ARCHIVED - Telecom Order CRTC 2012-58

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Ottawa, 27 January 2012

Videotron Ltd. – Introduction of interconnection speed change charge for third-party Internet access service network capacity increments

File number: Tariff Notice 41

1.        The Commission received an application by Quebecor Media Inc., on behalf of its affiliate Videotron Ltd. (Videotron), dated 19 December 2011, in which the company proposed revisions to its third-party Internet Access (TPIA) tariff to introduce an interconnection speed change charge associated with orders to change the network capacity for a TPIA customer. The proposed charge would be applied for each request by an Internet service provider to increase or decrease its interconnection speed, provided that no physical changes to interconnection circuits are required. Videotron also proposed that requests for speed increases or decreases must be received at least 21 calendar days before the start of the month for which they are to take effect.

2.        Videotron further proposed to increase its diagnostic labour rate. Videotron submitted that the current rate was established in Telecom Decision 2004-69 and that the proposed rate is based on the actual costs for Internet Protocol engineering.

3.        Videotron provided a cost study in support of its proposed service charge.

4.        In Telecom Regulatory Policy 2011-703, the Commission approved a capacity-based billing model with separate access and usage rates for Videotron, effective 1 February 2012. The Commission also determined that a service charge rate associated with changes to the network capacity, in 100 megabits per second increments, would be applied on a per-order basis, independent of the number of increments, and directed Videotron to file for approval, by 19 December 2011, tariffs and supporting cost studies for the proposed service charge.

5.        The Commission notes that the capacity service order charge is required to implement the capacity-based billing model on 1 February 2012. The Commission further notes that the close of record for Videotron’s application is beyond this date.

6.        In light of the above, the Commission approves on an interim basis Videotron’s proposed interconnection speed change charge associated with changes to network capacity, effective 1 February 2012.

7.        The Commission will, subsequent to the close of record, dispose of the proposed diagnostic labour rate and issue its final decision on the proposed capacity service order charge rate and terms and conditions, taking into account any comments it may receive.

Secretary General

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