ARCHIVED - Letter
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Ottawa, 11 December 2008
File No.: 8661-P54-200815251
By E-mail
Distribution List
Dear Sir/Madam:
RE: Public Works and Government Services Canada Application for a Commission Decision pursuant to Section 27 of the Telecommunications Act regarding telecommunications services provided by Bell Canada - Interim Disposition
On 10 November 2008, the Commission received an application by Public Works and Government Services Canada (PWGSC) for a Commission determination in relation to the continued delivery of certain services currently provided by Bell Canada pursuant to a customer specific arrangement (CSA) that expires on 15 December 2008. PWGSC requested, among other things, that the Commission make a determination relating to Bell Canada 's compliance with section 27 of the Telecommunications Act (the Act).
PWGSC, Bell Canada, Telus Communications Company and MTS Allstream Inc. supported establishing an expedited process for disposing of the application. The Commission initiated a process with expedited timeframes pursuant to which PWGSC and Bell Canada filed a joint submission on the services and issues in question and PWGSC subsequently filed a statement clarifying the relief that it is seeking from the Commission.
In its letter dated 3 December 2008, Commission staff established a process seeking comments on the appropriateness of extending, on an interim basis, the terms, conditions and prices provided under the existing contract until such time as the Commission makes a final determination on PWGSC's application. Comments were also to be provided as to what, if any, minimum revenue guarantee (MRG) would be appropriate in the circumstances for the interim period.
In response, PWGSC and Bell Canada each submitted comments on 5 December 2008 and reply comments on 8 December 2008.
Position of Parties
Bell Canada submitted that an extension of the terms, conditions and prices under the existing contract on an interim basis was inappropriate.
Bell Canada submitted that the tariffed contract or the alternative offer that was refused by PWGSC should govern the services PWGSC requires after 15 December 2008. Bell Canada submitted that it must be compensated for the rising cost of maintaining the infrastructure and replacing or upgrading equipment where necessary, in order to support the service level agreements. Bell Canada asserted that the monthly rate that PWGSC currently pays for the services does not take into account these additional costs.
Bell Canada provided alternative proposals for resolving the issue. Bell Canada submitted that the dispute between itself and PWGSC would be well-suited to the Commission's expedited procedure for resolving competitive issues, as described in Telecom Circular CRTC 2004-2 (Telecom Circular 2004-2). Bell Canada also proposed staff-assisted mediation and filing a narrower CSA consisting only of the regulated services required by PWGSC.
Bell Canada also questioned the Commission's jurisdiction to order that Bell Canada negotiate with PWGSC, provide forborne services or provide regulated services in the absence of an approved tariff.
PWGSC supported an interim extension of the current month-to-month rates under the existing contract, without an MRG, on the same terms and conditions pending resolution of the matters in dispute between Bell Canada and PWGSC. PWGSC submitted that Bell Canada did not provide any rationale for the imposition of an MRG in the interim period. PWGSC further submitted that, should the Commission ultimately determine that an MRG is just and reasonable, it could revisit the pricing applicable during the entire period during which the CSA is made interim.
With respect to Bell Canada 's alternate proposals regarding process, PWGSC was concerned that these proposals would delay resolution of the application and bypass the expedited procedures established by the Commission.
Commission's Analysis and Determinations
The Commission notes that Bell Canada has indicated that it has stopped issuing out orders to ensure continuity of service after 15 December 2008. The Commission consider that an interim determination would provide regulatory legitimacy to Bell Canada to the extent that Bell Canada continues to provide services to PWGSC after that date. An interim determination on the rates, terms and conditions for services provided after 15 December 2008 would allow the Commission to properly examine all evidence and argument submitted in the context of a full process before making a final decision. An interim determination would also allow the Commission to adjust rates, terms and conditions, including the imposition of an MRG, back to the date that its interim decision took effect, if appropriate, on the basis of a complete record.
The Commission notes that PWGSC is currently receiving services on a month-to-month basis without an MRG. An extension of the arrangement would be limited to the duration necessary for the Commission to make a determination on final rates, terms and conditions, which will be based on a full record that will be developed on an expedited basis.
With respect to Bell Canada's submission that there would be additional costs associated with continuing to provide the services beyond 15 December 2008 and Bell Canada's proposal to introduce a new CSA tariff for the regulated services required by PWGSC, the Commission considers that such issues should be dealt with in the context of that full record.
Accordingly, the Commission determines that an interim extension of the rates, terms and conditions of the current contract, without an MRG, for services provided by Bell Canada to PWGSC's client after 15 December 2008 to such time as the Commission makes a final determination is appropriate and orders that such an extension be provided.
The Commission notes Bell Canada 's proposal that this dispute be dealt with by expedited hearing in accordance with the procedures set out in Telecom Circular 2004-2. The Commission expects to outline any further procedural steps by 19 December 2008.
Yours sincerely,
Original signed by
Robert A. Morin
Secretary General
cc: C. Bailey, CRTC, (819) 997-4557, christine.bailey@crtc.gc.ca
A. McIntyre, CRTC, (819) 994-7572, anthony.mcintyre@crtc.gc.ca
Public Works Government Services Canada
Acquisitions Branch & Telecommunications Systems Procurement Directorate
Brenda Wyber
Manager, Telecommunication Services Division
brenda.wyber@tpsgc-pwgsc.gc.ca
Bell Canada - David Palmer Director-Regulatory Affairs
bell.regulatory@bell.ca
TELUS Communications Company Société TELUS Communications - Terry Connolly Director, Regulatory Affairs
regulatory.affairs@telus.com
MTS Allstream Inc. - Teresa Griffin-Muir Vice President, Regulatory Affairs
iworkstation@mtsallstream.com
Rogers Cable Communications Inc. Communications Rogers Câble inc. - Brenda Stevens Director Intercarrier Relations
brenda.stevens@rci.rogers.com
Coalition of Communications Consumers
Jennifer M. Long, Barrister and Solicitor
jennifer.mlong@gmail.com
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