ARCHIVED - Telecom Commission Letter - 8640-B2-200609034

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Letter

Ottawa, 10 May 2007

BY E-MAIL

Our File #: 8640-B2-200609034

To: Distribution List

Re: Application for forbearance of discretionary services

On 10 July 2006, Bell Aliant Regional Communications, Limited Partnership, Bell Canada and Saskatchewan Telecommunications (the Companies) filed an application with the Commission for forbearance of discretionary services, pursuant to Part VII of the CRTC Telecommunications Rules of Procedure. On the same day, as part of the Review of price cap framework, Telecom Public Notice CRTC 2006-5, 9 May 2006 (Public Notice 2006-5), the Companies also filed an application requesting that the Commission uncap discretionary services.

On 1 August 2006, the Commission notified parties, by letter, that Commission staff was reviewing the application for forbearance of discretionary services, and advised parties to refrain from filing interventions until further notice.

On 30 October 2006, the Commission notified parties, by letter, that the proceeding initiated by the Public Notice 2006-5 addressed issues which were also raised by the Companies in their Part VII application. Commission staff therefore deferred consideration of the Companies' Part VII application until the Commission had concluded the proceeding associated with Public Notice 2006-5.

On 30 April 2007, the Commission issued Price cap framework for large incumbent local exchange carriers , Telecom Decision CRTC 2007-27, 30 April 2007 (Decision 2007-27) in which the Commission determined that residential optional local services would be assigned to the Uncapped Services basket and that these services would no longer be subject to any upper pricing constraints.

In addition, Commission staff notes that after the Companies submitted their application for forbearance of discretionary services, the Governor in Council issued Order varying Telecom Decision CRTC 2006-15, Order in Council P.C. 2007-532, issued 5 April 2007 (the Forbearance Order), which changed the Commission's forbearance test set out in Forbearance from the regulation of local retail services , Telecom Decision CRTC 2006-15, 6 April 2006 (Decision 2006-15).

Commission staff notes that applications have been filed pursuant to the framework established in Decision 2006-15 as modified by the Forbearance Order requesting forbearance from the regulation of local services in several exchanges. P ursuant to Decision 2006-15, the Commission found that optional local services were part of the relevant product market for the purpose of the local forbearance framework. Commission staff notes that the majority of the services for which the Companies sought forbearance in their application for forbearance of discretionary services are currently being considered for forbearance as part of the Companies' applications for local forbearance pursuant to Decision 2006-15 as modified by the Forbearance Order.

In light of the above, Commission staff is of the view that the regulatory context in which the Companies' forbearance application for discretionary services was submitted has significantly changed. Therefore, Commission staff hereby closes the above noted file. The Companies may, however, file an amended application if they consider that any outstanding issues should be addressed.

Sincerely,

Len Katz

Executive Director
Broadcasting & Telecommunications

cc.: Marie-France Marquis
      Manager, Economic and Regulatory Analysis - Telecom 
      (819) 953-0631

E-mail addresses:

regulatory.affairs@telus.comdocument.control@sasktel.sk.canatalie.macdonald@corp.eastlink.caregulatory@bell.aliant.cabell.regulatory@bell.caiworkstation@mtsallstream.comdavid.watt@rci.rogers.comcataylor@cyberus.cabefro@pilc.mb.cabywil@pilc.mb.cajeffrey.fan@ubs.comdma2@telusplanet.netdmckeown@viewcom.capiac@piac.castinsond@comnet.calefebvre@rogers.comcrtc@mhgoldberg.comabriggs@cogeco.carob.olenick@tbaytel.comghariton@sympatico.calisangus@angustel.camgm@stephenjohnsonca.comBrand.Inlow@calgary.casupport@bcpiac.comduchesne@consommateur.qc.cachristian.tacit@cybersurf.comkcollins@corporate.fcibroadband.comreglementa@telebec.comcedwards@ccsa.cable.caregaffairs@quebecor.combenrovet@rogers.comtelecom.regulatory@cogeco.comandre.labrie@mcc.gouv.qc.caregulatoryaffairs@nwtel.ca

Date Modified: 2007-05-10

Date modified: