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Ottawa, 9 November 2011
Our reference: 8740-T66-201112747
BY E-MAIL
Mr. Hal Reirson
Senior Regulatory Advisor
Telecom Policy & Regulatory Affairs
TELUS Communications Company
21-10020 – 100 Street NW
Edmonton, Alberta T5J 0N5
regulatory.affairs@telus.com
Dear Sir:
Re: Request for disclosure of costing information designated as confidential – TELUS Communications Company Tariff Notice 417
On 13 October 2011, MTS Allstream Inc. (MTS Allstream) requested disclosure of information designated as confidential by TELUS Communications Company (TCC) as part of its Tariff Notice 417 (TN 417) application. Specifically, MTS Allstream requested the Commission order TCC to disclose, on the public record, all information that is presently abridged in the regulatory economic study associated with TN 417.
MTS Allstream submitted that it is essential for interested persons to have access to this information to enable meaningful examination and comment. MTS Allstream also submitted that the benefit to the public interest of making TCC’s cost, demand, and revenue information public outweighs the competitive harm to TCC.
On 21 October 2011, TCC replied that treating the requested information as confidential is consistent with the historical treatment of such information. TCC stated that, with rare exceptions, when costs studies for wholesale services are filed with the Commission, the standard industry practice for all incumbent local exchange carriers, including MTS Allstream, is to file all cost, demand and revenue information in confidence. TCC also submitted that the payphone service in question is provided on a competitive basis in Canada and that, in addition, consumers are increasingly using wireless services in place of payphones services, thereby rendering this information commercially sensitive to TCC Commission staff notes that requests for disclosure of information designated as confidential are addressed in light of sections 38 and 39 of the Telecommunications Act (the Act) and section 30 and following of the CRTC Rules of Practice and Procedure. In evaluating a request, an assessment is made as to whether the information falls into a category of information that can be designated confidential pursuant to section 39 of the Act. The Commission then assesses whether there is any specific direct harm likely to result from the disclosure of the information in question and whether any such harm outweighs the public interest in disclosure. In making this evaluation, a number of factors are taken into consideration, including the degree of competition and the importance of the information to the ability of the Commission to obtain a full and complete record. The factors considered by the Commission are discussed in more detail in Broadcasting and Telecom Information Bulletin CRTC 2010-961 Procedures for filing confidential information and requesting its disclosure in Commission proceedings (Bulletin 2010-961).
In the Appendix to Bulletin 2010-961, the Commission has provided a table which lists information that the Commission will generally require to be disclosed or maintain as confidential. In that Appendix the Commission has listed cost study inputs that will generally be placed on the public record, as indentified in paragraph 3-83 of the incumbent telephone companies’ regulatory economic study manuals. Commission staff notes that paragraph 3‑83 of TCC’s regulatory economic study manual states that with respect to studies filed in support of Category 1 competitor services applications (i.e. whose rates are determined using costs plus a 15% mark-up), disclosure of competitor demand by year and all entries of the Detailed Summary of Causal Costs Table is generally required.
Rates for the service associated with TN 417, compensation per call, are based on the costs plus 15% mark-up and therefore fall under the disclosure practices described in paragraph 3-83 of TCC’s regulatory economic study manual. The record does not provide sufficient rationale as to why the Commission should not follow this general practice. Accordingly, Commission staff directs TCC to place on the public record the following information: competitor demand by year and all entries of the Detailed Summary of Causal Costs Table. This would also include disclosure of the same information requested from TCC in interrogatories forwarded to TCC by the Commission, dated 28 October 2011, which are due to be filed on 16 November 2011.
Commission staff does not consider that MTS Allstream has demonstrated that the other information designated as confidential in TCC’s regulatory economic study should be disclosed.
In light of the above, the request by MTS Allstream is approved with respect to the disclosure of the following information: competitor demand by year and all entries of the Detailed Summary of Causal Costs Table.
Yours truly,
Original signed by
Yvan Davidson
Director, Competitor Services and Costing
Telecommunications Directorate
c.c.: Teresa Griffin-Muir, MTS Allstream Inc., iworkstation@mtsallstream.com;
Donald Heale, donald.heale@crtc.gc.ca
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