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Ottawa, 29 July 2011

Ref No.: 8680-A5-201111210

Mr. Serge Désy
President and CEO
Association des Compagnies de Téléphone du Québec
2750 Chemin Vallée
Saint-Alexis-des-Monts, Quebec  J0K 1V0

Mr. Jonathan Holmes
Executive Director
Ontario Telecommunications Association
29 Peevers Cres.
Newmarket, Ontario  L3Y 7T5

Ms. Lisa Marogna
CityWest Telephone Corporation
248 3rd Avenue West
Prince Rupert, British Columbia  V8G 1L1

Re: Request by l’Association des Compagnies de Téléphone du Québec inc. (ACTQ), the Ontario Telecommunications Association (OTA), and CityWest Telephone Corporation (CityWest) to stay part of Telecom Regulatory Policy 2011-291

Dear Madam and Sirs,

The Commission received a joint submission by the ACTQ, the OTA, and CityWest (collectively, ACTQ/OTA/CityWest), dated 14 July 2011, on behalf of 30 small incumbent local exchange carriers (small ILECs),[1] requesting that the Commission stay, on an urgent and expedited basis, the implementation of certain determinations and directives contained in Telecom Regulatory Policy CRTC 2011-291 (TRP 2011-291).[2]

Specifically, ACTQ/OTA/CityWest requested that the Commission stay the implementation of the small ILECs’ imputed rate increases and of the associated subsidy reductions, as set out in paragraph 122 of TRP 2011-291.  ACTQ/OTA/CityWest argued that small ILECs would be subject to irreparable harm if the imputed rate increases and associated subsidy reductions were implemented on 1 August 2011 pursuant to the terms and conditions established in TRP 2011-291.

The Commission notes that it received a separate joint submission by ACTQ/OTA/CityWest, dated 6 July 2011, requesting that the Commission review and vary certain portions of TRP 2011-291, including those portions related to the aforementioned stay request.

The Commission also notes that, pursuant to Telecom Decision CRTC 2010-789,[3] the subsidy amounts provided to the small ILECs for 2011 were set on an interim basis.  These amounts may therefore be adjusted as required, depending on the Commission’s determinations with respect to the ACTQ/OTA/CityWest review and vary application.

Further, the Commission notes that if it were to make the small ILECs’ rates for residential primary exchange service (PES) interim, it would have similar flexibility with respect to these rates and could adjust them retroactively, as required, back to the effective date of the interim decision. In this regard, the Commission considers that making the small ILECs’ residential PES rates interim, effective 1 August 2011, would allow it to properly examine all evidence and arguments submitted in the context of the ACTQ/OTA/CityWest review and vary application before making a final determination.  

Accordingly, the Commission determines that, effective 1 August 2011, the small ILECs’ rates for residential PES are made interim, and will remain so until the Commission makes a determination with respect to the ACTQ/OTA/CityWest review and vary application.  If a small ILEC chooses not to increase residential PES rates at the present time, the Commission may consider that factor when setting rates, if required, in light of its determinations on the ACTQ/OTA/CityWest review and vary application.

In light of the above, the Commission will continue to implement the determinations found in paragraph 122 of TRP 2011-291.  The Commission is consequently returning the stay application with this letter, thereby closing the file.


Original signed by John Kehoe for

Robert A. Morin
Secretary General

Distribution list

Parties, Obligation to Serve and Other Matters, Telecom Notice of Consultation CRTC 2010-43, 28 January 2010 (as amended):;;;;;;;;;;;;;;;;; ;;; ;;;;;;;;;;;;;;;; ;; ;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;; ;;;;;;;;;;;;;;;;;;;; ;;;;;;;;;


ACTQ member companies
La Compagnie de Téléphone de Courcelles inc.
La Compagnie de Téléphone de Lambton inc.
La Compagnie de Téléphone de St- Victor
La Compagnie de Téléphone Upton inc.
Le Téléphone de St- Ephrem inc.
Sogetel inc.
Téléphone Guèvremont inc.
Téléphone Milot inc.

OTA member companies
Brooke Telecom Co-operative Limited
Bruce Telecom
Cochrane Telecom Services
Dryden Municipal Telephone System
Execulink Telecom Inc.
Gosfield North Communications Co-operative Limited
Hay Communications Co-operative Limited
Huron Telecommunications Co-operative Limited
The Lansdowne Rural Telephone Company Limited
Mornington Communications Co-operative Limited
Nexicom Telecommunications Inc.
Nexicom Telephones Inc.
North Frontenac Telephone Corporation Limited
North Renfrew Telephone Company Limited
Quadro Communications Co-operative Inc.
Roxborough Telephone Company Limited
Tuckersmith Communications Co-operative Limited
Westport Telephone Company Limited
Wightman Telecom Limited

CityWest Telephone Corporation

[1] See the appendix to this letter for a list of those companies.

[2] Obligation to serve and other matters, Telecom Regulatory Policy CRTC 2011-291, 3 May 2011, as amended by Telecom Regulatory Policy CRTC 2011-291-1, 12 May 2011

[3] Final 2010 revenue-percent charge and related matters, Telecom Decision CRTC 2010-789, 25 October 2010

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