ARCHIVED - Telecom Decision CRTC 2014-348

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Ottawa, 2 July 2014

File number: 8640-T78-201401926

Télébec, Limited Partnership– Application for forbearance from the regulation of business local exchange services

The Commission approves Télébec’s request for forbearance from the regulation of business local exchange services in 16 exchanges in Quebec. The Commission denies Télébec’s request for forbearance regarding the exchange of Chesterville, Quebec.

Introduction

  1. The Commission received an application from Télébec, Limited Partnership (Télébec), dated 7 March 2014, in which the company requested forbearance from the regulation of businesslocal exchange servicesFootnote 1 in 17 exchanges in Quebec. A list of these exchanges is set out in Appendix 1 to this decision.
  2. The Commission received answers regarding Télébec’s application from Cogeco Cable Inc. (Cogeco), Duclos & Michaud Télécom inc. (Duclos & Michaud), and Quebecor Media Inc., on behalf of its affiliate Videotron G.P. (Videotron). The public record of this proceeding, which closed on 22 April 2014, is available on the Commission’s website at www.crtc.gc.ca or by using the file number provided above.

Commission’s analysis and determinations

  1. The Commission has assessed Télébec’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

  1. The Commission notes that Télébec is seeking forbearance from the regulation of
    23 tariffed businesslocal exchange services. The Commission also notes that in Telecom Decision 2005-35, it found all of these services to be eligible for forbearance. The Commission therefore determines that the services listed in Appendix 2 to this decision are eligible for forbearance.
  2. The Commission received no interventions with respect to Télébec’s proposed list of businesslocal exchange services.

b) Competitor presence test

  1. Télébec indicated that Câble-Axion Digitel inc. (Câble-Axion), the competitor in the exchanges of Frontenac and Woburn (Quebec), was served with its application. The Commission notes that Câble-Axion provided no information or evidence to either confirm or contest Télébec’s evidence. Télébec noted that by letter dated 7 June 2007,Footnote 2 Commission staff noted that where there is no information or evidence provided to either confirm or contest the applicant incumbent local exchange carriers’ (ILECs) evidence submitted in their respective local forbearance applications, the Commission would be required to rely on the information filed on the record of the proceeding by the applicant ILECs.
  2. As such, the Commission finds that Télébec’s assumption is reasonable and deems that Câble-Axion is capable of serving at least 75 percent of the business local exchange service lines in the exchanges of Frontenac and Woburn, Quebec.
  3. The Commission notes that information provided by parties demonstrates that there is, in addition to Télébec, at least one independent, facilities-based, fixed-line telecommunications service providerFootnote 3 in 16 of the 17 exchanges in question. Each of these providers is capable of serving at least 75 percent of the number of businesslocal exchange service lines that Télébec is capable of serving.
  4. Accordingly, the Commission determines that the 16 exchanges listed in Appendix 3 meet the competitor presence test.
  5. Regarding the other exchange, Chesterville, Quebec, the Commission determines that it does not meet the competitor presence test because the other facilities-based, fixed-line telecommunications service provider, Videotron, is not capable of serving at least 75 percent of the business local exchange service lines that Télébec is capable of serving.
  6. The Commission notes Duclos & Michaud’s submission that its network covers more than 75 percent of all of Télébec’s business and residential network access services in Îles-de-la-Madeleine, and that Télébec should request forbearance for these services.
  7. The Commission notes that in Telecom Regulatory Policy 2013-160, it specified that any party can file an application for forbearance for any small (or large) ILEC exchange, and that the Commission would consider information from all parties when it examines a forbearance application.

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

  1. The Commission notes that Télébec submitted competitor Q of S results for the period of August 2013 to January 2014. The Commission has reviewed these results and finds that Télébec has demonstrated that during this six-month period it
  1. Accordingly, the Commission determines that Télébec meets the competitor Q of S criterion for this period.

d) Communications plan

  1. The Commission has reviewed Télébec’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 modify its plan to ensure that the plan focuses on business services and not on residential services.
  2. The Commission approves the proposed communications plan subject to the above-mentioned modifications and directs Télébec to provide the resulting communications materials to its customers, in both official languages where appropriate.

Conclusion

  1. The Commission determines that Télébec’s application regarding the 16 exchanges in Quebec that are listed in Appendix 3 meets all the local forbearance criteria set out in Telecom Decision 2006-15.
  2. 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 Télébec of the businesslocal 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 businesscustomers only, in these exchanges, would be consistent with the Canadian telecommunications policy objectives set out in section 7 of the Act.
  3. Pursuant to subsection 34(2) of the Act, the Commission finds as a question of fact that these businesslocal exchange services are subject to a level of competition in these exchanges sufficient to protect the interests of users of these services.
  4. 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 Télébec of these businesslocal exchange services in these exchanges would be unlikely to impair unduly the continuance of a competitive market for these services.
  5. In light of the above, the Commission approves Télébec’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 businesscustomers only, in the
    16 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 Télébec to file revised tariff pagesFootnote 4 with the Commission within 30 days of the date of this decision.

Secretary General

Related documents

Appendix 1 to Telecom Decision CRTC 2014-348

Exchanges for which Télébec requested forbearance from the regulation of its business local exchange services

Quebec 

Bécancour

Cap-aux-Meules

Chesterville

Contrecœur

Daveluyville

Disraeli

Frontenac

Gentilly

Havre-Aubert

Havre-aux-Maisons

Mont-Laurier

St-Cyrille

St-Honoré

St-Léonard-d’Aston

Ste-Angèle

Ste-Sabine

Woburn

Appendix 2 to Telecom Decision CRTC 2014-348

Local  exchange services eligible for forbearance from regulation in this decision  (for business customers only)
Tariff Item List of services
25140 1.7 Telephone Set Loss Charge
25140 2.1.7.1 Monthly Rates for Access Lines, Regional Surcharges, and Other Fees
25140 2.1.7.4 Specialized Business Services
25140 2.1.8 Basic Services Provided Outside the Company’s Serving Area
25140 2.1.11 Telephone Service for Senior Citizens’ Club
25140 2.5 Telephones
25140 2.6 Access to Switched Automated Private Central Network Equipped with Direct Access
25140 2.8 Télébec Centrex Service
25140 2.10 Emergency Service
25140 2.15 Service to Immobilized Ships, Trailers and Trains
25140 2.23.2 Telephone Number Reservation/Activation – Rates and Fees
25140 2.27.6 Monthly Rates for Extra Listings
25140 2.27.7 Omission of Directory Listings (Business)
25140 3.1 Intra-Exchange Distance Charges
25140 3.3.17 Toll Restriction Service
25140 3.3.18 Call Management Services
25140 3.3.19 Call Display Blocking – Per Call
25140 5.2.6.5 Call Blocking Service
25140 8.4 Internet Call Display
25140 8.7.3 Integrated Services Digital Network (ISDN) 2B+D Télébec – Rates and Fees
25140 8.9 Integrated Services Digital Network (ISDN) 23B+D Télébec – Premium Option
25140 8.11 Boreal Service
25140 8.13 Digital Exchange Service

Appendix 3 to Telecom Decision CRTC 2014-348

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

Quebec 

Bécancour

Cap-aux-Meules

Contrecœur

Daveluyville

Disraeli

Frontenac

Gentilly

Havre-Aubert

Havre-aux-Maisons

Mont-Laurier

St-Cyrille

St-Honoré

St-Léonard-d’Aston

Ste-Angèle

Ste-Sabine

Woburn

Footnotes

Footnote 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.

Return to footnote 1 referrer

Footnote 2

In this letter, Commission staff set out the process for applications for local forbearance.

Return to footnote 2 referrer

Footnote 3

These competitors are Câble-Axion, Cogeco, Duclos & Michaud, or Videotron.

Return to footnote 3 referrer

Footnote 4

Revised tariff pages can be submitted to the Commission without a description page or a request for approval; a tariff application is not required.

Return to footnote 4 referrer

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