ARCHIVED - Telecom Decision CRTC 2011-629

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Ottawa, 28 September 2011

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

File number: 8640-T78-201111007

In this decision, the Commission approves Télébec’s request for forbearance from the regulation of business local exchange services in the exchange of St-Ours, Quebec.

Introduction

1.        The Commission received an application by Télébec, Limited Partnership (Télébec), dated 15 July 2011, in which the company requested forbearance from the regulation of business local exchange services^[1] in the exchanges of Norbertville and St-Ours, Quebec. Since the forbearance application concerning the exchange of Norbertville must be evaluated using the structured rule of reason,[2] which involves criteria that are different from those used to evaluate the application concerning the exchange of St-Ours, the Commission will address the former in a subsequent decision.

2.        The Commission received submissions and/or data regarding Télébec’s application from Quebecor Media Inc., on behalf of its affiliate Videotron Ltd. (Videotron). The public record of this proceeding, which closed on 15 August 2011, 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 Télébec’s application based on the local forbearance test set out in Telecom Decision 2006-15 by examining the four criteria set out below.

a) Product market

4.        The Commission notes that Télébec is seeking forbearance from the regulation of 30 tariffed business local exchange services. The Commission also notes that in Telecom Decision 2010-68, it found all of these services to be eligible for forbearance. A list of the 30 approved services is set out in the Appendix to this decision.

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

b) Competitor presence test

6.     The Commission notes that information provided by parties confirms that there is, in addition to Télébec, one independent, facilities-based, fixed-line telecommunications service provider[3] that offers local exchange services in the exchange of St-Ours and that is capable of serving at least 75 percent of the number of business local exchange service lines that Télébec is capable of serving.

7.        Accordingly, the Commission determines that the exchange of St-Ours meets the competitor presence test.

c) Competitor quality of service (Q of S) results

8.        The Commission notes that Télébec submitted competitor Q of S results for the period of January to June 2011. The Commission has reviewed these results and finds that Télébec has demonstrated that during this six-month period it

i)   met, on average, the Q of S standards for each indicator set out in Appendix B of Telecom Decision 2006-15, as defined in Telecom Decision 2005-20, with respect to the services provided to competitors in its territory; and

ii) did not consistently provide any of those competitors with services that were below those Q of S standards.

9.        Accordingly, the Commission determines that Télébec meets the competitor Q of S criterion for this period.

d) Communications plan

10.     The Commission has reviewed Télébec’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 Télébec to provide the resulting communications materials to its customers, in both official languages where appropriate.

Conclusion

11.     The Commission determines that Télébec’s application regarding the exchange of St-Ours, Quebec, meets all the local forbearance criteria set out in Telecom Decision 2006-15.

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 Télébec 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 Télébec 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 Télébec’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 St-Ours, Quebec, 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 Télébec to file revised tariff pages with the Commission within 30 days of the date of this decision.

Secretary General

Related documents

• Télébec, Limited Partnership - Application for forbearance from the regulation of business local exchange services, Telecom Decision CRTC 2010-68, 10 February 2010
• Forbearance from the regulation of retail local exchange services, Telecom Decision CRTC 2006-15, 6 April 2006, as amended by Order in Council P.C. 2007-532, 4 April 2007
• Forbearance from regulation of local exchange services, Telecom Public Notice CRTC 2005-2, 28 April 2005
• Finalization of quality of service rate rebate plan for competitors, Telecom Decision CRTC 2005-20, 31 March 2005

Appendix

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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]    See paragraphs 213 and 242 a) i. of Telecom Decision 2006-15.

[3]    This competitor is Videotron.