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Ottawa, 19 January 2011

NorthernTel, Limited Partnership – Application for forbearance from the regulation of business local exchange services

File number: 8640-N51-2010116668

In this decision, the Commission approves NorthernTel’s request for forbearance from the regulation of business local exchange services in the exchange of Timmins, Ontario.

Introduction

1.         The Commission received an application by NorthernTel, Limited Partnership (NorthernTel), dated 16 November 2010, in which the company requested forbearance from the regulation of business local exchange services[1] in the exchange of Timmins, Ontario.

2.         The Commission received submissions and data regarding NorthernTel’s application from Bragg Communications Inc., operating as EastLink (EastLink). The public record of this proceeding, which closed on 8 December 2010, is available on the Commission’s website at www.crtc.gc.ca under “Public Proceedings” or by using the file number provided above.

Commission’s analysis and determinations

3.      The Commission has assessed NorthernTel’s application by examining the four criteria set out below. These criteria are based on the local forbearance test originally set out in Telecom Decision 2006-15, as modified by Telecom Regulatory Policy 2009-379. The Commission notes that NorthernTel is a member of the Commissioner for Complaints for Telecommunications Services Inc. (CCTS). Pursuant to Telecom Regulatory Policy 2009-379, all small incumbent local exchange carriers that are required to become members of the CCTS must do so prior to the Commission granting local forbearance.

a) Product market

4.         The Commission received no comments with respect to NorthernTel’s proposed list of business local exchange services.

5.         The Commission notes that NorthernTel is seeking forbearance from the regulation of 18 tariffed business local exchange services. The Commission also notes that in Telecom Decision 2010-273, it found all of these services to be eligible for forbearance. Since that decision was issued, however, the Commission has forborne conditionally from regulating one of these services, Integrated Voice Messaging Service (IVMS), in Telecom Regulatory Policy 2010-777. Forbearance from the regulation of this service will take effect on the date that NorthernTel issues revised tariff pages for the service, pursuant to Telecom Regulatory Policy 2010-777. A list of the 17 remaining approved services is set out in the Appendix to this decision.

b) Competitor presence test

6.         The Commission notes that for the exchange of Timmins, information provided by parties confirms that there is, in addition to NorthernTel, one independent facilities-based fixed-line telecommunications service provider[2] that offers local exchange services in the market and is capable of serving at least 75 percent of the number of business local exchange service lines that NorthernTel is capable of serving.

7.         Accordingly, the Commission determines that the exchange of Timmins meets the competitor presence test.

c) Competitor quality of service

8.         The Commission notes NorthernTel’s attestation that it received no complaints from competitors in the six months prior to the date of the application. The Commission also notes that it received no comments with respect to NorthernTel’s competitor quality of service.

9.         Accordingly, the Commission determines that the quality of service provided by NorthernTel to its competitors is of a sufficient level to grant forbearance from the regulation of business local exchange services.

d) Communications plan

10.     The Commission has reviewed NorthernTel’s proposed communications plan and is satisfied that it meets the information requirements set out in Telecom Decision 2006-15. The Commission approves the proposed communications plan and directs NorthernTel to provide the resulting communications materials to its customers, in both official languages where appropriate.

Conclusion

11.     The Commission determines that NorthernTel’s application regarding the exchange of Timmins, Ontario meets all the local forbearance criteria set out in Telecom Decision 2006-15, as modified by Telecom Regulatory Policy 2009-379.

12.     Pursuant to subsection 34(1) of the Telecommunications Act (the Act), the Commission finds as a question of fact that to refrain from exercising its powers and performing its duties, to the extent specified in Telecom Decision 2006-15, in relation to the provision by NorthernTel of the business local exchange services listed in the Appendix and future services that fall within the definition of local exchange services set out in Telecom Public Notice 2005-2 as they pertain to business customers only, in this exchange, would be consistent with the Canadian telecommunications policy objectives set out in section 7 of the Act.

13.     Pursuant to subsection 34(2) of the Act, the Commission finds as a question of fact that these business local exchange services are subject to a level of competition in this exchange sufficient to protect the interests of users of these services.

14.     Pursuant to subsection 34(3) of the Act, the Commission finds as a question of fact that to refrain from exercising its powers and performing its duties, to the extent specified in Telecom Decision 2006-15, in relation to the provision by NorthernTel of these business local exchange services in this exchange would be unlikely to impair unduly the continuance of a competitive market for these services.

15.     In light of the above, the Commission approves NorthernTel’s application for forbearance from the regulation of the local exchange services listed in the Appendix and future services that fall within the definition of local exchange services set out in Telecom Public Notice 2005-2, as they pertain to business customers only, in the exchange of Timmins, Ontario, subject to the powers and duties that the Commission has retained as set out in Telecom Decision 2006-15. This determination takes effect as of the date of this decision. The Commission directs NorthernTel to file revised tariff pages with the Commission within 30 days of the date of this decision.

Secretary General

Related documents



Appendix

Local exchange services eligible for forbearance from regulation in this decision for business customers only

Tariff

Section

Item

List of services

25510

N100

1 to 5

Rate schedules for primary exchange (local) services

25510

N100

6

Telephone number services

25510

N140

4

Extra listings

25510

N190

2

Private branch exchange service

25510

N190

6

Direct inward dialling

25510

N210

all

Centrex

25510

N240

all

Centrex II service

25510

N280

1

Short-term Service

25510

N300

all

Service on Stationary Ships and Trains

25510

N320

all

Suspension of Service – Business 

25510

N490

2

Stop Hunt Feature

25510

N490

3

Random make busy feature

25510

N490

4

Toll Restriction Service

25510

N490

5

Touch Tone

25510

N490

8

Call Management Services

25510

N490

9

Call Blocking Service

25510

N900

15

Integrated services digital network 23B+D service

 



Footnotes:

[1]     In this decision, “business local exchange services” refers to local exchange services used by business customers to access the public switched telephone network and any associated service charges, features, and ancillary services.

[2]       This competitor is EastLink.

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