ARCHIVED - Letter

Ottawa, 19 December 2008

BY E-MAIL

Our File No.: 8661-P54-200815251

Mrs. Brenda Wyber
Manager
Public Works and Government Services Canada
Telecommunications Services Division
Place du Portage Phase III, 4C1
11 Laurier Street
Gatineau , Quebec K1A 0S5
brenda.wyber@tpsgc-pwgsc.gc.ca

Mr. Mirko Bibic
Chief, Regulatory Matters
Bell Canada
110 O'Connor Street , 14 th Floor
Ottawa , Ontario   K1P 1H1
bell.regulatory@bell.ca

Re: Public Works and Government Services Canada's Application for a Commission Decision pursuant to Section 27 of the Telecommunications Act regarding telecommunications services provided by Bell Canada - Further process and oral public hearing

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 expired 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).

In the course of the proceeding initiated by PWGSC's application, the Commission has received submissions from PWGSC, Bell Canada, Telus Communications Company (TCC), MTS Allstream Inc. (MTS Allstream) and the Coalition of Communications Consumers (the Coalition).

In its letter dated 3 December 2008, Commission staff established a process to permit the Commission to make a final determination with respect to the rates, terms and conditions that would comply with section 27 of the Act for services provided to PWGSC from Bell Canada after 15 December 2008 .   At the same time, Commission staff sought comments from PWGSC and Bell Canada on the appropriateness of extending, on an interim basis, the rates, terms and conditions provided under the current contract until such time as the Commission makes a final determination.

In its letter dated 11 December 2008, the Commission determined that an interim extension of the rates, terms and conditions of the current contract to such time as the Commission makes a final determination would be appropriate and ordered such an extension.   The Commission also noted Bell Canada 's proposal that the dispute be dealt with by expedited hearing in accordance with the procedures set in Telecom Circular CRTC 2004-2 and indicated that it would outline any further procedural steps by 19 December 2008.

Oral Public Hearing

After reviewing the submissions received and in light of the issues under consideration in this proceeding, Commission staff is of the view that an oral public hearing would assist the Commission to render a final determination.   Accordingly, the Commission will hold an oral public hearing on Monday, 12 January 2009 at 9:00am to adjudicate, in accordance with the expedited process established in Expedited procedure for resolving competitive issues , Telecom Circular CRTC 2004-2 (Telecom Circular 2004-2), the dispute between PWGSC and Bell Canada regarding the rates, terms and conditions that would comply with section 27 of the Act for services provided to PWGSC from Bell Canada after 15 December 2008.   This matter will be referred to a panel of three Commissioners.

Commission staff notes that PWGSC has sought a narrow determination concerning Bell Canada 's compliance under section 27 of the Act with respect to services that only PWGSC requires.   Further, Commission staff considers that the oral public hearing is necessary to the extent that it will allow the Commission to ask questions, and PWGSC and Bell Canada to make submissions, regarding the services required and the rates, terms and conditions that should apply. The information required at the oral public hearing can only be provided by PWGSC and Bell Canada .   Commission staff therefore makes PWGSC and Bell Canada the only parties to the oral public hearing. Commission staff notes that the submissions made by TCC, MTS Allstream, and the Coalition form part of the record of the proceeding and will be considered by the Commission when making its final determination.

Proposed CSA

Commission staff notes that on 11 December 2008, Bell Canada filed with the Commission and served on PWGSC a proposed CSA that Bell Canada submits consists solely of non-forborne services which PWGSC requires after 15 December 2008 (the proposed CSA), as it indicated it would in its comments dated 5 and 11 December 2008.   Bell Canada requested that the application for approval of the proposed CSA be treated on an ex parte basis as a Group B filing in accordance with Approval mechanisms for retail and CLEC tariffs, Telecom Decision CRTC 2008-74 (Telecom Decision 2008-74).

Due to the proposed CSA's relevance to the current proceeding, Commission staff considers that it should be incorporated into the record and will be considered as part of this proceeding. Further, in accordance with Telecom Decision 2008-74 and for the above reason, interim approval of the proposed CSA will not take effect and the Commission will dispose of the filing when it makes its final determination in the current proceeding.  

Commission staff notes that the proposed CSA was filed on an ex parte basis and will not be included on the public file.

Interrogatories

Attached to this letter are two sets of interrogatories; the first set to be responded to by PWGSC and Bell Canada , except as referenced therein, and the second set relating to Bell Canada 's proposed CSA, which is only to be responded to by Bell Canada .   Since the second set of interrogatories relates to the proposed CSA, which is an ex parte tariff application, the interrogatories and Bell Canada 's responses will be confidential and will not be placed on the public file.     

PWGSC and Bell Canada are each to file responses to the interrogatories, serving a copy on each other and TCC, MTS Allstream, Rogers Communications Inc. and the Coalition, by 5:00 pm EST on 5 January 2009.

Oral Public Hearing Agenda

The attached agenda outlines the expected timing for the proceeding.

Responsibilities of the Parties

The parties are required to bring with them all relevant documentation and knowledgeable personnel. An adverse inference may be drawn, if appropriate, from the failure of a party to bring all relevant documentation and knowledgeable personnel to the oral hearing. 

For ease of translation and transcription, parties are requested to bring two copies of any written opening and closing remarks.

The parties are also required to provide to Sheila Perron, at sheila.perron@crtc.gc.ca, and serve on each other, at least 10 days prior to the panel hearing, the name(s) of the person(s) who will be attending the hearing and their area of expertise. 

Filing of Documents

As an exception to the procedure set out in Telecom Circular 2004-2, PWGSC and Bell Canada are not required to file a document consisting of a concise argument stating the facts and Commission requirements and regulatory decisions relied on by the party.   The Commission will rely on the record of the proceeding initiated by PWGSC's application, as well as the record of the proceedings of previous tariff applications related to the services provided by Bell Canada to PWGSC.   In addition to the interrogatories attached to this letter, the Commission may request further information from one or both parties before or at the oral hearing.   The Commission is not inclined to accept the filing at the hearing of documentation that has not been requested.

Any documents filed with the Commission should be filed using the Procedure electronic form specifying the Commission file number indicated on this letter. Parties can access the electronic form on the Commission's website http://support.crtc.gc.ca/crtcsubmissionmu/forms/main.aspx?lang=e .

Confidentiality

Where a party designates information filed with the Commission as confidential, it must provide the reasons for its claim for confidentiality at the time it files the information with the Commission. If it chooses to do so, the other party (the requesting party) has one day to make representations to the Commission, clearly stating why it considers that the disclosure of the information filed in confidence is in the public interest, serving a copy on the party claiming confidentiality. The party claiming confidentiality will have one day to file a reply, serving a copy on the requesting party. 

During the course of the oral hearing, the parties may be required to make submissions that would disclose information of a confidential nature. In this event, the Commission will require that anyone who is not authorized to hear such information exit the room for the duration of the confidential submission.   The Commission will suspend the audio feed as required.   At the hearing, the Commission requests that parties notify the Commission before disclosing any confidential information in order for the Commission to make the necessary arrangements.  

Other

The hearing will be held in Salon Réal Therrien, 7 th floor of the Central Building, Terrasses de la Chaudière, 1 Promenade du Portage, Gatineau, Quebec.

Parties may contact Mr. Gerry Lylyk at (819) 953-0434, or at gerald.lylyk@crtc.gc.ca , if they require additional information regarding the organization and conduct of the hearing. 

Verbatim transcripts of the hearing, abridged if necessary, will be kept and posted on the Commission's web site. 

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. In addition to filing with the Commission, all copies of submissions are to be sent to the following email addresses: christine.bailey@crtc.gc.ca , anthony.mcintyre@crtc.gc.ca and marc.pilon@crtc.gc.ca .

Yours sincerely, 

"Original signed by John Traversy"

John Traversy
Executive Director
Telecommunications

cc:   C. Bailey, CRTC, (819) 997-4557, christine.bailey@crtc.gc.ca  
       A. McIntyre, CRTC, (819) 994-7572, anthony.mcintyre@crtc.gc.ca    
       M. Pilon, CRTC, (819) 997-4535, marc.pilon@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 - Mirko Bibic, Chief, Regulatory Matters
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

Agenda

Hearing to be held:

Thursday, 22 January 2009

Salon Réal Therrien
7 th floor of the Central Building
Terrasses de la Chaudière
1 Promenade du Portage
Gatineau , Quebec

Additional logistics:

An audio link will be available throughout the hearing via the Commission's web sit at www.crtc.gc.ca

A participant's meeting room, adjacent to Salon Réal Therrien, will be available in:

Room 708
7 th floor of the Central Building
Terrasses de la Chaudière
1 Promenade du Portage
Gatineau , Quebec

9:00 a.m. - 9:05 a.m. Opening Remarks by the Hearing Chairperson

9:05 a.m. - 11:00 a.m.

Applicant:        Public Works and Government Services Canada Bell Canada (PWGSC)
Respondent:    Bell Canada
Regarding:       PWGSC's Application for a Commission Decision pursuant to ection 27 of the Telecommunications Act regarding telecommunications services provided by Bell Canada
Our file:            8661-P54-200815251

Opening Remarks

PWGSC                           10 minutes
Bell Canada                     10 minutes

Questioning

By the Commission
By PWGSC                     20 minutes
By Bell Canada              20 minutes
By the Commission      

Closing Remarks

PWGSC                           10 minutes
Bell Canada                     10 minutes

Hearing adjourned                       

Attachment 1

Interrogatories to Bell Canada and PWGSC

All Interrogatories in this attachment are addressed to both Bell Canada and PWGSC, except Interrogatories 2(a) and 2(b), which are to be answered by Bell Canada alone.

1. a) Complete the following table. All numbers are to reflect monthly revenues that were (or would be) paid by PWGSC based on the terms and monthly rates in the current CSA. Do not apply a minimum revenue guarantee. Where exact figures are not available, provide your best estimate with rationale and assumptions.

*Where Billing Cycle 3 is the most recent. If this billing cycle is other than November 16 th to December 15 th , please so indicate the dates of the billing cycles.

**This estimate is to be based on provision of the services listed in Appendices 1A and 1B of PWGSC's 11 December 2008 comments (including the volumes listed therein), assuming they are provided on the same terms and conditions as the previous three billing cycles.

***New DVAC services are as indicated in the table at paragraph 1 Appendix 1A of PWGSC's 11 December 2008 comments, and further described at paragraph 2(c) of the same document.

b) If the monthly revenues paid by PWGSC were different between any of the past billing cycles or the next billing cycle, were these differences a result of the migration of services? If not, what explains these differences?

2.   In Bell Canada's comments dated 11 December 2008, the company indicated that it was filing a proposed CSA comprised of customized tariffed services, offered independently of any concurrent purchase of forborne services, and that PWGSC could subscribe to the proposed CSA, while separately subscribing (or not) to any desired forborne services, or any regulated services available from Bell Canada's General Tariff.

In its reply comments date 17 December 2008 PWGSC indicated that, as of that date, it had not yet received an offer from Bell for the forborne services.

a)   Bell Canada is to provide the details of its proposal for the forborne services, in particular:

i)    Confirm whether Bell Canada has made an offer to PWGSC for the forborne services;
ii)   if an offer has been made, provide a copy of the offer and any correspondence between PWGSC and Bell Canada subsequent to this offer;
iii)   if an offer has not been made, provide Bell Canada's best information as to the rates, terms and conditions that would be offered to PWGSC for these forborne services, including total monthly revenues; and
iV)   if the forborne services offered (or expected to be offered) by Bell Canada to PWGSC are different from those listed in Appendix 1A and 1B of PWGSC's 11 December 2008 comments, Bell Canada is to identify those differences, with rationale.

b) Bell Canada is to provide the total monthly revenues and any other charges that PWGSC would need to pay if it accepted Bell 's total offer of the proposed CSA, the regulated services under General Tariff, and the forborne services, assuming that the services offered are those listed in Appendix 1A and 1B of PWGSC's 11 December 2008 comments.   Provide a breakdown of these proposed total monthly revenues and any other charges into the following components: proposed CSA, General Tariff items, and each of the forborne services.

c) Indicate whether or not it is possible, or practical, for PWGSC to obtain these forborne services from other suppliers, given the specific needs of PWGSC, in the quantities required, for the length of time required, and in the timeframes in which they would be required. In this context, what market forces exist to discipline Bell Canada 's behaviour in relation to each separate forborne service? Provide full support for your response, including the name of any alternative source for the services.  

3. Included as Confidential Appendix 2 to the Joint Submission of Bell Canada and PWGSC dated 28 November 2008 , is a classification of the services as forborne and tarriffed assuming they were provided on a stand-alone basis.

a)  Update this list to reflect the services as they are listed in Appendix 1A and 1B of PWGSC's 11 December 2008 comments, as well as the volumes listed therein.

b)  Provide, for each forborne service in this list, the Commission decision that granted forbearance. If there are any services for which the Commission did not retain its powers under section 27(2) of the Telecommunications Act (the Act), indicate this fact in the updated list.

4.   In this proceeding, concerns have been raised that Bell Canada's pricing proposal and terms of service do not comply with Section 27 of the Act.   In relation to both the regulated and forborne services listed in Appendix 1A and 1B of PWGSC's 11 December 2008 comments:

(i)               Is Bell Canada discriminating against, or conferring a preference on, itself or any other person? If so, provide detailed rationale.
(ii)              Is this discrimination unjust? Is the preference undue or unreasonable? If so provide detailed rationale.

Date modified:

2008-12-19