ARCHIVED - Telecom Commission Letter Addressed to Distribution list

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Ottawa, 7 November 2018

Our reference:  1011-NOC2018-0214


Distribution list

Re: Review of the price cap and local forbearance regimes, Telecom Notice of Consultation 2018-214 Footnote1 – Scope of the proceeding regarding the price floor test

The price floor test, which establishes a minimum price threshold for regulated services, was implemented in the 1990s in order to facilitate the development of sustainable competition by ensuring that retail tariff applications made by incumbent local exchange carriers (ILECs) were not anti-competitive. It also ensures that rates are just and reasonable and not unjustly discriminatory.

In Telecom Notice of Consultation 2018-214, the Commission set out the scope of the proceeding to review the price cap and local forbearance frameworks of the ILECs. Among other things, the Commission asked for comments on 1) whether changes are required to pricing constraints for regulated residential local exchange services; and 2) whether any measures are necessary to compensate the ILECs given that the local service subsidy will be eliminated, and if so, what measures would be appropriate.

In their interventions, Bell Canada Footnote2 , and Northwestel Inc. (Northwestel) proposed various changes and measures, including the following:

The Commission considers that addressing issues regarding the price floor test in two separate proceedings would create a considerable duplication of efforts for both the interveners and the Commission. In addition, the Commission notes that the price floor test also applies to retail services that are not specifically within the scope of this proceeding.

Accordingly, the Commission determines that the issue of eliminating the price floor test is not within the scope of the Telecom Notice of Consultation 2018-214 proceeding and will be addressed only within the context of the Part 1 application filed by Bell Canada.


Original signed by

Claude Doucet
Secretary General
c.c.: Christine Brock, CRTC, (873) 353-5852,

Attach. (1)

Distribution list:

9315-1884 Québec inc.,;
Amtelecom Limited Partnership,;
Bell Canada,;
Brooke Telecom Co-operative Ltd.,;
Bruce Telecom,;
Canadian Network Operators Consortium Inc.,;
CityWest Telephone Corporation,;
Cochrane Telecom Services of the Town of Cochrane,;
Cogeco Communications Inc.,;
CoopTel, coop de télécommunication,;
DMTS, a division of Bell Canada,;
Execulink Telecom Inc.,;
Eeyou Communications Network,,
Gosfield North Communication Co-operative Limited,;
Government of the Northwest Territories,;
Government of Yukon,;
Groupe Maskatel LP,;
Hay Communications Co-operative Limited,;
Huron Telecommunications Co-Operative Limited,;
Independent Telephone Providers Association,;
John Roman,;
KMTS, a division of Bell Canada,;
Lansdowne Rural Telephone Company Ltd.,;
Mornington Communications Co-operative Limited,
Nexicom Inc.,
North Frontenac Telephone Corporation Ltd.,
North Renfrew Telephone Company Limited Trade,;
NorthernTel, Limited Partnership,;
Northwestel Inc.,;
Ontera, a division of NorthernTel, Limited Partnership,;
People's Tel Limited Partnership,;
Public Interest Advocacy Centre,;
Quadro Communications Co-operative Inc.,;
Rogers Communications Canada Inc.;
Roxborough Telephone Company Limited,;
Saskatchewan Telecommunications,;
Shaw Communications Inc.,;
Sogetel inc.,;
SSi Micro Ltd.,;
Télébec, Limited Partnership,;
TELUS Communications Inc.,;
Tuckersmith Communications Co-operative Limited,;
Wightman Telecom Ltd.,;
WTC Communications,

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