ARCHIVED - Telecom Commission Letter - 8661-Y6-200804106

Letter

Ottawa, 11 July 2008

File No.:   8661-Y6-200804106

BY EMAIL

Mr. Mirko Bibic
Chief, Regulatory Affairs
Bell Canada
bell.regulatory@bell.ca

and

Mr. Simon Lockie
Chief Legal Officer
Yak Communications (Canada) Corp.
simonlockie@globealive.com

Dear Sirs:

Re:   Request by Bell Canada et al. to defer consideration of Yak Communications Part VII a pplication to review certain Billing and Collection Service costs

By letter dated 14 April 2008, Bell Canada, Bell Aliant Regional, Limited Partnership and Saskatchewan Telecommunications (Sasktel) (collectively Bell Canada et al.) requested that the Commission defer consideration of an application made by Yak Communication (Canada) Corp. (Yak) on 14 March 2008 ( 14 March 2008 application).   In that application, Yak requested that the Commission review and update costs associated with the Billing and Collection Service (BCS) processing charge rates of Bell Canada et al. , MTS Allstream Inc. (MTS Allstream) and TELUS Communications Company (TCC) (collectively, the ILECs).  

Bell Canada et al. submitted that consideration of Yak's 14 March 2008 application should be deferred in light of Bell Canada et al.'s intention to file an application to review and vary the recent wholesale service classification of BCS and associated pricing principles in Telecom Decision 2008-17 [1] (the review and vary application).   Bell Canada et al. filed the review and vary application on 15 May 2008 .   In that application, Bell Canada et al. requested that BCS be re-classified from the Interconnection category to which it was assigned in Telecom Decision 2008-17, and that it be provided with the flexibility to price BCS rates with a mark-up greater than 15%.

Bell Canada et al. submitted that the BCS appeal would create uncertainty with respect to the regulatory status of BCS and that, if that appeal is allowed, there is a very real possibility that Yak's application will be rendered moot.   By letter dated 15 April 2008, TCC supported Bell Canada et al. 's request.

The Commission considers that the nature of the regulatory uncertainty created by Bell Canada et al. 's BCS appeal with respect to the wholesale service classification and mark-up of BCS does not support its request to defer the review of costs associated with BCS processing charge rates. The Commission notes that, in assessing whether tariffed rates are just and reasonable for the purposes of the Telecommunications Act , it also has regard to the costs of the service.

The Commission further notes that, by letter dated 22 June 2007, it closed the file associated with a previous application, made by Yak in 2006, that also requested the review of the ILECs' BCS processing charge rates (2006 application).   The file associated with Yak's 2006 application was closed on the basis that it raised issues that might be materially affected by the Commission's determinations in the Phase II review proceeding.    

In its 22 June 2007 letter, the Commission also invited Yak to resubmit its application after the Commission's decision in the Phase II review proceeding, taking into account the determinations made in that proceeding.   The Phase II review proceeding concluded with the issuance of Review of certain Phase II costing issues , Telecom Decision CRTC 2008-14, 21 February 2008 .   A follow-up proceeding to the Phase II review, referenced by Yak in its 14 March 2008 application, is currently on-going (Phase II follow-up proceeding).

The Commission therefore denies Bell Canada et al. 's request to defer consideration of Yak's 14 March 2008 application.   The process for the consideration of Yak's 14 March 2008 application will be established at the conclusion of the Phase II follow-up proceeding.

Yours sincerely,

Original signed by

Robert A. Morin
Secretary General

c.c.:   MTS Allstream Inc. 
         SaskTel  
         TCC

[1]      Revised regulatory framework for wholesale services and definition of essential service, Telecom Decision CRTC 2008-17, 3 March 2008