Telecom Commission Letter Addressed to Distribution List

Ottawa, 25 November 2016

Our references:  8740-B2-201606873, 8740-C6-201606831, 8740-M59-201606980, 8740-R28-201606808, 8740-S22-201606823, 8740-S9-201606790, 8740-T66-201606815, 8740-V3-201606849, 8740-E17-201610262

BY EMAIL

Distribution

RE:  Tariff notice applications concerning aggregated wholesale high-speed access services

Dear Madam, Sir:

This letter serves to clarify the forthcoming tariff application process related to the setting of rates on a final basis for the aggregated wholesale high-speed access (HSA) services.

In Telecom Decision 2016-117Footnote 1 , the Commission directed all wholesale HSA service providers to file new tariff applications for bandedFootnote 2 non-legacy aggregated wholesale HSA service speeds, reflecting the Commission’s determinations set out in that decision. The Commission also directed wholesale HSA service providers that use the capacity based billing (CBB) modelFootnote 3 to file their updated monthly capacity rate per 100 Mbps.

The Commission received tariff applications, dated 30 June 2016, from Bell Canada, Cogeco Communications Inc. (Cogeco); MTS Inc. (MTS); Quebecor Media Inc., on behalf of Videotron G.P.; Rogers Communications Canada Inc.; Saskatchewan Telecommunications (SaskTel); Shaw Cablesystems G.P. (Shaw); TELUS Communications CompanyFootnote 4 and Bragg Communications Incorporated, carrying on business as Eastlink was granted an extension and filed its application on 9 September 2016.

In Telecom Order 2016-396Footnote 5 and Telecom Order 2016-448Footnote 6 , the Commission revised the proposed rates filed by the wholesale HSA service providers. The Commission expressed concern that certain wholesale HSA service providers did not provide sufficient costing details in their studies, did not conduct their cost studies in accordance with Phase II costing principles, as detailed in their Regulatory Economic Studies Manual (the Manual), and/or did not justify any departures from the principles and methodologies set out in the Manual and past Commission determinations. Revised rates were approved on an interim basis.

The timelines set out below take into account parties’ workloads and procedural dates associated with two other ongoing proceedings:  1) the finalization of GSM-based wholesale roaming services tariffs, Footnote 7 and 2) the implementation of a disaggregated wholesale high-speed access service.Footnote 8

Process

In order to assist the Commission in reviewing the proposed tariffs, requests for information will be issued to wholesale HSA service providers in mid-December 2016.

Responses to Commission staff requests for information are to be filed with the Commission and served on all other parties by 27 February 2017.
Any requests for further responses and for public disclosure of information designated confidential by the wholesale HSA service providers are to be made by 13 March 2017.

The wholesale HSA service providers are to file their responses to requests for further information and for public disclosure, serving copies on all other parties, by 23 March 2017.

Commission staff intends to issue determinations on requests for further information and requests for public disclosure by 7 April 2017.

Any information to be provided by the wholesale HSA service providers in response to those determinations is to be filed with the Commission, and served on all other parties, by 18 April 2017.

Interested parties may file an intervention with the Commission, serving copies on all other parties, by 19 May 2017.

Parties may file reply comments with the Commission, serving copies on all other parties, by 31 May 2017.

Sincerely,

Original signed by

Lyne Renaud
Director, Competitor Services and Costing Implementation
Telecommunication Sector

c.c.:  Doug Thurston, CRTC, doug.thurston@crtc.gc.ca
Ramin Adim, CRTC, ramin.adim@crtc.gc.ca

Distribution List

Footnotes

Footnote 1

Telecom Decision CRTC 2016-117, entitled Review of costing inputs and the application process for wholesale high-speed access services, dated 31 March 2016

Return to footnote 1

Footnote 2

Under this rate-setting approach, various service speeds with similar costs are banded together. A single access rate would apply for service speeds contained within each band. The rate for each band is established on the weighted-average costs of all service speeds within the band.

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Footnote 3

Rates determined using the CBB model have two components: (i) a monthly rate per speed band for access to the network, and (ii) a separate rate for capacity in increments of 100 Mbps. The CBB model requires that a competitor determine in advance the amount of capacity it will need to provision Internet and other services to its end-users.

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Footnote 4

The Commission received the initial tariff applications on 30 June 2016. Cogeco and MTS filed amendments to the initial applications on 5 July 2016, SaskTel on 14 July 2016, and Shaw on 15 July 2016.

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Footnote 5

Telecom Order CRTC 2016-396, entitled Tariff notice applications concerning aggregated wholesale high-speed access services – Revised interim rates, dated 6 October 2016.

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Footnote 6

Telecom Order CRTC 2016-448 entitled Bragg Communications Incorporated, operating as Eastlink – Revised interim rates for aggregated wholesale high-speed access service, dated 10 November 2016.

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Footnote 7

Follow up to Telecom Decision CRTC 2015-177, entitled Regulatory framework for wholesale mobile wireless services, dated 5 May 2015.

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Footnote 8

Follow up to Telecom Decision CRTC 2016-379, entitled Follow-up to Telecom Regulatory Policy 2015-326 – Implementation of a disaggregated wholesale high-speed access service, including over fibre-to-the premises access facilities, dated 20 September 2016.

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