Telecom Decision CRTC 2015-363

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Ottawa, 7 August 2015

File number: 8640-T78-201500934

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

The Commission denies Télébec’s request for forbearance from the regulation of business local exchange services in the exchanges of Chibougamau, Rouyn-Noranda, and Val-d’Or (Quebec).

Introduction

1. The Commission received an application from Télébec, Limited Partnership (Télébec), dated 27 January 2015, in which the company requested forbearance from the regulation of business local exchange services^{Footnote 1} in the exchanges of Chibougamau, Rouyn-Noranda, and Val-d’Or (Quebec) [referred to hereafter as the three exchanges].

2. The Commission received submissions regarding Télébec’s application from Iristel Inc. (Iristel); Quebecor Media Inc., on behalf of its affiliate Videotron G.P. (Videotron); and TELUS Communications Company (TCC). The public record of this proceeding, which closed on 1 June 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 Télébec’s application based on the local forbearance test set out in Telecom Decision 2006-15, which consists of four criteria - the product market, the competitor presence test,^{Footnote 2} as well as the company’s competitor quality of service results and its communications plan. In this case, the Commission will first consider the competitor presence test.

4. Télébec submitted that the exchanges of Chibougamau and Rouyn-Noranda meet the competitor presence test because a combination of Iristel, TCC, and Xittel Telecommunications Inc. (Xittel) are capable of serving 96% of the business local exchange service lines that Télébec is capable of serving in the Chibougamau exchange, and 81% of the business local exchange service lines that Télébec is capable of serving in the Rouyn-Noranda exchange.

5. Télébec indicated that the exchange of Val-d’Or meets the competitor presence test because a combination of Iristel, TCC, Videotron, and Xittel are capable of serving 84% of the business local exchange service lines that Télébec is capable of serving in that exchange.

6. Videotron submitted that although it provides fibre-based services to a limited number of customers in the Val-d’Or exchange, it is not capable of serving at least 75% of the business local exchange service lines that Télébec is capable of serving in that exchange.  

7. TCC stated that it has yet to begin offering services in each of the three exchanges, although it has informed the Commission of its intent to offer business local exchange services in these exchanges in the future.

8. Iristel submitted that it only provides local access-independent voice over Internet Protocol (VoIP)^{Footnote 3} services in the three exchanges.

9. Xittel did not respond to the present application. However, in Telecom Decision 2012-507, the Commission determined that Xittel did not constitute an independent, facilities-based, fixed-line telecommunications service provider that offers local exchange services for the purpose of the local forbearance test since it provides access-independent VoIP services. Télébec provided no substantive evidence indicating that Xittel is an access-dependent VoIP or traditional local access service provider in the three exchanges.

10. As noted in Telecom Decision 2012-507, the Governor in Council stated in Order Varying Telecom Decision CRTC 2005-28^{Footnote 4} that while local access-dependent VoIP services^{Footnote 5} are typically indistinguishable from traditional local telephone services, local access-independent VoIP services require high-speed Internet access as well as special handsets, adapters, or the use of a computer, and may be more susceptible to service deterioration or disruption. Therefore, the Governor in Council considered that local access-independent VoIP services are a distinct class of local telephone services for regulatory purposes.

11. Consequently, local access-independent VoIP services are not equivalent to local access services. Accordingly, Iristel and Xittel do not constitute independent, facilities-based, fixed-line telecommunications service providers that offer local exchange services for the purpose of the local forbearance test.

12. In light of the above, Télébec’s application does not meet the competitor presence test criterion of the local forbearance test and, therefore, the application does not meet all the local forbearance criteria set out in Telecom Decision 2006-15. As a result, the Commission does not need to address Télébec’s submissions with respect to the product market, or the company’s competitor quality of service results and communications plan.

13. Accordingly, the Commission denies Télébec’s application for forbearance from the regulation of business local exchange services in the exchanges of Chibougamau, Rouyn-Noranda, and Val-d’Or (Quebec).

Secretary General

Related documents

• TELUS Communications Company - Application for forbearance from the regulation of business local exchange services, Telecom Decision CRTC 2012-507, 24 September 2012
• 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

Date modified:

2015-08-07