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Telecom Order CRTC 2005-196
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Ottawa, 20 May 2005 |
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Bell Canada
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Reference: Tariff Notice 828
(National Services Tariff) |
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Customer specific arrangement
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1. |
The Commission received an application by
Bell Canada on 7 October 2004, requesting approval of Tariff
Notice 828 (TN 828), under National Services Tariff item 720.78, related
to services provided under Customer Specific Arrangement (CSA) contract
number P3-58. This filing replaced Tariff Notice 764 (TN 764), which
had been filed pursuant to Regulatory safeguards with respect to
incumbent affiliates, bundling by Bell Canada and related matters,
Telecom Decision CRTC 2002-76,
12 December 2002. |
2. |
The CSA filed under TN 828 is a Type 2 CSA
consisting of the following General Tariff services: Digital Network and
Megalink; and the forborne services: Long Distance and Toll-free and
Equipment Maintenance. The minimum contract period for this CSA is
three years. |
3. |
On 8 December 2004, MTS Allstream Inc. (MTS
Allstream) filed comments with respect to Bell Canada Tariff Notices 817
to 843 inclusive and requested, among other things, that the Commission
deny these Tariff Notices. |
4. |
MTS Allstream submitted that Bell Canada's
Tariff Notices related to arrangements (or renegotiated versions
thereof) that were subject to a pending application, filed by
Allstream Corp.1 (Allstream) and Call-Net Enterprises Inc. (Call-Net) on
23 January 2004. MTS Allstream submitted that, absent a ruling on the
Part VII application that sought, among other things, denial of the
backlog of the Bell Nexxia Inc.'s (Bell Nexxia's) Type 2 CSAs, these
Tariff Notices should not be approved. |
5. |
MTS Allstream submitted that many of the
proposed rates, and terms and conditions, were either inconsistent with
the Commission's criteria for just and reasonable rates, or were
otherwise unjustly discriminatory or granted Bell Canada an undue
preference. |
6. |
MTS Allstream noted that Bell Canada's
appeal of Review of Bell Canada's customer-specific arrangements
filed pursuant to Telecom Decision 2002-76,
Telecom Decision CRTC 2003-63,
23 September 2003 (Decision 2003-63)
was dismissed by the Federal Court of Appeal, and the stay previously
granted by the Court was lifted. MTS Allstream submitted that, despite
these developments, Bell Canada had not disclosed the full rates,
terms and conditions of a large number of the Bell Nexxia CSAs
on the public record, contrary to the requirements of Decision 2003-63.
MTS Allstream claimed that this allowed Bell Canada to continue
to conceal the details of these arrangements until it had renegotiated
them to the company's satisfaction. |
7. |
MTS Allstream submitted that allowing
Bell Canada to renegotiate such arrangements while they were subject to
the Commission's consideration prevented a new supplier from competing
for the customer's business. |
8. |
With respect to TN 828, MTS Allstream
submitted that Bell Canada had relied on the imputation test filed with
TN 764, rather than filing a new imputation test. |
9. |
In reply on 20 December 2004, Bell Canada
stated that a revised imputation test was filed at the request of the
Commission on 15 November 2004. |
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Commission's analysis and determinations
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10. |
The Commission notes that in Part VII
application by Allstream Corp. and Call-Net Enterprises Inc. regarding
Bell Canada Type 2 CSAs, Telecom Decision CRTC 2005-22,
7 April 2005 (Decision 2005-22),
it denied the Part VII application filed by Allstream and Call-Net
on the basis that a blanket denial of all the Bell Nexxia CSAs
would not be appropriate, and that each CSA should be considered individually
to determine whether Bell Canada had complied with the requirements
set out in Decision 2003-63.
In Decision 2005-22,
the Commission also noted that since the dismissal of its appeal of
Decision 2003-63
by the Federal Court of Appeal, Bell Canada had refiled proposed
tariff pages for the Bell Nexxia CSAs under new TN numbers, consistent
with the tariff requirements set out in Decision 2003-63. |
11. |
The Commission notes that there was no change
with respect to the services contemplated in this tariff application.
The Commission is satisfied that the services, rates, and terms and
conditions provided are properly identified in the proposed tariff
pages and meet the requirements specified in Decision 2003-63.
The Commission is also of the view that MTS Allstream's concerns
with respect to the level of public disclosure of the rates, and terms
and conditions applicable to TN 828 were adequately addressed. |
12. |
With respect to MTS Allstream's comment
that Bell Canada had not filed a new imputation test for TN 828, the
Commission notes that Bell Canada filed a revised imputation
test on 15 November 2004 that reflected the costing methodologies
set out in Decision 2003-63.
The Commission has reviewed the revised imputation test results and
is satisfied that the costing directives specified in Decision 2003-63
have been applied and the Commission is satisfied that this CSA
passes the imputation test. |
13. |
In Bell Canada - Ex parte application,
Telecom Order CRTC 2004-428, 17
December 2004 (Order 2004-428),
the Commission identified safeguards regarding the automatic renewal
of a CSA and/or services within a CSA that should be included in tariff
pages. Consistent with Order 2004-428,
the Commission considers that such safeguards should also be reflected
in the tariff pages associated with TN 828. |
14. |
In light of the above, the Commission
approves on a final basis the application by Bell Canada, with the
tariff pages amended to indicate that: |
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- at least 60 days before contract expiry, Bell Canada is to notify
the customer of the CSA either on its monthly bill or by letter that
the contract or services will be automatically renewed unless the
customer indicates otherwise; and
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- within 35 days following automatic renewal, Bell Canada is to
notify the customer of the CSA either on its monthly bill or by letter
that the contract has been renewed and that the customer may terminate
the contract without penalty within 30 days of the date of this
notice.
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15. |
Bell Canada is to issue tariff pages
forthwith. |
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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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