Telecom Decision CRTC 2017-190

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Ottawa, 8 June 2017

File number: 8640-S4-201701748

Sogetel inc. – Application for forbearance from the regulation of business local exchange services

The Commission approves Sogetel inc.’s request for forbearance from the regulation of business local exchange services in the exchange of Nicolet, Quebec.

Introduction

1. The Commission received an application from Sogetel inc. (Sogetel), dated 8 March 2017, in which the company requested forbearance from the regulation of businesslocal exchange services^{Footnote 1} in the exchange of Nicolet, Quebec.
2. The Commission received a submission regarding Sogetel’s application from Cogeco Communications Inc. (Cogeco). The public record of this proceeding, which closed on 21 April 2017, 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. Pursuant to the Commission’s requirements in Telecom Decision 2006-15, Sogetel provided evidence to support its forbearance request, including competitor quality of service (Q of S) results for the six months preceding its application, and a draft communications plan for the Commission’s approval. The Commission has assessed Sogetel’s application by examining the four criteria set out below. These criteria are based on the local forbearance test originally set out in Telecom Decision 2006-15 and applied to the small incumbent local exchange carriers (ILECs), with modifications, in Telecom Regulatory Policy 2009-379.

Product market

4. Sogetel is seeking forbearance from the regulation of 16 tariffed businesslocal exchange services. In Telecom Decision 2005-35, the Commission found that services similar to those 16 services were eligible to be considered for forbearance.
5. The Commission received no comments with respect to Sogetel’s proposed list of businesslocal exchange services.

Competitor presence test

6. Information provided by parties demonstrates that there is, in addition to Sogetel, an independent, facilities-based, fixed-line telecommunications service provider^{Footnote 2} that offers local exchange services in the exchange of Nicolet and that is capable of serving at least 75% of the number of businesslocal exchange service lines that Sogetel is capable of serving.
7. Accordingly, the exchange of Nicolet meets the competitor presence test.

Competitor Q of S results

8. Sogetel attested that it received no Q of S complaints from competitors in the six months prior to the date of this application for forbearance.^{Footnote 3} As well, the Commission has received no comments with respect to Sogetel’s competitor Q of S results for that period.
9. Accordingly, Sogetel’s competitor Q of S is at a sufficient level to warrant forbearance from the regulation of business local exchange services in the exchange of Nicolet.

Communications plan

10. The Commission has reviewed Sogetel’s proposed communications plan and is satisfied that it meets the information requirements set out in Telecom Decision 2006-15. The Commission approves the proposed communications plan and directs Sogetel to provide the resulting communications materials to its customers, in both official languages where appropriate.

Conclusion

11. Sogetel’s application regarding the exchange of Nicolet, Quebec, meets all the local forbearance criteria set out in Telecom Decision 2006-15 and modified by Telecom Regulatory Policy 2009-379 for small ILECs.
12. Pursuant to subsection 34(1) of the Telecommunications Act (the Act), the Commission finds as a question of fact that to refrain from exercising its powers and performing its duties, to the extent specified in Telecom Decision 2006-15, in relation to the provision, by Sogetel in this exchange, of the businesslocal exchange services listed in the Appendix and of future local exchange services (as defined in Telecom Public Notice 2005-2 and as they pertain to businesscustomers only) would be consistent with the Canadian telecommunications policy objectives set out in section 7 of the Act.
13. Pursuant to subsection 34(2) of the Act, the Commission finds as a question of fact that these businesslocal exchange services are subject to a level of competition in this exchange sufficient to protect the interests of users of these services.
14. Pursuant to subsection 34(3) of the Act, the Commission finds as a question of fact that to refrain from exercising its powers and performing its duties, to the extent specified in Telecom Decision 2006-15, in relation to the provision by Sogetel of these businesslocal exchange services in this exchange would be unlikely to unduly impair the continuance of a competitive market for these services.
15. In light of the above, the Commission approves Sogetel’s application for forbearance from the regulation of the local exchange services listed in the Appendix and future local exchange services (as defined in Telecom Public Notice 2005-2), as they pertain to businesscustomers only, in the exchange of Nicolet, Quebec, subject to the powers and duties that the Commission has retained as set out in Telecom Decision 2006-15. This determination takes effect as of the date of this decision. The Commission directs Sogetel to issue revised tariff pages^{Footnote 4} within 30 days of the date of this decision.

Secretary General

Related documents

• Framework for forbearance from regulation of retail local exchange services in the serving territories of the small incumbent local exchange carriers, Telecom Regulatory Policy CRTC 2009-379, 23 June 2009
• 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
• List of services within the scope of the proceeding on forbearance from the regulation of local exchange services, Telecom Decision CRTC 2005-35, 15 June 2005; as amended by Telecom Decision CRTC 2005-35-1, 14 July 2005
• Forbearance from regulation of local exchange services, Telecom Public Notice CRTC 2005-2, 28 April 2005

Date modified:

2017-06-08