Telecom - Secretary General Letter addressed to the Distribution List

Ottawa, 4 May 2023

Our reference: 1011-NOC2023-0056

BY EMAIL

Distribution List

Subject: Review of the wholesale high-speed access service framework, Telecom Notice of Consultation CRTC 2023-56 –Bell Canada – Request for an extension to filing deadlines – Commission Decision

In Telecom Notice of Consultation CRTC 2023-56 (the Notice), the Canadian Radio-television and Telecommunications Commission (Commission) acknowledged that Canada’s wholesale internet access framework is not meeting the objective of facilitating vibrant and sustainable competition. The Government of Canada, in its recent Policy Direction,Footnote1 requires the Commission to adjust this framework, as necessary, in a timely manner. In this proceeding, the Commission has consistently expressed its commitment to working with speed and efficiency.

Following issuance of the Notice, a number of incumbent carriers requested that the 24 April 2023 deadline for filing tariff applications and cost studies for fibre-to-the-premises (FTTP) facilities over aggregated HSA services be extended. At the same time, Shaw Cablesystems G.P. (Shaw) filed a letter in which it requested: (1) permission to exclude legacy FTTP facilities from its tariff application and cost study, and (2) an extension to the deadline for it to file its tariff application and cost study for its FTTP services over aggregated wholesale HSA services.

In a letter dated 27 March 2023, Commission staff rejected all requests for extensions to the filing deadlines (other than that requested by Shaw). In doing so, it re-iterated the need to resolve the policy issues under consideration as expeditiously as possible.

In a letter dated 20 April 2023, the Commission approved Shaw’s request to exclude its legacy FTTP facilities from its tariff application and cost study. This decision was based on the status of Shaw’s legacy FTTP facilities and its ongoing transition to new FTTP facilities. Given Shaw’s specific circumstances, the Commission granted an extension to 24 August 2023 for Shaw to gather and validate the relevant costing information and file the tariff application and cost study for its FTTP service.

In a letter dated 19 April 2023, Bell Canada requested an extension to the deadline to file its cost studies for FTTP facilities over aggregated wholesale HSA services. Bell Canada submitted that despite what it viewed as unprecedented efforts to prepare its filings within the required time, it had not yet received key IS/IT inputs that would impact the cost studies. Bell Canada submitted that once these inputs are received, it still requires time to validate them and complete the studies Bell Canada therefore requested an extension to the deadline for filing its cost studies from 24 April 2023 to 10 May 2023.

Bragg Communications Incorporated, carrying on business as Eastlink (Eastlink), Competitive Network Operators of Canada (CNOC), Cogeco Communications Inc. (Cogeco), Quebecor Media Inc., on behalf of Videotron Ltd. (Videotron), Rogers Communications Canada Inc. (RCCI), Saskatchewan Telecommunications (SaskTel), TekSavvy Inc. (TekSavvy), and TELUS Communications Inc. (TCI), filed responses related to Bell Canada’s request.

Positions of parties

Incumbent carriers generally supported Bell Canada’s request. In their responses, carriers asserted that they worked diligently to complete tariff applications and cost studies but, despite best efforts, would also not be able to file on time. Smaller incumbent carriers, including SaskTel, Cogeco, and Eastlink, further emphasized that they lack the scale and resources needed to meet the existing deadlines. Incumbent carriers proposed extensions to the filing deadlines that ranged from 12 May 2023 to 24 August 2023.

TCI requested an extension until 24 August 2023 on the grounds that it was in a similar situation as Shaw. TCI noted that, similar to Shaw, it is not currently mandated to make FTTP facilities available at a wholesale level. Accordingly, TCI submitted that it lacks experience in costing these services. TCI further submitted that having separate filing deadlines for TCI and Shaw would result in procedural unfairness as Shaw would be able to structure its filings with the benefit of having seen TCI’s filing.

TekSavvy opposed Bell Canada’s extension request. It submitted that it is currently losing subscribers due primarily to a lack of wholesale access to FTTP facilities. It argued that any delay to the current process will have a financial impact on the company, and that its ability to sustain a viable business should not be predicated on Bell Canada’s workload.  

CNOC submitted that although it is very concerned about procedural delays, it has significant interest in ensuring that the cost studies that are filed are accurate and comprehensive. CNOC proposed that deadlines for the filing of tariff applications and cost studies be extended to no later than 31 May 2023, which it noted was a date that many incumbents considered to be acceptable.

Commission determinations

TCI’s Requests

With respect to TCI’s request for an extension to 24 August 2023, the Commission notes that the extension granted to Shaw was informed not only by Shaw’s experience in the wholesale market, but also by specific evidence that it supplied on its network deployment plans. TCI provided no such evidence.

Furthermore, the Commission considers that TCI’s procedural fairness arguments are without merit. Cost studies follow an established and common methodology; the data used is company-specific; and much of the information that is commercially sensitive is likely to be filed in confidence. In these circumstances, it is the Commission’s view that different filing deadlines do not impact procedural fairness in this case.

Extension Requests

The Commission requires accurate and comprehensive costing data to be submitted quickly in this proceeding. This data is necessary, should regulatory intervention be warranted, for the Commission to facilitate vibrant and sustainable competition in the retail Internet service market. To that end, the Commission set accelerated deadlines in this proceeding for the filing of tariff applications and cost studies.

Earlier in this process, Commission staff rejected requests for extension to the filing deadlines. This rejection was made on the grounds that parties did not provide sufficient evidence demonstrating why an extension was necessary. Even in their current extension requests, incumbents provided little evidence to support their claims that they have made significant efforts to meet the relevant deadlines. The Commission will not accept such claims without supporting evidence.

In order to substantiate these claims, the Commission directs all incumbent carriers, with the exception of Shaw, to submit forthwith all work that they have prepared with respect to these filings to the Commission as of the date of this decision. These materials will be used as evidence to satisfy the Commission that carriers have undertaken a good faith effort to meet their deadlines. They will not form part of the record in this proceeding.

Smaller incumbents have made more convincing arguments that the limited scope and scale of their operations diminishes their ability to complete the necessary work within the existing deadlines. In these circumstances, the Commission recognizes that there is a need, particularly among smaller carriers, for additional time to complete their work. The Commission also recognizes that CNOC, which represents competitors that stand to benefit from expeditious access to FTTP facilities, has supported an extension of the filing deadlines for tariff applications and cost studies to 31 May 2023. While larger incumbents likely have the capacity to provide the required information within a shorter timeframe, there is administrative efficiency in having a single filing deadline for all incumbents.

In light of all of the above the Commission approves an extension to the deadlines for incumbent carriers (with the exception of Shaw) to file their tariff applications and cost studies to 31 May 2023. Shaw’s deadlines remain unchanged from those set out in the Commission’s 20 April 2023 letter.

The Commission remains committed to maintaining an expedient process, and to quickly resolving outstanding issues regarding wholesale access to FTTP facilities. Accordingly, the Commission is not predisposed to granting any further extension requests, except in rare and exceptional circumstances and where those requests are supported by sufficient evidence. The Commission will use all tools at its disposal to promote compliance by any parties found to be unduly delaying or otherwise impeding this proceeding

Yours sincerely,

Original signed by

Claude Doucet
Secretary General

Distribution list

Beanfield, todd@beanfield.com
Bell Canada, bell.regulatory@bell.ca
Canadian Anti-Monopoly Project (CAMP), keldon@antimonopoly.ca
CNOC, regulatory@cnoc.ca
Coextro, skhandor@coextro.com
Cogeco, telecom.regulatory@cogeco.com
Community Fibre, ben@communityfibre.ca
Competition Bureau, Conor.Parson@cb-bc.gc.ca
Comwave, legal@comwave.net
CPC, campbell@campbellpatterson.com
Devtel Communications Inc., devin@devtelcommunications.ca
Eastlink, regulatory.matters@corp.eastlink.ca
Execulink, yasmin.charania@execulinktelecom.ca
First Mile Connectivity Consortium, First Mile Connectivity Consortium
IGS Hawkesbury Inc., jbogue@hawkmail.ca
John Roman, johnphiliproman@gmail.com
Marc Nanni, mn_crtc@proton.me
National Capital FreeNet, execdir@ncf.ca
Netrevolution inc., drouleau@gtvr.com
OpenMedia, erin@openmedia.org
Public Interest Advocacy Centre, jlawford@piac.ca
RCCI, regulatory@rci.rogers.com
SaskTel, document.control@sasktel.com
Secure by Design, kirk@secure-by-design.com
Securenet , sergef@securenet.net
Shaw, Regulatory@sjrb.ca
SkyChoice Communications, serge@skychoice.ca
TCI (TELUS), regulatory.affairs@telus.com
TekSavvy, regulatory@teksavvy.ca
Truespeed Internet Services Inc., adam@truespeed.ca
Vaxination Informatique, jfmezei@vaxination.ca
Vaxxine Computer Systems Inc., president@vaxxine.com
Videotron, regaffairs@quebecor.com
WaveDirect Telecommunications Limited, joanne@wavedirect.org
Zayo Canada, william.mcconnell@zayo.com
Peter Keriakos, Peter.Keriakos@crtc.gc.ca
Tom Vilmansen, Tom.Vilmansen@crtc.gc.ca
Abderrahman Elfatihi, abderrahman.elfatihi@crtc.gc.ca
Adam Mills, adam.mills@crtc.gc.ca
Greg Lang, Greg.Lang@crtc.gc.ca

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