Telecom Decision CRTC 2018-418

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Ottawa, 6 November 2018

Public record: 8640-B2-201805524

Bell Canada– Application for forbearance from the regulation of residential local exchange services

The Commission approves Bell Canada’s request for forbearance from the regulation of residential local exchange services in 34 Bell Aliant exchanges in Newfoundland and Labrador, five Télébec, Société en commandite exchanges in Quebec, and two NorthernTel, Limited Partnership exchanges in Ontario.

Background

1. The Commission set out the details of the framework for forbearance from the regulation of local exchange services (local forbearance), including the local forbearance criteria, in Telecom Decision 2006-15. In Telecom Regulatory Policy 2009-379, the Commission applied that framework, with modifications, to the small incumbent local exchange carriers (ILECs).
2. In Telecom Regulatory Policy 2018-213, the Commission determined that several regulated residential high-cost serving area exchanges meet the competitor presence test, which is one of the local forbearance criteria. These exchanges are therefore eligible for local forbearance, subject to the other criteria being met.
3. Having determined that the competitor presence test was met, the Commission directed certain ILECs to file a streamlined forbearance application with respect to the local exchange services they offer in the exchanges listed in the Appendix to Telecom Regulatory Policy 2018-213.

Application

4. In response to its direction, the Commission received an application from Bell Canada, on behalf of itself (its Bell Aliant division), Télébec, Société en commandite (Télébec), and NorthernTel, Limited Partnership (NorthernTel), dated 26 July 2018, in which the company requested forbearance from the regulation of residentiallocal exchange services^{Footnote 1} in 34 Bell Aliant exchanges in Newfoundland and Labrador, five Télébec exchanges in Quebec, and two NorthernTel exchanges in Ontario. A list of these exchanges is set out in Appendix 1 to this decision. Bell Canada requested that forbearance be implemented on 1 January 2019.
5. The Commission received no interventions with respect to Bell Canada’s application.

Commission’s analysis and determinations

6. Pursuant to the Commission’s requirements in Telecom Decision 2006-15, Bell Canada, on behalf of itself, Télébec, and NorthernTel, provided (i) evidence to support its forbearance request, including competitor quality of service (Q of S) results for the six months preceding its application, and (ii) a draft communications plan for the Commission’s approval.
7. The Commission has assessed Bell Canada’s application by examining the criteria set out below. With respect to Bell Canada and Télébec, the criteria are based on the local forbearance test set out in Telecom Decision 2006-15. With respect to NorthernTel, the criteria are based on the local forbearance test originally set out in Telecom Decision 2006-15 and applied to the small ILECs, with modifications, in Telecom Regulatory Policy 2009-379.

Product market

8. Bell Canada is seeking forbearance from the regulation of 16 tariffed residential local exchange services in Bell Aliant’s territory, 20 tariffed residential local exchange services in Télébec’s territory, and 19 tariffed residential local exchange services in NorthernTel’s territory. A list of these services is set out in Appendix 2 to this decision. In Telecom Decision 2005-35, the Commission found that services similar to these services are eligible to be considered for forbearance.

Competitor Q of S results

9. Bell Canada, on behalf of itself and Télébec, submitted competitor Q of S results for the period of October 2017 to March 2018. The Commission has reviewed these results and finds that Bell Canada has demonstrated that during this six-month period, Bell Canada and Télébec
   1. met, on average, the Q of S standards for each indicator set out in Appendix B of Telecom Decision 2006-15, as defined in Telecom Decision 2005-20, with respect to the services provided to competitors in their territories; and
   2. did not consistently provide any of those competitors with services that were below those Q of S standards.
10. Accordingly, Bell Canada and Télébec meet the competitor Q of S criterion for this period.
11. Bell Canada attested that NorthernTel received no Q of S complaints from competitors in the six months prior to the date of this application for forbearance.^{Footnote 2} As well, the Commission has received no comments with respect to NorthernTel’s competitor Q of S results for that period.
12. Accordingly, NorthernTel’s competitor Q of S results warrant forbearance from the regulation of residential local exchange services in the NorthernTel exchanges listed in Appendix 1 to this decision.

Communications plan

13. The Commission has reviewed the proposed communications plan mentioned in paragraph 6 above and is satisfied that it meets the information requirements set out in Telecom Decision 2006-15. However, the following changes must be made to the communications plan:
    1. modify the name and contact information for the “Commissioner for Complaints for Telecommunications Services” to the “Commission for Complaints for Telecom-television Services” (CCTS), include the CCTS’s TTY (teletypewriter) number, and remove the email address complaints@ccts-cprst.ca;
    2. modify the contact information for the Canadian Radio-television and Telecommunications Commission to refer to TTY rather than TDD and change the mailing address to “Ottawa, Ontario  K1A 0N2”; and
    3. update, as appropriate, the contact information for the other organizations listed in the plan.
14. The Commission approves the proposed communications plan and directs Bell Canada, Télébec, and NorthernTel to provide the resulting communications materials to their customers, in both official languages where appropriate.

Other matter: Implementation date

15. Bell Canada requested that forbearance be implemented on 1 January 2019 in order to allow time for the implementation of the communications plan.
16. Forbearance determinations regarding local exchange services take effect as of the publication date of the relevant Commission decision, with implementation of the communications plan to follow. The Commission finds that Bell Canada has not sufficiently justified changing this practice. Consequently, forbearance takes effect as of the date of this decision.

Conclusion

17. Bell Canada’s application regarding the 34 Bell Aliant exchanges in Newfoundland and Labrador and the five Télébec exchanges in Quebec meets all the local forbearance criteria set out in Telecom Decision 2006-15. Bell Canada’s application regarding the two NorthernTel exchanges in Ontario meets all the local forbearance criteria set out in Telecom Decision 2006-15 and modified by Telecom Regulatory Policy 2009-379 for small ILECs.
18. 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 Bell Canada, Télébec, and NorthernTel in these exchanges, of the residentiallocal exchange services listed in Appendix 2 to this decision and of future local exchange services (as defined in Telecom Public Notice 2005-2 and as they pertain to residentialcustomers only) would be consistent with the Canadian telecommunications policy objectives set out in section 7 of the Act.
19. Pursuant to subsection 34(2) of the Act, the Commission finds as a question of fact that these residentiallocal exchange services are subject to a level of competition in these exchanges sufficient to protect the interests of users of these services.
20. 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 Bell Canada, Télébec, and NorthernTel of these residentiallocal exchange services in these exchanges would be unlikely to unduly impair the continuance of a competitive market for these services.
21. In light of the above, the Commission approves Bell Canada’s application for forbearance from the regulation of the local exchange services listed in Appendix 2 to this decision and future local exchange services (as defined in Telecom Public Notice 2005-2), as they pertain to residentialcustomers only, in the exchanges listed in Appendix 1 to this decision, 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 Bell Canada, Télébec, and NorthernTel to issue revised tariff pages^{Footnote 3} within 30 days of the date of this decision.

Secretary General

Related documents

• Phase-out of the local service subsidy regime, Telecom Regulatory Policy CRTC 2018-213, 26 June 2018
• 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
• Finalization of quality of service rate rebate plan for competitors, Telecom Decision CRTC 2005-20, 31 March 2005

Date modified:

2018-11-06