Telecom - Commission Letter addressed to the Distribution list
Ottawa, 3 June 2022
Our reference: 8740-S9-202007609 - 8740-V3-202107648
RE: Telecom Order 2022-96 – Shaw Cablesystems G.P. - Introduction of Internet 1500 wholesale high-speed access service
Telecom Order 2022-97 – Videotron Ltd. – Reintroduction of the aggregated Giga service and of the disaggregated Giga service and introduction of the aggregated 1.5 Giga service and of the disaggregated 1.5 Giga service – Extension request
On 5 April 2022, the Commission issued Telecom Order 2022-96Footnote1 and Telecom Order 2022-97Footnote2 , which directed Shaw and Videotron to file, within 60 days of the OrdersFootnote3, cost studies in support of Shaw’s Speed Band 10 as well as for Speed Band 9, which had been granted interim approval in Telecom Order 2021-57 on February 11, 2021, and a cost study in support of Videotron’s 1001 to 1500 Mbps download tier of its aggregated service.
The Commission is in receipt of a letter from Shaw Cablesystems G.P. (Shaw) and of a letter from Videotron Ltd. (Videotron), both dated 20 May 2022, requesting an extension of the deadlines to submit respective cost studies by 45 daysFootnote4.
Shaw, supported by Videotron submitted that this extension is necessary and reasonable in the circumstances as it will support the accuracy and completeness of their cost studies without having any negative impact on resellers or on consumers.
Shaw, supported by Videotron, explained that the task of preparing a cost study pursuant to Phase II methodology is a highly complex, resource, and time-intensive process that requires the engagement and input of key personnel from teams across the Shaw organization, including Engineering, Finance, IT, and Regulatory, as well as collaboration with external costing experts. Videotron added that they must rely on a relatively new team which needs to familiarize itself with Phase II methodology principles.
Shaw submitted that without an extension, it is concerned that its cost studies for the new speed bands may not adequately or fully reflect the elements required by Phase II methodology.
Finally, Shaw and Videotron added that granting the requested 45-day delay would have no impact on the market for high-speed Internet or on their TPIA customers since Shaw and Videotron’s TPIA services subject to cost study requirements are already available.
In its reply dated 26 May 2022, TekSavvy objected to Shaw and Videotron’s extension requests and asked the Commission to reject those requests, or in the alternative, to only grant them an extension period of 15 days. TekSavvy added that neither Shaw nor Videotron have demonstrated any complexity associated with the cost studies they must prepare that would justify their requested extension.
TekSavvy added that any delay in setting final rates, which brings predictability and stability to a wholesale competitors’ access to services, is harmful. Furthermore, that harm to competitors will undeniably be exacerbated by granting an extension, since the regulatory uncertainty that is created by the possibility of a retroactive adjustment is a deterrent to offering the services and the longer the interim rates remain in effect, the larger any retroactive adjustment will be.
The Commission is of the view that an extension by 45 days to the cost studies submission deadlines would not carry a significant negative impact to TPIA customers while allowing for additional time to ensure accuracy and completeness of the cost studies. Accordingly, and considering the circumstances, the Commission considers that an extension of the cost studies submission deadline is reasonable.
Accordingly, Shaw and Videotron are to provide the requested cost studies as specified by 19 July 2022.
All documents to be filed must be received, not merely sent, by that date. Parties are asked to serve all other parties with any documents filed in this proceeding, and to send an electronic copy directly to Commission staff.
Original signed by
c.c.: Chris Noonan, CRTC, firstname.lastname@example.org
Abderrahman El Fatihi, CRTC, email@example.com
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