ARCHIVED - Commission Letter Addressed to Saskatchewan Telecommunications
This page has been archived on the Web
Information identified as archived on the Web is for reference, research or recordkeeping purposes. Archived Decisions, Notices and Orders (DNOs) remain in effect except to the extent they are amended or reversed by the Commission, a court, or the government. The text of archived information has not been altered or updated after the date of archiving. Changes to DNOs are published as “dashes” to the original DNO number. Web pages that are archived on the Web are not subject to the Government of Canada Web Standards. As per the Communications Policy of the Government of Canada, you can request alternate formats by contacting us.
Ottawa, 25 October 2018
Our references: 1011-NOC2017-0092
BY EMAIL
Bill Beckman
Senior Director – Regulatory Affairs
Saskatchewan Telecommunications
2121 Saskatchewan Drive
Regina, SK, Canada, S4P 3Y2
document.control@sasktel.com
Dear Sir:
Subject: Telecom Regulatory Policy CRTC 2018-213, Phase-out of the local service subsidy regime - Request for clarification of subsidy phase-out payments
By letter dated 24 September 2018, Saskatchewan Telecommunications (SaskTel) requested a clarification of the subsidy phase-out payments identified in Telecom Regulatory Policy 2018-213 with respect to when the first subsidy reduction would occur.
SaskTel noted that the Commission was clear that the process of phasing-out subsidy would begin in 2019 and be completed at the end of December 2021, pursuant to its determination that there be a three-year transition period with semi-annual reductions.
However, SaskTel submitted that the date on which the first reduction in subsidy would occur was not sufficiently clear. In SaskTel’s view, Telecom Regulatory Policy 2018-213 should be interpreted as the first subsidy reduction occurring on 1 July 2019. SaskTel considered that the references to the 1 January 2019 start date were intended to refer to the amount of subsidy to be paid at the beginning of the three-year transition period, and not to the first semi-annual reduction.
SaskTel submitted that the Commission instructing the Central Fund Administrator how to implement the subsidy phase-out in the 2018 revenue-percent charge decision would not provide sufficient notice noting that, over the past four years, the revenue-percent charge decisions had been issued in late November or early December and a first reduction occurring on 1 January 2019 would mean only one month’s notice of the change.
Commission response
Paragraph 51 of Telecom Regulatory Policy 2018-213 states “Regarding how the subsidy should be phased out, the Commission considers that starting with the total amount of subsidy paid during 2018 and reducing this amount as of 1 January 2019 at regular intervals during the transition period would simplify the phase-out process”. (emphasis added) The regulatory policy indicates that the subsidy reductions will begin on 1 January 2019, with reductions occurring semi-annually and subsidy reaching zero on 1 January 2022.
As noted in Telecom Regulatory Policy 2018-213, the Commission acknowledges that the decision to phase-out subsidy could have an impact on the ILECs and their financial plans, which is why, in that regulatory policy, it implemented a three-year transition period. Further, Telecom Regulatory Policy 2018-213 was published on 26 July 2018, which is six months prior to the 1 January 2019 start date the Commission identified for the transition period.
Accordingly, the Commission considers that no further clarification of Telecom Regulatory Policy 2018-213 is necessary.
Yours sincerely,
Original signed by
Claude Doucet
Secretary General
Canadian Radio-television and Telecommunications Commission
c.c.: Kim Wardle, CRTC, kim.wardle@crtc.gc.ca
Julie Cook, CRTC, julie.cook@crtc.gc.ca
Robert Thompson, CRTC, robert.thompson@crtc.gc.ca
- Date modified: