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Ottawa, 10 February, 2010
Our Reference: 8640-T78-200913419
Mr. Roger Roy
Secretary, Corporate Affairs
IVIC Télécom s.e.n.c.
3, Centre Sportif Street
Warwick, Québec J0A 1M0
Mr. Michel Gilbert
General Director, Regulatory Affairs
Télébec, Société en commandite
7151 Jean-Talon East Street
Anjou, Québec H1M 3N8
Mr. Dennis Béland
Director, Regulatory Affairs
Quebecor Media Inc.
612 St-Jacques Street, 15th South Tower
Montréal, Québec H3C 4M8
RE: Télébec, Société en commandite - Part VII application for forbearance from the regulation of residential local exchange services in the exchanges of Chesterville, Norbertville, Ste-Victoire, Tingwick, and Villeroy, Quebec
The Commission is in receipt of submissions and/or data regarding the above-mentioned application from IVIC Télécom s.e.n.c. (IVIC), Télébec, Société en commandite, (Télébec) and Quebecor Media Inc., on behalf of its affiliate Vidéotron Ltd. (Videotron).
However, in order for the Commission to assess if the conditions of the Structured Rule of Reason are met in the above-mentioned exchanges, IVIC, Télébec and Vidéotron are requested to provide their response to the attached questions by 12 March 2010. Interested parties are to file reply comments by 29 March 2010.
Where a document is to be filed by a specific date, the document must be actually received, and not merely sent, by that date.
Original signed by
Competition Implementation and Technology
Questions for IVIC, Télébec and Vidéotron:
1. What are your average variable costs per customer in the exchanges of Chesterville, Norbertville, Tingwick, and Villeroy (the relevant exchanges)? Provide separately for each of the relevant exchanges a breakdown of the variable costs. (Variable costs are defined as costs that vary with the number of customers served and include, but are not limited to, costs such as maintenance, advertising and sales management, billing, equipment requirements, truck roll, customer terminal equipment and any other incremental customer specific service costs, etc.).
2. How much time, on average, is required to recover the variable costs identified in question 1 for each of the relevant exchanges?
3. What was your customer base, for each of the relevant exchanges, as of 31 December 2007, 2008, and 2009?
4. In each of the relevant exchanges what is your forecasted increase (decrease) in your customer base (in % and in number of customers) in 2010 and 2011?
5. In theory, a company that does not have the capability to offer telephone services in an entire exchange could be considered “capacity constrained”. Provide your views with supporting rationale.
Questions for IVIC and Vidéotron:
6. For each relevant exchange, are you in any way dependant on Télébec’s facilities or/and services in these exchanges? In the affirmative, what facilities or/and services are required from Télébec?
Questions for IVIC only:
7. Provide technical information describing how local telephone services are provided in the exchanges of Chesterville, Tingwick and Villeroy, including the interconnection with the public switched telephone network. Provide any supporting document such as diagrams.
8. In reply comments dated 2 December 2009, Télébec noted that IVIC failed to provide on the public record either the number of residential customers or the percentage of households that it believes it is capable of serving in the exchanges of Chesterville, Tingwick, and Villeroy.
Pursuant to the Commission’s practice established in Telecom Commission Letter, dated 7 June 2007, a competitor capable of serving at least 50 percent of the total number of residential access lines, but less than 75 percent is to file the actual numbers and percentages pertaining to its capability on the public record.
Accordingly, IVIC is to file the above-mentioned information on the public record.
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