Telecom Decision CRTC 2017-383

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Ottawa, 26 October 2017

File number: 8663-Q29-201707035

9315-1884 Québec inc. – Application to modify the band assignment for the Lambton wire centre

The Commission approves, effective 1 January 2017, the reclassification of 9315-1884 Québec inc.’s Lambton wire centre to Band E.

Introduction

1. During the 1990s, through a series of proceedings and decisions, the Commission opened up various telecommunications markets to competition, including the local telephone market, to enhance the Canadian telecommunications system and to give Canadians the benefits of competition. The Commission also established a subsidy regime, whereby money is collected from telecommunications companies to subsidize residential telephone service.
2. Under this subsidy regime, incumbent local exchange carriers (ILECs) receive a monthly subsidy from the National Contribution Fund for providing residential telephone service in rate regulated high-cost serving areas (HCSAs).^{Footnote 1} The amount of subsidy paid per month varies by ILEC and by band.^{Footnote 2} This subsidy regime ensures that residential local telephone service rates are just and reasonable, as required by subsection 27(1) of the Telecommunications Act.
3. The Commission received an application from 9315-1884 Québec inc. (9315-1884 Québec),^{Footnote 3} dated 14 August 2017, in which the company requested that the band assignment approved in Telecom Regulatory Policy 2013-160 for its Lambton wire centre be modified from Band F-1 to Band E, effective 1 January 2017.^{Footnote 4}
4. 9315-1884 Québec acknowledged that its Lambton wire centre had been appropriately classified as Band F-1 in Telecom Regulatory Policy 2013-160. However, 9315-1884 Québec submitted that the wire centre’s total network access service (NAS) count has declined steadily and it is now below the Band F-1 lower threshold.
5. The Commission received no interventions with respect to this application. The public record of this proceeding, which closed on 15 September 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

6. Based on the information provided, 9315-1884 Québec’s Lambton wire centre has dropped below the Band F-1 lower threshold, and its total NAS has continued to decline. Therefore, it is appropriate for the wire centre to be reclassified as Band E.
7. Accordingly, the Commission approves, effective 1 January 2017, the reclassification of 9315-1884 Québec’s Lambton wire centre from Band F-1 to Band E.
8. The Commission directs the Central Fund Administrator to adjust the distribution of monthly subsidy for the Lambton wire centre to reflect this revised band assignment and to use the interim 2017 Band E rate approved for 9315-1884 Québec in Telecom Decision 2016-473.

Secretary General

Related documents

• Final 2016 revenue-percent charge and related matters, Telecom Decision CRTC 2016-473, 2 December 2016

• Regulatory framework for the small incumbent local exchange carriers and related matters, Telecom Regulatory Policy CRTC 2013-160, 28 March 2013
• Regulatory framework for the small incumbent telephone companies, Decision CRTC 2001-756, 14 December 2001

Date modified:

2017-10-26