ARCHIVED - Telecom Procedural Letter Addressed to William Sandiford (Canadian Network Operators Consortium Inc.)

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Ottawa, 17 September 2015

Our reference:  8661-C182-201503946


Mr. William Sandiford
Chair of the Board and President
Canadian Network Operators Consortium Inc.
107-85 Curlew Drive
Toronto, ON,  M3A 2P8

RE:  Telecom Procedural Letter - CNOC Part 1 Application to make usage sensitive rates interim

Dear Mr. Sandiford:

The present letter is in regards to a Part 1 application, dated 29 April 2015, in which the Canadian Network Operators Consortium Inc. (CNOC) requests that the Commission make interim the usage sensitive ratesFootnote 1 associated with certain large telephone and cable companies’Footnote 2 wholesale high-speed access (HSA) services on the grounds that they are no longer just and reasonable.

Since the filing of CNOC’s application, the Commission has issued Review of costing inputs and application process for wholesale high-speed access services, Notice of Consultation 2015-225, dated 28 May 2015 (NoC 2015-225). A number of matters under review in that proceeding are directly relevant to an assessment of the underlying claim set forth in CNOC’s application, namely that the usage sensitive rates associated with the wholesale HSA services of certain carriers are no longer just and reasonable. In this regard, NoC 2015-225 addresses, among other things, the continued validity of the annual traffic growth assumption, the costs associated with transmission and switching equipment and their year-over-year trends.

The Commission considers that the record generated by the NoC 2015-225 proceeding will assist the Commission to make a more informed determination as to whether the existing wholesale HSA rates, including the usage sensitive rates, should be made interim.

The Commission has therefore determined that the record of CNOC’s Part 1 application is to be merged with that of NoC 2015-225. Accordingly, the Commission intends to address the matter as to whether rates should be made interim in its disposition of the matters raised in the NoC 2015-225 proceeding.


Original signed by Luc Bégin for

John Traversy
Secretary General

c. c.:  Lyne Renaud, CRTC,
Doug Thurston, CRTC,
Rizwana Alamgir-Arif, CRTC,
Rogers Communications Partnership,
Cogeco Cable Inc.,
Québecor Média inc. (Videotron G.P.),
Shaw Cablesystems G.P.,
Bell Canada,
Saskatchewan Telecommunications,
Telus Communications Company,
Bell Aliant Regional Communications,
Bram Abramson, TekSavvy Solutions Inc.,
hristian S. Tacit, Tacit Law,
Jean-François Mezei, Vaxination informatique,
Steve Sorochan,
Marcus Schultze,
Patti Langlotz, MTS,
Alexei Tchernobrivets,
Natalie MacDonald,


Footnote 1

Usage sensitive rates may include access rates that contain usage sensitive components, and the network capacity rates offered in increments of 100 Mbps, collectively the Capacity Based Billing (CBB) rates. Usage sensitive rates may also include the usage sensitive portion of rates determined through the Flat Rate Billing model, which includes both an access component and an implied usage assumption, but allows independent service providers to pay a flat fee per month to wholesale HSA service providers, regardless of usage.

Return to footnote 1

Footnote 2

CNOC’s request pertains to the usage sensitive rates of Bell Aliant Regional Communications, Limited Partnership, Bell Canada, Cogeco Cable Inc., Rogers Communications Partnership, Saskatchewan Telecommunications, Shaw Cablesystems G.P., Videotron G.P. and TELUS Communications Company.

Return to footnote 2

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