Telecom Decision CRTC 2015-362

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Ottawa, 7 August 2015

File number: 8640-T66-201502138

TELUS Communications Company – Application for forbearance from the regulation of business local exchange services

The Commission approves TCC’s request for forbearance from the regulation of business local exchange services in 12 exchanges in Alberta and British Columbia.

Introduction

1. The Commission received an application from TELUS Communications Company (TCC), dated 27 February 2015, in which the company requested forbearance from the regulation of business local exchange services^{Footnote 1} in 12 exchanges in Alberta and British Columbia. A list of these exchanges is set out in Appendix 1 to this decision.
2. The Commission received submissions and/or data regarding TCC’s application from Bell Canada; Bragg Communications Incorporated, operating as Eastlink (Eastlink); Distributel Communications Limited; Iristel Inc. (Iristel); and Shaw Telecom G.P. (Shaw). The public record of this proceeding, which closed on 19 May 2015, 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

3. The Commission has assessed TCC’s application based on the local forbearance test set out in Telecom Decision 2006-15 by examining the four criteria set out below.

Product market

4. TCC is seeking forbearance from the regulation of 43 tariffed business local exchange services, as listed in Appendix 2 to this decision. In Telecom Decision 2012-23, the Commission found all of these services to be eligible for forbearance. The services listed in Appendix 2 to this decision are therefore eligible for forbearance.
5. The Commission received no interventions with respect to TCC’s proposed list of business local exchange services.

Competitor presence test

6. The information provided by parties demonstrates that there is, in addition to TCC, an independent, facilities-based, fixed-line telecommunications service provider^{Footnote 2} that offers local exchange services in each of the 12 exchanges in question and that is capable of serving at least 75% of the number of business local exchange service lines that TCC is capable of serving.
7. Accordingly, the 12 exchanges listed in Appendix 1 meet the competitor presence test.

Competitor quality of service (Q of S) results

8. TCC submitted competitor Q of S results for the period of July to December 2014.  These results demonstrate that during this six-month period, TCC
• met, on average, the Q of S standards for each indicator set out in Appendix B of Telecom Decision 2006-15, as defined in Telecom Decision 2005-20, with respect to the services provided to competitors in its territory; and
• did not consistently provide any of those competitors with services that were below those Q of S standards.
9. Accordingly, TCC meets the competitor Q of S criterion for this period.

Communications plan

10. In lieu of filing a communications plan, TCC submitted that its communications plan specific to the exchanges listed in Appendix 1 would conform to the Commission’s determinations set out in Telecom Decision 2008-107.
11. TCC submitted a communications plan in the proceeding leading to Telecom Decision 2008-107 that complies with the Commission’s requirements set out in Telecom Decision 2006-15.
12. Accordingly, the Commission approves, for the purpose of the current application, the use of the communications plan that TCC submitted in the proceeding leading to Telecom Decision 2008-107. The Commission directs TCC to provide the resulting communications materials to its customers, in both official languages where appropriate.

Conclusion

13. TCC’s application regarding the 12 exchanges in Alberta and British Columbia that are listed in Appendix 1 meets all the forbearance criteria set out in Telecom Decision 2006-15.
14. 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 TCC of the business 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 business customers only, in these exchanges, would be consistent with the Canadian telecommunications policy objectives set out in section 7 of the Act.
15. Pursuant to subsection 34(2) of the Act, the Commission finds as a question of fact that these business local exchange services are subject to a level of competition in these exchanges sufficient to protect the interests of users of these services.
16. 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 TCC of these business local exchange services in these exchanges would be unlikely to impair unduly the continuance of a competitive market for these services.
17. In light of the above, the Commission approves TCC’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 business customers only, in the 
    12 exchanges listed in Appendix 1, 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 TCC to file revised tariff pages^{Footnote 3} with the Commission within 30 days of the date of this decision.

Secretary General

Related documents

• TELUS Communications Company – Application for forbearance from the regulation of business local exchange services, Telecom Decision CRTC 2012-23, 18 January 2012
• TELUS Communications Company – Application for forbearance from the regulation of business local exchange services, Telecom Decision CRTC 2008-107, 19 November 2008
• Forbearance from the regulation of retail local exchange services, Telecom Decision CRTC 2006-15, 6 April 2006, as amended by Order in Council P.C. 2007-532, 4 April 2007
• Forbearance from regulation of local exchange services, Telecom Public Notice CRTC 2005-2, 28 April 2005
• Finalization of quality of service rate rebate plan for competitors, Telecom Decision CRTC 2005-20, 31 March 2005

Appendix 1 to Telecom Decision CRTC 2015-362

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

Alberta

Crowsnest Pass
Sibbald
Three Hills

British Columbia

Balfour
Castlegar
Enderby
Fulford Harbour
Genelle
Nelson North
Rossland
Sorrento
Thrums

Appendix 2 to Telecom Decision CRTC 2015-362

Local exchange services eligible for forbearance from regulation in this decision (for business customers only)

Date modified:

2015-08-07