ARCHIVED - Telecom Decision CRTC 2011-633

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Ottawa, 29 September 2011

Bell Aliant Regional Communications, Limited Partnership – Application for forbearance from the regulation of business local exchange services

File number: 8640-B54-201109984

In this decision, the Commission approves Bell Aliant’s request for forbearance from the regulation of business local exchange services in 85 exchanges in Newfoundland and Labrador, Nova Scotia, and Prince Edward Island. The Commission denies Bell Aliant’s request for forbearance in four exchanges in Nova Scotia and Prince Edward Island.

Introduction

1.        The Commission received an application by Bell Aliant Regional Communications, Limited Partnership (Bell Aliant), dated 28 June 2011, in which the company requested forbearance from the regulation of business local exchange services[1] in 89 exchanges in Newfoundland and Labrador, Nova Scotia, and Prince Edward Island. A list of these exchanges is set out in Appendix 1 to this decision.

2.        The Commission received submissions and data regarding Bell Aliant’s application from Bragg Communications Inc., operating as EastLink (EastLink). The public record of this proceeding, which closed on 9 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 Bell Aliant’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 received no comments with respect to Bell Aliant’s proposed list of business local exchange services.

5.        The Commission notes that Bell Aliant is seeking forbearance from the regulation of 37 tariffed business local exchange services. The Commission also notes that 24 of these services were either included in the list of services that the Commission found to be appropriate for forbearance in Telecom Decision 2005-35 or in subsequent decisions, such as Telecom Decision 2007-70. The Commission further notes that 12 of the other services are Centrex services that the Commission has found to be in the same relevant product market as business local exchange services and therefore appropriate for forbearance.[2] Finally, the Commission notes that Local Remote Call Forwarding Service, the remaining service, falls within the definition of local exchange services set out in Telecom Public Notice 2005-2.

6.        Accordingly, the Commission finds the list of services proposed by Bell Aliant to be appropriate. A list of the 37 approved services is set out in Appendix 2 to this decision.

b) Competitor presence test

7.        The Commission notes that information provided by parties confirms that there is, in addition to Bell Aliant, one independent, facilities-based, fixed-line telecommunications service provider[3] that offers local exchange services in 85 of the 89 exchanges in question and that is capable of serving at least 75 percent of the number of business local exchange service lines that Bell Aliant is capable of serving. A list of these 85 exchanges is set out in Appendix 3 to this decision.

8.        Accordingly, the Commission determines that the 85 exchanges listed in Appendix 3 meet the competitor presence test.

9.        The Commission also notes that there is no independent, facilities-based, fixed-line telecommunications service provider capable of serving at least 75 percent of the number of business local exchange service lines that Bell Aliant is capable of serving in the exchanges of Annapolis Royal, Mulgrave, and Musquodoboit Harbour, Nova Scotia, and Covehead, Prince Edward Island.

10.     Accordingly, the Commission determines that the exchanges of Annapolis Royal, Mulgrave, and Musquodoboit Harbour, Nova Scotia, and Covehead, Prince Edward Island, do not meet the competitor presence test.

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

11.     The Commission notes that Bell Aliant submitted competitor Q of S results for the period of December 2010 to May 2011. The Commission has reviewed these results and finds that Bell Aliant 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.

12.     Accordingly, the Commission determines that Bell Aliant meets the competitor Q of S criterion for this period.

d) Communications plan

13.     The Commission has reviewed Bell Aliant’s proposed communications plan and is satisfied that it meets the information requirements set out in Telecom Decision 2006-15. However, the Commission considers that the company should i) ensure that the plan applies to business services and not residential services by changing “residential” to “business” as required under the “Objectives” and “Key Messages” sections of the plan, and ii) change the city, province, and postal code information in the mailing address for the Canadian Radio-television and Telecommunications Commission, as set out in the plan, to “Ottawa, Ontario  K1A 0N2.”

14.     The Commission approves the proposed communications plan with the revision outlined above and directs Bell Aliant to provide the resulting communications materials to its customers, in both official languages where appropriate.

Conclusion

15.     The Commission determines that Bell Aliant’s application regarding the 85 exchanges in Newfoundland and Labrador, Nova Scotia, and Prince Edward Island listed in Appendix 3 meets all the local forbearance criteria set out in Telecom Decision 2006-15.

16.     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 Bell Aliant of the business local exchange services listed in Appendix 2 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 these exchanges, would be consistent with the Canadian telecommunications policy objectives set out in section 7 of the Act.

17.     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 these exchanges sufficient to protect the interests of users of these services.

18.     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 Bell Aliant of these business local exchange services in these exchanges would be unlikely to impair unduly the continuance of a competitive market for these services.

19.     In light of the above, the Commission approves Bell Aliant’s application for forbearance from the regulation of the local exchange services listed in Appendix 2 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 85 exchanges listed in Appendix 3, 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 Bell Aliant to file revised tariff pages with the Commission within 30 days of the date of this decision.

20.     For the exchanges of Annapolis Royal, Mulgrave, and Musquodoboit Harbour, Nova Scotia, and Covehead, Prince Edward Island, the Commission determines that Bell Aliant’s application does not meet all the local forbearance criteria set out in Telecom Decision 2006-15. The Commission therefore denies Bell Aliant’s application for forbearance from the regulation of business local exchange services in these exchanges.

Secretary General

Related documents





Appendix 1

 

Bell Aliant requested forbearance from the regulation of its business local exchange services in the following 89 exchanges.

 

Newfoundland and Labrador

 

Arnold’s Cove

Bay Roberts

Birchy Bay

Bonavista

Brigus

Burin

Carbonear

Chapel Arm

Clarenville

Garnish

Glovertown

Grand Bank

Harbour Main

Hare Bay

Hickman’s Harbour

Hillview

Horwood

King’s Point

Lewisporte

Lourdes

Marystown

Musgravetown

Port au Port

Springdale

St. George’s

Stephenville

Upper Island Cove

 

Nova Scotia

 

Amherst

Annapolis Royal

Antigonish

Arichat

Aylesford

Barrington

Bear River

Berwick

Bridgetown

Brookfield

Brooklyn

Chester

Chezzetcook

Digby

Elmsdale

Hantsport

Heatherton

Hopewell

Kentville

Kingston

Louisdale

Maccan

Meteghan

Middleton

Mill Village

Mount Uniacke

Mulgrave

Musquodoboit Harbour

New Glasgow

North Sydney

Parrsboro

Pictou

Port Hawkesbury

Port Mouton

River Hebert

Saltsprings

Saulnierville

Shelburne

Shubenacadie

Springhill

Stewiacke

Sydney

Thorburn

Truro

Waverley

Wedgeport

Weymouth

Windsor

Wolfville

Woods Harbour

Yarmouth

 

Prince Edward Island

 

Alberton

Borden

Charlottetown

Covehead

Crapaud

Hunter River

Kensington

Morell-St. Peters

Murray River

O’Leary

Souris

 




Appendix 2

 

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

 

Tariff

Item

List of services

 

21491

125.3

Extra Listings

21491

125.4

Non-Listed, Non-Published Service

21491

125.5

Contract Period for Chargeable Extra Listings

21491

125.6

Directories and Listings – Rates and Charges

21491

205.2

Business Single-Line Access Service

21491

205.4

Business Multi-Line Access Service

21491

205.6

Hotel Service

21491

205.7

Charitable Access Service

21491

215.2

National Centrex Service

21491

215.5

Centrex Call Centre Service

21491

215.6

Regional Large Business Centrex Service

21491

304

Enhanced Local Calling (Calling Features)

21491

308

Internet Call Manager

21491

312

900 Call Denial/Blocking Service

21491

316

Universal Messaging

21491

320

Electronic Transfer Capability for Centrex

21491

326

Music on Hold

21491

328

Direct-Inward-Dialing for Access Service

21491

338

Answer Supervision

21491

358

Data Line Support Service

21491

360

Duplicate Service

21491

362

Client Calling Code Service

21491

364

Centrex IP Service

21491

365

Local Remote Call Forwarding Service

21491

502

Digital Exchange Access

21491

504

Megalink Service

21491

506

Microlink Service

10001

530

Other Service Charges (Centrex)

10001

631

Business Message Rate Service

10001

750-790

Centrex Business Service

10001

955-980

Small Business Network Service

10001

2100-2110

Conference Service - Local

11001

370

Other Service Charges (Centrex)

11001

694-699

Centrex Business Service

11001

910-915

Local Conference Service

13001

190

Provincial Centrex Service

13001

193-194

National Centrex Service

 





Appendix 3

 

Exchanges that meet all the local forbearance criteria set out in Telecom Decision 2006-15:

 

Newfoundland and Labrador

 

Arnold’s Cove

Bay Roberts

Birchy Bay

Bonavista

Brigus

Burin

Carbonear

Chapel Arm

Clarenville

Garnish

Glovertown

Grand Bank

Harbour Main

Hare Bay

Hickman’s Harbour

Hillview

Horwood

King’s Point

Lewisporte

Lourdes

Marystown

Musgravetown

Port au Port

Springdale

St. George’s

Stephenville

Upper Island Cove

 

Nova Scotia

 

Amherst

Antigonish

Arichat

Aylesford

Barrington

Bear River

Berwick

Bridgetown

Brookfield

Brooklyn

Chester

Chezzetcook

Digby

Elmsdale

Hantsport

Heatherton

Hopewell

Kentville

Kingston

Louisdale

Maccan

Meteghan

Middleton

Mill Village

Mount Uniacke

New Glasgow

North Sydney

Parrsboro

Pictou

Port Hawkesbury

Port Mouton

River Hebert

Saltsprings

Saulnierville

Shelburne

Shubenacadie

Springhill

Stewiacke

Sydney

Thorburn

Truro

Waverley

Wedgeport

Weymouth

Windsor

Wolfville

Woods Harbour

Yarmouth

 

Prince Edward Island

 

Alberton

Borden

Charlottetown

Crapaud

Hunter River

Kensington

Morell-St. Peters

Murray River

O’Leary

Souris

 



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 Telecom Decision 2008-10, as confirmed in Telecom Decision 2008-57.

[3]     This competitor is EastLink.

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