Telecom - Staff Letter addressed to the Distribution List

Ottawa, 12 January 2024

Our reference: 8740-B2-202304145, 8740-C6-202304062, 8740-E17-202304038, 8740-R28-202304054 , 8740-S9-202304070 , 8740-T66-202304088, 8740-T69-202303502, 8740-V3-202304046

BY EMAIL

Distribution List

Subject: Tariff Notices related to the introduction of Fibre-to-the-Node (FTTN) aggregated wholesale high-speed access service for Commission approval pursuant to the Commission’s direction in Telecom Notice of Consultation CRTC 2023-56 – Notice of Hearing – Review of the wholesale high-speed access service framework (TNC 2023-56) (Bell Canada Tariff Notice 7571, Cogeco Tariff Notice 67, Eastlink Tariff Notice 46, Rogers Tariff Notice 79, Shaw Tariff Notice 42, TELUS Tariff Notice 584, 583A, 657A, and Videotron Tariff Notice 63) – staff ruling on disclosure requests of certain information filed in confidence and deficiencies

This letter addresses requests for disclosure of information filed in confidence and deficiencies in the above noted tariff applications filed by Bell Canada; Bragg Communications Incorporated, operating as Eastlink (Eastlink); Cogeco Communications Inc. on behalf of Cogeco Connexion Inc. (Cogeco); Rogers Communications Canada Inc. (Rogers); Shaw Cablesystems G.P. (Shaw); TELUS Communications Company (TCC); and Québecor Média inc. on behalf of its affiliate Videotron (Videotron) (the incumbents). These applications were filed as part of the review of the wholesale high-speed access service framework including the provision of Fibre-to-the-Node (FTTN) facilities over aggregated wholesale high-speed access (HSA) services pursuant to the Commission’s direction in Telecom Notice of Consultation CRTC 2023-56 – Notice of Hearing – Review of the wholesale high-speed access service framework (TNC 2023-56).

On 30 June 2023, the Competitive Network Operators of Canada Inc. (CNOC) filed requests for disclosure of information for which confidentiality had been claimed and requests for additional information regarding the above noted tariff applications.

Disclosure

Commission staff notes that requests for disclosure of information designated as confidential are addressed in light of sections 38 and 39 of the Telecommunications Act (the Act) and sections 30 and following of the CRTC Rules of Practice and Procedure (the Rules of Procedure). In evaluating a request, an assessment is made as to whether the information falls into a category of information that can be designated as confidential pursuant to section 39 of the Act. An assessment is then made as to whether there is any specific direct harm likely to result from the disclosure of the information in question and whether any such harm outweighs the public interest in disclosure. In making this evaluation, a number of factors are taken into consideration, including the degree of competition and the importance of disclosure of the information for the purpose of obtaining a fuller record. The factors considered are discussed in more detail in Procedures for filing confidential information and requesting its disclosure in Commission proceedings, Broadcasting and Telecom Information Bulletin CRTC 2010-961, 23 December 2010, as amended by Broadcasting and Telecom Information Bulletin CRTC 2010-961-1, 26 October 2012.

Commission staff has reviewed the requests filed by CNOC, as well as reply comments from the incumbents, and considers that disclosure of certain information, as specified in Attachment 2-A of this letter, is appropriate and in the public interest.

Deficiencies

After careful review of the cost studies and the supporting documents filed, Commission staff notes that some filings from the incumbents were partial or incomplete. Remedying these deficiencies, which are identified in Attachment 2-B of this letter, will contribute to a fulsome record of the FTTN aggregated wholesale high-speed access service models and allow for a better assessment of the matters at issue in this proceeding.

As a result, the incumbent carriers are to provide the information as outlined in Attachment 2-B of this letter in accordance with the below process.

Process

Commission staff sets out the following process to address disclosure and deficiencies.

The incumbent carriers are to disclose the information specified in Attachment 2-A of this letter and to provide additional information as specified in Attachment 2-B of this letter, by 22 January 2024. The information is to be filed with the Commission and served on all parties in the attached distribution list.

Any party may submit comments with respect to the additional information directed to be disclosed by 29 January 2024, serving a copy on incumbents. Incumbents may reply to any such comments by no later than 05 February 2024.

Sincerely,

Original signed by

Chris Noonan
Director, Competitor Services & Costing Implementation
Telecommunication sector

c.c.:  Abderrahman El Fatihi, CRTC 819-953-3662 AbderRahman.ElFatihi@crtc.gc.ca
Tom Vilmansen, CRTC 819-997-9253 Tom.Vilmansen@crtc.gc.ca

Distribution List

Bell Canada bell.regulatory@bell.ca
Bragg Communications Incorporated regulatory.matters@corp.eastlink.ca
Cogeco Communications Inc. telecom.regulatory@cogeco.com
Rogers Communications Canada Inc.regulatory@rci.rogers.com
Shaw Cablesystems G.P.Regulatory@sjrb.ca
TELUS Communications Inc. regulatory.affairs@telus.com
Quebecor Media Inc., on behalf of Videotron Ltd. regaffairs@quebecor.com
Patrick Desy patrick.desy@quebecor.com
TekSavvy Solutions Inc. regulatory@teksavvy.ca
Andy Kaplan-Myrth, TekSavvy akaplanmyrth@teksavvy.ca
CNOC Regulatory regulatory@cnoc.ca
Tacit Law Regulatory regulatory@tacitlaw.com

Disclosure of Information and Outstanding Deficiencies

A - Disclosure of Information Designated as Confidential

Eastlink

Eastlink TN 46 filed 22 June 2023, Bragg Communications Inc. Regulatory Economic Study in Support of Aggregated Hybrid Fibre-Coaxial Cable Third Party Internet Access Service

For section 5.3 of the study report, disclose the following:

  1. The financial parameters associated with the Cost of Equity and Cost of Debt.

Rogers

Rogers TN79 filed on 22 June 2023, Rogers Communications Report on the Economic Evaluation for Aggregated Fibre to the Node Third Party Internet Access (TPIA) Service – Monthly End-User Access Rates and Monthly Capacity Charge per 100 Mbps.

For paragraph 56 of the study report, disclose the following:

  1. The Target K Value associated with Rogers’ QoE level found in paragraph 56 of their report.

Shaw

Shaw TN42 filed on 22 June 2023, Regulatory Economic Study in Support of Aggregated Third Party Internet Access Service (TPIA) Over Hybrid Fibre Coaxial Facilities (HFC) Monthly End-User Access Rates by Speed Band & Capacity Based Billing (CBB) Rate

For page 23 of the study report, disclose the following:

  1. TPIA HFC Service Regulatory Economic Study: Data found on page 23 of 38, in the table titled, “Total internet capacity per node calculation”, in the row titled, “Capacity (Mbps) per node”, for columns “Prior Regulatory Economic Study” and “Current Regulatory Economic Study”.

Videotron

Videotron TN63 filed on 22 June 2023, Service d’Accès Internet aux Tierces Parties (Service AITP) – Architecture groupée – Frais d'accès mensuels et Frais mensuel relatif à la capacité.

For the listed tables which are provided as attachments to the study report, disclose the following:

  1. Tableaux de support – Tableau 1: All information contained in Table 1 - Sommaire des incidences sur les revenus et les coûts- Demande AITP- Frais mensuel relatif à l'usage and in Table 1 - Sommaire des incidences sur les revenus et les coûts- Demande AITP- Frais d'accès mensuel.
  2. Tableaux de support – Tableau 13b: The major equipment service lives contained in Table 13b - Coûts en immobilisations attribuables à la demande – Modèle FFC des grands câblodistributeurs.
  3. Tableaux de support – Tableau 6b: If applicable, the equipment capacity, the equipment warehouse and distribution loading, and the time estimates associated with the proposed monthly access rates and CBB rates contained in all Table 6bs submitted with TN63.

B - Deficiencies

Cogeco

Cogeco TN67 filed on 22 June 2023, Economic Evaluation for the Tariff Revision of Third Party Internet Access Service – Monthly Access Rates and Capacity Charge per 100 Mbps applied to aggregated TPIA services provided at both Cogeco provincial POIs

For the listed tables, provide the following:

Appendix 5 - Table 6a - Expenses Casual to Demand

  1. Confidential and abridged versions of Table 6a.

Appendix 5 - Table 6b - Capital Equipment

Refer to Cogeco’s submission, dated 30 April 2018, titled, “Cogeco(CRTC)02Mar18-20-21 Attachment 1 – Updated CRTC Table 6b”, tab titled, “Table 6b - Capital”, in the section titled, “A1 - Complete the following table for each unit cost developed based on supplier price provided above (add additional table as required)”, rows 66 through 236, columns A through T, where Cogeco provided the detailed information regarding its capital equipment unit costs.

  1. An updated Table 6b, which includes a completed section A1, consistent with the level of detail provided with its submission referenced above, for the following capital equipment:
    1. CCAP
    2. Nodes (Outside Plant) – Rural and Urban –
      1. Node Equipment
      2. Fibre Segmentation
    3. Amplifier (Outside Plant)
    4. Cable Cost
    5. IP Routing – Edge and Core Routers
    6. Optical Transport (DWDM) – Equipment
    7. Optical transport (DWDM) – Fibre Cable
  2. An abridged version of this updated Table 6b provided in ii. above, which discloses on the public record the data provided for the following columns:
    1. Item
    2. Asset Class/Asset Code
    3. Sub-component Description
    4. Supplier Price Vintage
    5. Sales Tax
    6. Warehouse and Distribution Factor (W&D)
    7. Supplier Identified Capacity (Specify Units)
    8. Capacity Driver Description
    9. Average Working Fill Factor (AWFF)
    10. AWFF Vintage

Appendix 5 - Table 6c - Capital and Expense Parameters & Appendix 5 - Table 6d - Revenues

  1. Abridged versions of Table 6c and 6d consistent with the 2013 Commission staff letter directivesFootnote1 for wholesale services HSA and disclose all relevant expenses and capital unit cost details consistent with the disclosure requirements of TRP 2012-592.

EASTLINK

Eastlink TN 46 filed 22 June 2023, Bragg Communications Inc. Regulatory Economic Study in Support of Aggregated Hybrid Fibre-Coaxial Cable Third Party Internet Access Service

For the listed tables, provide the following:

Table 6bs – Capital Equipment:

Refer to Eastlink’s submission, dated 06 March 2017, titled, “Costs_-_Eastlink_TPIA_Cost_Model_CRTC_Baseline__17_03_06”, tabs titled,

  1. Updated Table 6bs, with inclusion of a completed section A1, consistent with the level of detail provided with its submission referenced above, for the following capital equipment:
    1. Transport - Equipment
    2. Core Network
    3. Edge Network
    4. CMT (Cable Modem Termination)
    5. Nodes Outside Plant
      1. Node Equipment
      2. Fibre Segmentation
    6. HFC Cable
  2. An abridged version of updated Table 6b provided in i. above, which discloses on the public record the data provided for the following columns:
    1. Major Capital Item
    2. Sub-component Description
    3. Supplier Price Vintage
    4. Sales Tax
    5. Warehouse and Shipping Labour Factor (W&D)
    6. Engineering Labour Factor
    7. Capacity (Specify Units)
    8. Capacity Driver Description
    9. Average Working Fill Factor (AWFF); and
    10. AWFF Vintage.
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