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Telecom Order CRTC 2005-387
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Ottawa, 24 November 2005 |
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TELUS Communications (Québec) Inc. fibre agreements with Vidéotron
Télécom ltée
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Reference: 8340-T69-200318891
and 8340-T69-200318909 |
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Introduction
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1. |
On 22 December 2003, TELUS Communications
(Québec) Inc., now known as TELUS Communications Inc. (TCI), filed two
applications with the Commission for approval of an agreement with
Vidéotron Télécom ltée (Vidéotron) related to a fibre swap (the Fibre
Swap Agreement) and an agreement with Vidéotron related to a long-term
lease of optical fibre facilities (the Optical Fibre Lease Agreement).
Both applications were filed for approval pursuant to section 29 of the
Telecommunications Act (the Act). |
2. |
The Fibre Swap Agreement involves intra and
interexchange fibres provided by TCI between various cities throughout
Quebec. The agreement stipulates that the value of the fibres provided
is deemed to be equivalent and that no financial settlements will be
paid by either party. The agreement also stipulates that the arrangement
will be in effect for a 20-year period and will be automatically renewed
for additional 5-year terms, unless otherwise renegotiated. |
3. |
TCI indicated that the Optical Fibre Lease
Agreement will be in effect for a 20-year period. |
4. |
The Fibre Swap Agreement, effective 23
April 2001, was filed in confidence without an abridged version for the
public record. On 13 December 2004, TCI filed an abridged version of the
Fibre Swap Agreement for the public record. |
5. |
The Optical Fibre Lease Agreement,
effective 8 November 2001, was filed in confidence without an abridged
version for the public record. |
6. |
The Commission received no comments with
respect to these applications. |
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Regulatory Framework
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7. |
Subsection 25(1) of the Act reads as
follows: |
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No Canadian carrier shall provide a telecommunications service
except in accordance with a tariff filed with and approved by the
Commission that specifies the rate or the maximum or minimum rate, or
both, to be charged for the service.
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8. |
Subsection 27(2) of the Act provides: |
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No Canadian carrier shall, in relation to the provision of a
telecommunications service or the charging of a rate for it, unjustly
discriminate or give an undue or unreasonable preference toward any
person, including itself, or subject any person to an undue or
unreasonable disadvantage.
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9. |
Section 29 of the Act provides: |
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No Canadian carrier shall, without the prior approval of the
Commission, give effect to any agreement or arrangement, whether oral
or written, with another telecommunications common carrier respecting
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(a) the interchange of telecommunications by means of their
telecommunications facilities;
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(b) the management or operation of either or both of their
facilities or any other facilities with which either or both are
connected; or
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(c) the apportionment of rates or revenues between the carriers.
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Commission's analysis and determinations
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10. |
In TELUS Communications Inc. - Fibre
Use and Management Agreement, Telecom Decision CRTC 2003-4,
31 January 2003 (Decision 2003-4),
the Commission found that an agreement between TCI and Axia SuperNet
Ltd. with respect to the provision of interexchange dark fibre in
Alberta did not fall within section 29 of the Act, because its essence
was the provision of a telecommunications service and did not primarily
address matters falling within section 29, namely the interchange
of telecommunications by means of telecommunications facilities, the
management or operation of facilities, or the apportionment of rates
or revenues between carriers. Accordingly, the Commission directed
TCI to issue tariff pages for the service. |
11. |
The Commission notes that both the Fibre
Swap Agreement and the Optical Fibre Lease Agreement involve intra
and interexchange optical fibre. The Commission further notes that
TCI has a General tariff for both intra and inter-exchange optical
fibre, which was approved in TELUS Communications Inc. - General
tariff for intra-exchange and inter-exchange optical fibre service
in Quebec, Telecom Order CRTC 2004-438,
23 December 2004. |
12. |
Consistent with the Commission's finding
in Decision 2003-4,
the Commission considers that the Fibre Swap Agreement and the Optical
Fibre Lease Agreement do not come within section 29 of the Act because
their essence is the provision of a telecommunications service, namely
optical fibre, rather than primarily addressing matters falling within
section 29. Accordingly, the Commission considers that, pursuant to
section 25 of the Act, TCI must apply approved tariff rates with respect
to the fibres provided to Vidéotron, rather than dispose of the applications
pursuant to section 29 of the Act. |
13. |
In light of the foregoing, the Commission: |
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- denies the Fibre Swap Agreement and the Dark Fibre Lease
Agreement; and
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- directs TCI to apply, within 60 days of this Order, the
rates, terms and conditions approved under TCI General Tariff sections
2.07, Intra-exchange Optical Fibre Service, and 3.09, Inter-exchange
Optical Fibre Service, to the provision of the optical fibre to
Vidéotron.
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Secretary General |
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This document is available in alternative
format upon request, and may also be examined in PDF
format or in HTML at the following Internet site: http://www.crtc.gc.ca
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