ARCHIVED -  Letter

Ottawa, 24 July 2012

Our Reference: 8662-R28-201201699
8662-S9-201201342

BY E-MAIL

Distribution List

Dear Madam/Sir:

RE: Part 1 Applications to Review and Vary Telecom Regulatory Policy 2011-703 by Rogers Communications Inc. and Shaw Cablesystems Limited - Interrogatories

In the Part 1 Applications by Rogers Communications Inc. (Rogers) and Shaw Cablesystems Limited (Shaw), these companies requested that the determination in Telecom Regulatory Policy 2011-703 to provide a higher mark-up on wholesale
high-speed access services to incumbent local exchange carriers’ (ILECs) compared to cable carriers, be reviewed and varied.  In order to assist the Commission in making a determination on this issue, parties to the proceeding are requested to respond to the interrogatory questions addressed in the attachment to this letter.  The attachment specifies which parties should respond to which interrogatories.  

Responses to the interrogatories are to be filed with the Commission and served on all interested parties by 24 August 2012.  The level of disclosure of information in the responses should be consistent with disclosure rulings in the proceeding leading to Telecom Regulatory Policy 2011-703 and the disclosure rulings of Commission staff letters dated 13 July 2012.

Parties may submit comments on these responses by 31 August 2012.  Reply comments may be filed by 7 September 2012.

Where a document is to be filed or served by a specific date, the document must be actually received, not merely sent, by that date.  Copies of the documents should also be sent to yvan.davidson@crtc.gc.ca.

Electronic submissions should be in HTML format.  As an alternative, those making submissions may use Microsoft Word for text and Microsoft Excel for spreadsheets.

In addition, the line ***End of document*** should be entered following the last paragraph.  This will help the Commission verify that the document has not been damaged during electronic transmission.

Yours sincerely,

‘Original signed by Y. Davidson’

Yvan Davidson
Senior Manager, Competitor Service and Costing
Telecommunications Directorate

c.c.: Interested Parties to Telecom Notice of Consultation 2011-77

Attach.

Distribution List

Mr. Yves Mayrand
Vice President, Corporate Affairs
Cogeco Cable Inc.
5 Place Ville Marie, bureau 1700
Montreal, Quebec
H3B 0B3
yves.mayrand@cogeco.com

Mr. Kenneth G. Engelhart
Senior Vice President - Regulatory
Rogers Communications Partnership
333 Bloor Street East
Toronto, Ontario
M4W 1G9
ken.engelhart@rci.rogers.com

Mr. Jean Brazeau
Senior Vice President, Regulatory Affairs
Shaw Communications Inc.
40 Elgin Street, Suite 1400
Ottawa, Ontario
K1P 5K6
jean.brazeau@sjrb.ca

Mr. Dennis Béland
Sr. Director, Regulatory Affairs, Telecommunications
Quebecor Media Inc.
612 St-Jacques Street, 15th floor, South Tower
Montreal, Quebec
H3C 4M8
dennis.beland@quebecor.com

Mr. Philippe Gauvin
Counsel - Regulatory Law & Policy
Bell Canada
160 Elgin Street, Floor 19
Ottawa, Ontario
K2P 2C4
bell.regulatory@bell.ca
regulatory@bellaliant.ca

Ms. Teresa Griffin-Muir
Vice President, Regulatory Affairs
MTS Allstream
Suite 1400
45 O’Connor Street
Ottawa, Ontario
K1P 1A4
iworkstation@mtsallstream.ca

Mr. Ted Woodhead
Vice President, Telecom Policy and Regulatory Affairs
TELUS Communications Company
Floor 8, 215 Slater Street
Ottawa, Ontario
K1P 0A6
regulatory.affairs@telus.com

Mr. Robert Hersche
Director - Regulatory Affairs
Saskatchewan Telecommunications
2121 Saskatchewan Drive,
Regina, Saskatchewan
S4P 3Y2
Document.control@sasktel.com

Mr. William Sandiford
Chair of the Board and President
Canadian Network Operators Consortium Inc.
107-85 Curlew Drive
Toronto, Ontario

M3A 2P8
regulatory@cnoc.ca

Interested Parties to Telecom Notice of Consultation 2011-77

pkgdonovan2@gmail.com; regulatory@vianet.ca; lefebvre@rogers.com; constantly@rogers.com; lainwired@gmail.com; jim-johnston@cogeco.ca; tracy.cant@ontera.ca; linda_maljan@gov.nt.ca; kevanst.john@gmail.com; Regulatory@sjrb.ca; tom.copeland@caip.ca; lisagoetz@globalive.com; vince.valentini@tdsecurities.com; crtcubb@douville.org; douglas216@shaw.ca; cataylor@cyberus.ca; jkolyn@ikano.com; angusoliver320@gmail.com; bcampbell@skywaywest.com; martina.emard@lethbridgecollege.ca; babramson@mccarthy.ca; regulatory@telnetcommunications.com; bell.regulatory@bell.ca; regulatory@bell.aliant.ca; regulatory@execulink.com; jcarter@surenet.net; mike.manvell@switchworks.com; ghariton@sympatico.ca; ctacit@tacitlaw.com; crtcmail@gmail.com; scott@beamdog.com; mmallani@yahoo.ca; d.olafson@shaw.ca; wally@ciaccess.com; jared.mcateer@istockphoto.com; thepga@gmail.com; dirkalgera@gmail.com; tfarrelly@bryston.ca; al@purepages.ca; rubenstein.mark@gmail.com; jamiea@storm.ca; glenrfarrell@gmail.com; dr.wilson@wilson-research.ca; jacqueslee917@gmail.com; catherine.middleton@ryerson.ca; apilon@acninc.com; deschec@ircm.qc.ca; jebouchard@phdvideo.com; ian_fraser@nomorecrtcspam.ca; spaesani@gmail.com; dmckeown@viewcom.ca; peterdasilva@yahoo.ca; abriggs@cogeco.ca; rwadsworth@sandvine.com; document.control@sasktel.com; sidneirohr@hotmail.com; ivan@vibrantprints.ca; jae@c-art.com; rem00126@hotmail.com; cmich@rogers.com; tzaritsa1000@hotmail.com; chad.cunningham@cwct.ca; renaonlinenow@gmail.com; tisrael@cippic.ca; jfleger@jflegerlaw.com; andyb@teksavvy.com; samsonmi@tlb.sympatico.ca; andre.labrie@mcccf.gouv.qc.ca; regulatory@primustel.ca; amanevich@heenan.ca; brian@colenet.ca; Regulatory.Matters@corp.eastlink.ca; adena.dinn@calliougroup.com; anlakenews@gmail.com; regulatory@bcba.ca; satkepa@rogers.com; lukejwohlgemut@hotmail.com; Smartyjones@sympatico.ca;

ricka@zing-net.ca; kirsten.embree@fmc-law.com; hemond@consommateur.qc.ca;

grayden@graydenlaing.com; john.temprile@vivosonic.com; broxx@shaw.ca;

syscool77@hotmail.com; duarte@aetoronto.ca; eric.leclerc@iaah.ca; jroots@cad.ca; jonathan.holmes@ota.on.ca; mike@mikeaudet.com; mena_samuel@hotmail.com; iworkstation@mtsallstream.com; dennis@iplink.net;

rob.olenick@tbaytel.com; shannonbgroves@yahoo.com; t_wardman@hotmail.com;

jfmezei@vaxination.ca; scott@zip.ca; ml.auer@sympatico.ca; cbachalo@juniper.net; mdrobac@netflix.com; andrewoca@gmail.com; hannon@rogers.com; hijbji@gmail.com; blackwell@giganomics.ca; erik.waddell@ic.gc.ca; david.watt@rci.rogers.com; regulatory.affairs@telus.com;

Andreea.Todoran@ic.gc.ca; cjprudham@barrettxplore.com; regulatory@teksavvy.com; crtc@mhgoldberg.com; piac@piac.ca; telecom.regulatory@cogeco.com; regaffairs@quebecor.com; regulatory@distributel.ca; marc@teksavvy.com; munly@worldbroadbandfoundation.org; henault_claude@hotmail.com; regulatory@cnoc.ca

Attachment

Rogers, Shaw Review and Vary Applications for TRP 2011-703 - Interrogatories to Interested Parties

I. Interrogatory Questions to ILECs (Bell Aliant, Bell Canada, MTS Allstream, TCC, SaskTel)

1. Provide for each of the years 2009, 2010, and 2011:

a. the total number of Internet service providers (ISPs) (at year-end) that subscribe to wholesale high-speed access services,

b. the total number of end-customers (at year-end) by speed tier associated with the company’s wholesale high-speed access services, and

c. the total revenues by speed tier from the company’s wholesale
high-speed access services.

2. For each month of 2012 for which data are available, provide the following information:

a. the total number of end-customers by speed tier associated with the company’s wholesale high-speed access services,

b. the total revenues by speed tier from the company’s wholesale high-speed access services, and

c. identify your company’s top 5 wholesale customers for high-speed access services and for each of these customers, provide the total number of end-customers and the associated total high-speed access revenue.

3. For each of the years 2012 and 2013 provide a forecast of:

a. the total number of ISPs (at year-end) that subscribe to wholesale high-speed access services,

b. the total number of end-customers (at year-end) by speed tier associated with the company’s wholesale high-speed access services based on current rates, and

c. the total revenues by speed tier associated with the company’s wholesale high-speed access services based on current rates.

II. Interrogatory questions to Cablecos (Cogeco, Rogers, Shaw, Vidéotron)

1. Comment, and provide supporting rationale, on changes to the risk factors associated with new infrastructure investment that may have occurred as a result of new wholesale service obligations imposed on cable companies by Telecom Regulatory Policy 2011-703.

2. Provide for each of the years 2009, 2010, and 2011:

a. the total number of ISPs (at year-end) that subscribe to wholesale high-speed access services,

b. the total number of end-customers (at year-end) by speed tier associated with the company’s wholesale high-speed access services, and

c. the total revenues by speed tier from the company’s wholesale
high-speed access services.

3. For each month of 2012 for which data are available, provide the following information:

a. the total number of end-customers by speed tier associated with the company’s wholesale high-speed access services,

b. the total revenues by speed tier associated with the company’s wholesale high-speed access services, and

c. identify your company’s top 5 wholesale customers for high-speed access services and for each of these customers, provide the total number of end-customers and the associated total high-speed access revenue.

4. For each of the years 2012 and 2013 provide a forecast of:

a. the total number of ISPs (at year-end) that subscribe to wholesale high-speed access services,

b. the total number of end-customers (at year-end) by speed tier associated with the company’s wholesale high-speed access services based on current rates,

c. the total revenues by speed tier associated with the company’s wholesale high-speed access services based on current rates,

d. the anticipated impact on the forecast of revenues and demand of a 6% increase in wholesale high speed access service rates, with supporting rationale.

5. In its review and vary application Rogers submitted that the 10% mark-up premium on TPIA services would result in a 6% increase in wholesale
high-speed access services revenues when the Bell Canada cost of equity of 11% was used to measure the cost of capital rather than Rogers’ cost of equity.  With respect to your company’s cost studies filed in the proceeding leading to TRP 2011-703, identify the percentage revenue change to total wholesale high-speed access service revenues that occurs when the ILEC’s 11% cost of equity is inserted in place of the company’s cost of equity.  The answer should provide the percentage revenue change to 1 decimal point.

6. Describe, with rationale, how the Commission might determine which cableco-provided wholesale high-speed access services would be eligible for an additional 10% mark-up, as requested by Shaw and other cablecos, similar to the ILEC-provided non-legacy wholesale high-speed access services that receive an additional 10% mark-up.

III. Interrogatory questions to CNOC members

1. Identify, with rationale, and rank the most important considerations (e.g. price, speed availability, technical considerations, other) that affect the decision by CNOC members to use either the cable companies’ wholesale TPIA service or the ILECs’ wholesale high-speed access service for the purpose of providing service to their end-customers.  The response should reflect the views of the majority of the members.

2. For each of the CNOC members, identifying each member that makes use of the cableco’s wholesale high-speed access services, for each of the years 2012 and 2013, provide a forecast of:

a. the total number of end-customers (at year-end) by speed tier associated with the company’s wholesale high-speed access services (based on current rates),

b. the total amounts paid to the incumbent by speed tier associated with the company’s wholesale high-speed access services (based on current rates),

c. the anticipated impact on the forecasts of amounts paid and the numbers of end customers of a 6% increase in cableco provided wholesale high-speed access service rates, with supporting rationale.

Date modified:

2012-07-24