News release

February 16, 2006

CRTC directs funds in deferral accounts to expand rural broadband and services for Canadians with disabilities

OTTAWA-GATINEAU — The Canadian Radio-television and Telecommunications Commission (CRTC) today announced how funds from the deferral accounts of incumbent local exchange carriers (ILECs)1 will be used.

Up to $650 million from the accounts will support initiatives to expand broadband services to rural and remote communities and improve accessibility of telecommunications services for persons with disabilities. The amount will be finalized shortly after the ILECs file updated deferral account schedules, which are due by May 15, 2006.

“Canada is a world leader in broadband access and today’s decision builds on this enviable record. It serves to ensure that reliable, affordable, high-quality telecommunications services are extended to Canadians who would not otherwise be served, and is in the broadest interest of all consumers” said CRTC Chairman, Charles Dalfen.

ILECs will be required to consult with provincial governments on proposed broadband initiatives prior to submitting their proposals to the Commission. This will ensure that their plans consider existing government initiatives and priorities.

They will also be required to consult and work with the appropriate advocacy organizations for persons with disabilities.

Detailed proposals relating to these initiatives must be submitted by the ILECs with the Commission by June 30, 2006.

In coming to its decision, the Commission held extensive consultations with the public and members of the industry on the best way to make use of the funds. It received over 50 proposals from 16 parties.

In 2002, in order to avoid an adverse impact on local competition, the Commission required each ILEC to create a deferral account in conjunction with the price cap regime. ILECs were requested to place into those accounts amounts equal to the revenue reductions that would otherwise have resulted from an application of the price cap formula.

Additional information on this decision and the deferral account is available in the backgrounder that follows this news release. The decision (Telecom Decision CRTC 2006-9) in full is available on-line at www.crtc.gc.ca.

The CRTC

The CRTC is an independent, public authority which was established to sustain and promote Canadian culture and achieve key social and economic objectives by regulating and supervising Canadian broadcasting and telecommunications in the public interest. As an expert tribunal it takes into account the wants and needs of Canadian citizens, industries and various interest groups. The CRTC is governed by the Broadcasting Act and the Telecommunications Act and reports to Parliament through the Minister of Canadian Heritage.

Reference documents:  Telecom Public Notice 2004-1 [.htm]
Telecom Decision CRTC 2006-9 [.htm][.pdf]
Information - Backgrounder on the Deferral Accounts Decision

Footnote

1 Bell Canada; MTS Allstream Inc.; Saskatchewan Telecommunications; TELUS Communications Inc.; Aliant Telecom Inc.; Société en commandite Télébec; and the former TELUS Communications (Québec) Inc., now TELUS Communications Inc.

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Media Relations:
   MediaRelations@crtc.gc.ca, Tel: (819) 997-9403, Fax: (819) 997-4245

General Inquiries:
   Tel: (819) 997-0313, TDD: (819) 994-0423, Fax: (819) 994-0218
   Toll-free # 1-877-249-2782
   TDD - Toll-free # 1-877-909-2782

Copies of today ’s documents are available through our Internet site (http://www.crtc.gc.ca) or by contacting the documentation centre of any CRTC office. These documents are available in alternative format upon request.

Date Modified: 2006-02-16

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