commission notes that modified Telecom Decision 2006-15 states that an ILEC's communications plan should describe how the ILEC intends to explain local forbearance to customers in the relevant market, provide information concerning the ongoing availability of stand-alone primary exchange service in the market, and provide contact information for customers who have questions or concerns.
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23.
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The Commission has reviewed Bell Aliant's draft communications plan and is satisfied that it generally meets the information requirements set out in modified Telecom Decision 2006-15. However, the Commission considers that the company should make the following changes to the plan (italics represent revisions to be made):
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i) Add the following sentence as the new second paragraph of the section entitled "Changes to the regulation of your local phone service":
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The CRTC has directed Bell Aliant to maintain certain requirements, such as continuing to provide local telephone access services on a stand-alone basis in forborne areas at no more than the most recently CRTC-approved rates.
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ii) Provide mailing addresses for each organization listed in the communications plan.
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iii) Add the following information to the contact list, after Bell Aliant's contact information and before the Commission's contact information:
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Commissioner for Complaints for Telecommunications Services (CCTS)
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Website
www.ccts-cprst.ca
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Email
General inquiries: info@ccts-cprst.ca
Complaints: complaints@ccts-cprst.ca
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Telephone
Toll-free: 1-888-221-1687
Ottawa area: 613-244-9585
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Toll-free fax: 1-877-782-2924
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Postal address
P.O. Box 81088, Ottawa, ON K1P 1B1
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24.
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The Commission approves the proposed business market communications plan with the revisions outlined above. The Commission directs Bell Aliant to provide the resulting communications materials to its customers in both official languages, where appropriate.
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Conclusion
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25.
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The Commission determines that Bell Aliant's applications regarding the 18 exchanges listed in Appendix 4 meet all the local forbearance criteria set out in modified Telecom Decision 2006-15.
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26.
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Pursuant to subsection 34(1) of the Telecommunications Act (the Act), the Commission finds as a question of fact that a determination to forbear, to the extent specified in modified Telecom Decision 2006-15, from the regulation of business local exchange services listed in Appendix 2 and future services that fall within the definition of local exchange services set out in Telecom Public Notice 2005-2 as they pertain to business customers only, in the 18 exchanges listed in Appendix 4, would be consistent with the Canadian telecommunications policy objectives set out in section 7 of the Act.
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27.
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Pursuant to subsection 34(2) of the Act, the Commission finds as a question of fact that these business local exchange services are subject to a level of competition in these exchanges sufficient to protect the interests of users of these services.
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28.
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Pursuant to subsection 34(3) of the Act, the Commission finds as a question of fact that to forbear, to the extent specified in modified Telecom Decision 2006-15, from regulating these business local exchange services in these exchanges would be unlikely to impair unduly the continuance of a competitive market for these services.
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29.
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In light of the above, the Commission approves Bell Aliant's applications for forbearance from the regulation of the local exchange services listed in Appendix 2 and future services that fall within the definition of local exchange services set out in Telecom Public Notice 2005-2, as they pertain to business customers only, in the 18 exchanges listed in Appendix 4, subject to the powers and duties that the Commission has retained as set out in modified Telecom Decision 2006-15. This determination takes effect as of the date of this Decision. The Commission directs Bell Aliant to file for Commission approval revised tariff pages within 30 days.
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30.
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The Commission determines that for the exchange of Orangeville, Bell Aliant's application meets all the local forbearance criteria set out in modified Telecom Decision 2006-15, except for the competitor Q of S criterion.
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31.
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Accordingly, the Commission will forbear from regulating the local exchange services listed in Appendix 2 and future services that fall within the definition of local exchange services set out in Telecom Public Notice 2005-2, as they pertain to business customers only, in the Orangeville exchange, once the Commission determines that Bell Aliant has met the competitor Q of S criterion for the Ontario and Quebec part of its serving territory.
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32.
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The Commission notes, however, that modified Telecom Decision 2006-15 states that if, prior to granting forbearance, the Commission was informed that an ILEC's application was based on competition in the relevant market from an independent fixed-line telecommunications service provider that, including all of its affiliates, had less than 20,000 local exchange service customers in Canada, the forbearance would not become effective until at least 18 months after the day on which the service provider began providing local exchange services in that market.
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33.
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The Commission notes that Wightman is the telecommunications service provider in the Orangeville exchange in Ontario and that, based on the Commission's information, Wightman has fewer than 20,000 local exchange customers. Further, the Commission notes that Wightman began offering service in the Orangeville exchange on 3 April 2006 and that Wightman has attracted some business customers in the exchange. The Commission considers that, in the circumstances of this case, forbearance will become effective on expiry of the minimum period of 18 months after the day on which Wightman began providing local exchange services in that market, subject to the Commission determining that Bell Aliant meets the competitor Q of S criterion.
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34.
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The Commission determines that Bell Aliant's applications do not meet all the local forbearance criteria set out in modified Telecom Decision 2006-15 for the remaining 53 exchanges.
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Related documents
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Bell Aliant - Applications for forbearance from the regulation of residential local exchange services, Telecom Decision CRTC 2007-67, 9 August 2007
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Bell Aliant - Applications for forbearance from the regulation of residential local exchange services, Telecom Decision CRTC 2007-59, 25 July 2007, as amended by Telecom Decision CRTC 2007-59-1, 3 August 2007
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Forbearance from the regulation of retail local exchange services, Telecom Decision CRTC 2006-15, 6 April 2006, as amended by the Governor in Council's Order Varying Telecom Decision CRTC 2006-15, P.C. 2007-532, 4 April 2007
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List of services within the scope of the proceeding on forbearance from the regulation of local exchange services, Telecom Decision CRTC 2005-35, 15 June 2005, as amended by Telecom Decision CRTC 2005-35-1, 14 July 2005
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Forbearance from regulation of local exchange services, Telecom Public Notice CRTC 2005-2, 28 April 2005
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Finalization of quality of service rate rebate plan for competitors, Telecom Decision CRTC 2005-20, 31 March 2005
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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 In this Decision, "business local exchange services" refers to local exchange services used by business customers to access the public switched telephone network and any associated service charges, features, and ancillary services.
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Local exchange services eligible for forbearance from regulation in this Decision (for business customers only):
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Nova Scotia
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Tariff
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Item
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List of services
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21491
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125.3
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Extra Listings
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21491
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125.4
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Non-listed, Non-published service
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21491
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125.5
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Contract Period for Chargeable Extra Listings
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21491
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125.6
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Directories and Listings - Rates and Charges
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21491
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205.2
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Business Single Line Access Service
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21491
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205.4
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Business Multi-Line Access Service
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21491
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304
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Enhanced Local Calling Features
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21491
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308
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Internet Call Manager
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21491
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310.1
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Voice Messaging Services
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|
21491
|
312
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900 Call Denial/Blocking Service
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|
21491
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316
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Universal Messaging
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|
21491
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326
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Music on Hold
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21491
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328
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Direct-Inward-Dialing for Access Service
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21491
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338
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Answer Supervision
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21491
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358
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Data Line Support Service
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21491
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502
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Digital Exchange Access
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21491
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504
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Megalink Service
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21491
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506
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Microlink Service
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10001
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631
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Business Message Rate Service
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10001
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2100-2110
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Local Conference Service
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21491
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205.6
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Hotel Service
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21491
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205.7
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Charitable Access Service
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Prince Edward Island
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Tariff
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Item
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List of services
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21491
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125.3
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Extra Listings
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21491
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125.4
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Non-listed, Non-published service
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21491
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125.5
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Contract Period for Chargeable Extra Listings
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21491
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125.6
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Directories and Listings - Rates and Charges
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21491
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205.2
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Business Single Line Access Service
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21491
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205.4
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Business Multi-Line Access Service
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21491
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304
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Enhanced Local Calling Features
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21491
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308
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Internet Call Manager
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21491
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310.1
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Voice Messaging Services
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|
21491
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312
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900 Call Denial/Blocking Service
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|
21491
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316
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Universal Messaging
|
|
21491
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326
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Music on Hold
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21491
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328
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Direct-Inward-Dialing for Access Service
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|
21491
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338
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Answer Supervision
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|
21491
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358
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Data Line Support Service
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21491
|
360
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Duplicate Service
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21491
|
502
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Digital Exchange Access
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21491
|
504
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Megalink Service
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21491
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506
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Microlink Service
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11001
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910-915
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Local Conference Service
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21491
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205.6
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Hotel Service
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21491
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205.7
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Charitable Access Service
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New Brunswick
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Tariff
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Item
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List of services
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21491
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125.3
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Extra Listings
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21491
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125.4
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Non-listed, Non-published service
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21491
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125.5
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Contract Period for Chargeable Extra Listings
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21491
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125.6
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Directories and Listings - Rates and Charges
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21491
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205.2
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Business Single Line Access Service
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21491
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205.4
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Business Multi-Line Access Service
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21491
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304
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Enhanced Local Calling Features
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21491
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308
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Internet Call Manager
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21491
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310.1
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Voice Messaging Services
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|
21491
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312
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900 Call Denial/Blocking Service
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|
21491
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316
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Universal Messaging
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|
21491
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324
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Network Access Busy Out Features
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|
21491
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326
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Music on Hold
|
|
21491
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328
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Direct-Inward-Dialing for Access Service
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|
21491
|
338
|
Answer Supervision
|
|
21491
|
356
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Province Wide Suppressed Ringing Service
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|
21491
|
358
|
Data Line Support Service
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|
21491
|
502
|
Digital Exchange Access
|
|
21491
|
503
|
Digital Switched Service
|
|
21491
|
504
|
Megalink Service
|
|
21491
|
506
|
Microlink Service
|
|
21491
|
825
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Business Communications Service (Hotel and Motel BCS)
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|
12001
|
173
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Guest Voice Service
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|
12001
|
225
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TAS ID Service
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|
12001
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190
|
Automatic Dialing Service
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|
21491
|
205.7
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Charitable Access Service
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|
21491
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332
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Jack and Plug Equipment
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Newfoundland and Labrador
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Tariff
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Item
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List of services
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|
21491
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125.3
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Extra Listings
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21491
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125.4
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Non-listed, Non-published service
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|
21491
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125.5
|
Contract Period for Chargeable Extra Listings
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|
21491
|
125.6
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Directories and Listings - Rates and Charges
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|
21491
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205.2
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Business Single Line Access Service
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|
21491
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205.4
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Business Multi-Line Access Service
|
|
21491
|
304
|
Enhanced Local Calling Features
|
|
21491
|
308
|
Internet Call Manager
|
|
21491
|
310.1
|
Voice Messaging Services
|
|
21491
|
312
|
900 Call Denial/Blocking Service
|
|
21491
|
316
|
Universal Messaging
|
|
21491
|
326
|
Music on Hold
|
|
21491
|
328
|
Direct-Inward-Dialing for Access Service
|
|
21491
|
338
|
Answer Supervision
|
|
21491
|
502
|
Digital Exchange Access
|
|
21491
|
503
|
Digital Switched Service
|
|
21491
|
504
|
Megalink Service
|
|
21491
|
506
|
Microlink Service
|
|
21491
|
825
|
Business Communications Service (Hotel and Motel BCS)
|
|
21491
|
205.7
|
Charitable Access Service
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|
Ontario
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|
Tariff
|
Item
|
List of services
|
|
21560
|
29
|
Telephone Set Loss Charge
|
|
21560
|
70
|
Rate Schedules for Primary Exchange (Local) Service
|
|
21560
|
72
|
Reference of Calls
|
|
21560
|
73
|
Telephone Number Services
|
|
21560
|
82
|
Toll Restriction
|
|
21560
|
86
|
Call Display Blocking
|
|
21560
|
220
|
Extra Listings - Omission of a Primary Exchange Listing
|
|
21560
|
430
|
Private Branch Exchange Service
|
|
21560
|
500
|
Direct Inward Dialing
|
|
21560
|
1030
|
Short-Term Service
|
|
21560
|
1060
|
Service on Stationary Boats, Ships, Trailers and Trains
|
|
21560
|
1130
|
Suspension of Service
|
|
21560
|
2025
|
Integrated Voice Messaging Service (IVMS)
|
|
21560
|
2030
|
Universal Messaging
|
|
21560
|
2150
|
Push-Button Dialing (Touch-Tone)
|
|
21560
|
2165
|
Calling Features
|
|
21560
|
2180
|
PrimeLine Executive
|
|
21560
|
2185
|
Single Number Reach
|
|
21560
|
2200
|
Call Blocking Service
|
|
21560
|
2205
|
Suppressed Ringing Service
|
|
21560
|
2210
|
SimplyOne Service
|
|
21560
|
2300
|
Telephone Station Equipment
|
|
21560
|
4699
|
Internet Call Display Service
|
|
21560
|
5201
|
Megalink Service
|
|
21560
|
5210
|
Microlink Services
|
|
21560
|
5300
|
Digital Exchange Access
|
|
21560
|
6000
|
Intelligent Routing
|
|
21560
|
7010
|
Managed Internet Protocol Telephony Service
|
|
21560
|
515
|
900 Service
|
|
21560
|
50
|
Remote Electronic Metering Access
|
|
21560
|
7026
|
Business IP Voice Standard
|
Date Modified: 2007-08-10