ARCHIVED - Telecom Commission Letter addressed to Distribution List

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Ottawa, 13 April 2016

Our reference:  8695-B54-201410902



RE:  Follow-up to Telecom Decision 2015-353 - Fact-finding process on the Imbalance Regime

Dear Madam, Sir:

In Bell Aliant Regional Communications, Limited Partnership and Bell Canada - Application regarding traffic imbalance payments to Fibernetics Corporation, Telecom Decision CRTC 2015-353, 4 August  2015  (Telecom Decision 2015-353), the Commission denied an application by Bell Aliant Regional Communications, Limited Partnership and Bell Canada (collectively, the Bell companies) regarding traffic imbalance payments to Fibernetics Corporation (Fibernetics). In that decision, the Commission noted concerns that had been raised on the record of the proceeding with regard to the existing compensation regime for traffic imbalance.Footnote 1 As a result, the Commission announced that it would initiate a fact-finding process to determine if sufficient cause exists to initiate a proceeding to examine whether this imbalance regime remains appropriate or requires adjustments.

Commission staff has now completed that the fact-finding exercise and considers that there is insufficient cause to initiate a review of the imbalance regime at this time.

In the fall of 2015, Commission staff held meetings with representatives from various telecommunications service providers, including local exchange carriers and resellers. From these meetings, Commission staff gathered information on:

Most of the participants in the fact-finding process were not in favour of a review by the Commission of the imbalance regime. Further, based on the information gathered, Commission staff notes that, in general, the traffic exchanged between incumbent and competitive LECs over

bill and keeps trunks is becoming increasingly balanced. The result is a general decline in imbalance compensation payments. Further, incumbents can take alternative measures that do not require regulatory approval to reduce the incentive to exploit imbalance traffic patterns.
Given the above,no further action will be taken regarding the imbalance regime at this time.

Sincerely yours,

Original signed by

Chris Seidl
Executive Director
Telecommunications Sector

Distribution List

Parties to proceeding leading to Telecom Decision 2015-353:
Bell Canada,
Canadian Network Operators Consortium Inc.,
Comwave Networks,
MTS Inc.
Rick Scheihauf, Fibernetics,  
Rogers Communications Partnership,
TELUS Communications Company,


Footnote 1

Background information on the compensation regime for traffic imbalance (the imbalance regime) can be found at paragraphs 1 – 4 of Telecom Decision 2015-353.

Return to footnote 1

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