Telecom Commission letter Adressed to Distribution List

Ottawa, 11 July 2016

Our reference: 8740-C6-201606831, 8740-M59-201606980, 8740-B2-201606873, 8740-V3-201606849, 8740-S22-201606823, 8740-T66-201606815, 8740-R28-201606808, 8740-S9-201606790, 8661-C12-201504829

BY EMAIL

Distribution List

RE:Tariff Notices filed pursuant to Telecom Decision CRTC 2016-117, Review of costing inputs and the application process for wholesale high-speed access services (Decision 2016-117)

Dear Madams/Sirs:

In Review of costing inputs and the application process for wholesale high-speed access services Telecom Decision CRTC 2016-117, dated 31 March 2016 (Decision 2016-117), the Commission directed all wholesale high-speed access (HSA) service providersFootnote 1 to file new tariff applications for banded non-legacy wholesale HSA service speeds,Footnote 2 reflecting the Commission’s determinations set out in that Decision. The Commission also directed wholesale HSA service providers that use the capacity based billing model to file the updated monthly capacity charge per 100 Mbps.

On 30 June 2016, the Commission received tariff applications from all wholesale HSA service providers except Eastlink, which was granted an extension until 2 August 2016.

On 5 July 2016, the Commission received a procedural request from the Canadian Network Operators Consortium Inc. (CNOC) regarding those tariff applications. Among other things, CNOC requested that the Commission:

  1. refrain from granting interim approval of the rates proposed by the wholesale HSA providers;
  2. order all of the wholesale HSA providers to submit revised cost studies, within 10 days to correct all inappropriate deviations; and
  3. order Bell Canada (including the operations of the former Bell Aliant Communications Limited Partnership) and TCC to file tariff notices and cost studies for any non-legacy wholesale HSA services for which they did not file those items on 30 June 2016.

CNOC submitted that these measures are necessary to reduce rate uncertainty and uncompetitive effects, ensure that the scope and purpose of this follow-up proceeding is respected through the filing of cost studies that do not contravene Commission rulings, and ensure that cost studies for all wholesale HSA services offered by the wholesale HSA providers are complete and meaningful.

On 8 July 2016, the Commission received comments on CNOC’s procedural requests from Shaw Cablesystems G.P. (Shaw) and Cogeco Communications Inc. (Cogeco). Cogeco and Shaw both opposed CNOC’s second procedural request on the basis that the usual tariff notice process permits new issues to be raised, and provides interested persons an opportunity to comment on any changes to costing parameters or methodologies employed in the costing studies. For the same reasons, Cogeco also submitted that CNOC’s first request, regarding the setting of interim rates, also be denied.

Commission staff has completed a preliminary review of several of the tariff applications and has identified several areas that will require in-depth analysis, including cost study methodologies, assumptions, and inputs.

In Decision 2016-117, the Commission indicated that currently wholesale HSA rates are likely not just and reasonable, and accordingly made interim all wholesale HSA service rates that are currently approved on a final basis. Commission staff recognizes the importance of setting final wholesale HSA service rates as soon as possible. Commission staff also recognizes that the cost study methodologies, assumptions, and inputs of the proposed tariffs are at the very heart of these applications.

Commission staff continues to examine these tariff applications, however additional time is required to fully evaluate them and determine whether or not revised interim rates will be set for the wholesale HSA services in question. Commission staff will advise all parties as to the next steps in the evaluation process in the near future.

Yours sincerely,

Original signed by

Lyne Renaud
Director, Competitor Services & Costing Implementation
Telecommunications sector

Distribution List

Lyne Renaud, CRTC, (lyne.renaud@crtc.gc.ca
Doug Thurston, CRTC, (doug.thurston@crtc.gc.ca)
Bell Canada:  bell.regulatory@bell.ca
MTS Allstream Inc.: iworkstation@mtsallstream.com
Saskatchewan Telecommunications: document.control@sasktel.sk.ca
TELUS Communications: regulatory.affairs@telus.com
Cogeco Cable Inc.: telecom.regulatory@cogeco.com
Quebecor Media Inc. (Videotron): regaffairs@quebecor.com
Rogers Communications Partnership: barry.choi@rci.rogers.com
Shaw Cablesystems G.P.: Regulatory@sjrb.ca
Bragg Communications Inc.: regulatory.matters@corp.eastlink.ca
CNOC Regulatory: regulatory@cnoc.ca
TekSavvy Solutions Inc.: regulatory@teksavvy.com
Vaxination Informatique: jfmezei@vaxination.ca
VMedia Inc.: george.burger@vmedia.ca
Steve Sorochan: steve.sorochan@gov.yk.ca
Darren Parberry: metisbus@yahoo.ca
Marcus Schultze: marcus.p.schultze@gmail.com

Footnotes

Footnote 1

Cogeco Cable Inc. (Cogeco), Saskatchewan Telecommunications (SaskTel), MTS Inc. (MTS), Shaw Cablesystems G.P. (Shaw), Quebecor Media Inc., on behalf of Videotron G.P. (Videotron), Rogers Communications Partnership (RCP), TELUS Communications Company (TCC), Bell Canada, and Bragg Communications Incorporated, operating as Eastlink (Eastlink).

Return to footnote 1

Footnote 2

In Telecom Regulatory Policy 2015-326, the Commission determined that rates for legacy wholesale HSA services, defined as services not provided over next-generation mixed fibre/copper networks, were to be frozen at existing levels.

Return to footnote 2

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