Telecom Public Notice
|
Ottawa, 1 March 1999
|
Telecom Public Notice CRTC 99-6
|
REVIEW OF CONTRIBUTION COLLECTION MECHANISM AND RELATED ISSUES
|
File No.: 8695-C12-06/99
|
SUMMARY
|
In this Public Notice, the Commission is initiating a proceeding to review the current
contribution collection mechanism and to examine alternative collection mechanisms. The
scope of this proceeding is set out in Part II of this Public Notice and the procedures
are set out in Part III.
|
I INTRODUCTION
|
1.In Competition in the Provision of Public Long Distance Voice Telephone Services and
Related Resale and Sharing Issues, Telecom Decision CRTC 92-12, 12 June 1992, the Commission
established a mechanism, applicable in the serving territories of BC TEL, Bell Canada,
Island Telecom Inc., Maritime Tel & Tel Limited, NBTel Inc. and NewTel Communications
Inc., whereby competitors in the long distance market must contribute towards the
subsidization of residence local services. Since that time, the Commission has made,
through various decisions, a number of changes to the contribution regime. In addition,
the Commission has extended the regime to the territories of other federally regulated
carriers such as MTS Communications Inc., TELUS Communications Inc. and the independent
telephone companies. The Commission has determined, in principle, that a similar
contribution regime should apply to the territories of Northwestel Inc. and O.N. Tel.
|
2.On 17 September 1998, AT&T Canada Long Distance Services Company, Call-Net
Enterprises Inc., ACC TelEnterprises Ltd. and London Telecom Network Inc. (AT&T et
al.) filed an application requesting that (1) the Commission find that a revenue-based
contribution collection mechanism is in the public interest and should be implemented
effective 1 January 2000; and (2) the Commission initiate a proceeding no later than
November 1998 in order to implement this mechanism.
|
3.In the application, AT&T et al. stated that, among other things,
telecommunications networks are no longer easily separable into intra-exchange and
inter-exchange segments, the use of packet-switched network technology has grown, and data
and voice traffic over Internet protocol networks is increasing. AT&T et al. claimed
that the current contribution collection mechanism is no longer efficient or sustainable
in a converged network environment where packets, not minutes, are the main output.
AT&T et al. requested that the Commission adopt and implement a forward-looking
revenue-based mechanism. AT&T et al. stated that such a mechanism would limit market
distortions, stimulate service innovation and be sufficiently flexible to respond to
ongoing changes in the telecommunications industry.
|
4.By letter dated 21 December 1998, the Commission denied AT&T et al.'s
17 September 1998 application. In light of the significant policy implications of
approving this application, the Commission was of the view that it would be inappropriate
and unreasonable, based on AT&T et al.'s application alone, to approve a revenue-based
collection mechanism effective 1 January 2000 and to initiate an implementation proceeding
immediately.
|
5.In its letter of 21 December 1998, the Commission stated that it would be appropriate
to review aspects of the current contribution regime in greater detail to determine if
changes are required. Accordingly, the Commission stated that it would initiate two
proceedings in early 1999 to (1) determine what changes, if any, should be made to the
current contribution collection mechanism, and (2) review the frozen contribution
rate policy.
|
6.On 2 February 1999, the Commission issued Proceeding to Review Frozen Contribution
Rate Policy, Telecom Public Notice CRTC 99-5
(PN 99-5). The proceeding initiated by PN 99-5 will focus on, among other things, whether
the policy to freeze contribution rates established in Local Competition, Telecom Decision
CRTC 97-8, 1 May 1997, should be lifted
during the price cap period.
|
7.In this Public Notice, the Commission is initiating a proceeding to review the
contribution collection mechanism and to examine alternative collection mechanisms. The
scope of this proceeding is set out in Part II of this Public Notice.
|
8.The Commission notes that there are several issues in the proceeding initiated by
Service to High-Cost Serving Areas, Telecom Public Notice CRTC 97-42, 18 December 1997 (PN 97-42),
that may impact the proposals of parties. As noted in Part III of this Public Notice,
parties will be provided an opportunity to revise their submissions, if necessary, in
response to the determinations made in the proceeding initiated by PN 97-42.
|
9.Parties that are directly affected by the current contribution regime, as well as
those parties that may be affected by either a revised or new regime, are encouraged to
file submissions.
|
II SCOPE OF PROCEEDING
|
10.Parties' views are sought on whether reform or replacement of the current
contribution collection mechanism is required and, if so, what changes should be made. In
particular, the Commission seeks parties' views on the impacts that technological, market
and other developments may have on the requirement for, and the ability to identify,
switched long distance minute information for contribution purposes.
|
11.Where parties submit that the existing contribution collection mechanism should be
replaced, the Commission seeks their proposals for an appropriate alternative mechanism
(such as revenue-based, end-user or other mechanism). In their proposals, parties should
address the following issues:
|
(i) what are the most appropriate criteria for the development of a contribution
mechanism (e.g., efficiency of administration, sustainability, competitive equity) and how
does the proposed mechanism meet these criteria;
|
(ii) how should the total subsidy requirement to be recovered from any new contribution
mechanism, be defined and calculated;
|
(iii) what types of services (e.g., long distance, local) should be subject to
contribution, what criteria should be used to identify those services, and on what basis
should those services contribute (uniform or otherwise) towards the subsidy requirement;
|
(iv) what types of service providers should be required to contribute towards the
subsidy requirement and what criteria should be used for determining liability;
|
(v) whether a uniform collection charge/rate should be applied nationally or whether
the charge/rate should vary by each incumbent telephone company's serving territory or on
some other basis and what an appropriate charge/rate should be;
|
(vi) what impact would there be, if any, on the applicable regulatory regime (i.e.,
price caps or rate of return) of the incumbent telephone companies subject to federal
regulation;
|
(vii) what impact would there be, if any, on the role of the Central Fund Administrator
or other fund administrator, including the remittance of contribution, distribution of
funds and any associated administrative procedures; and
|
(viii) any other issues relevant to this proceeding.
|
III PROCEDURE
|
12.Parties wishing to participate fully in this proceeding must notify the Commission
of their intention to do so by writing to Secretary General, CRTC, Ottawa, Ontario, K1A
0N2, fax: 819-953-0795, by 30 April 1999. Parties are to indicate in the notice their
Internet email address, if available. If parties do not have access to the Internet, they
are to indicate in their notice whether they wish to receive disk versions of hard copy
filings. The Commission will issue a complete list of parties and their mailing addresses
(including Internet email addresses if available), identifying those parties who wish to
receive disk versions.
|
13.Parties may file submissions regarding the issues identified in this Public Notice,
serving copies on all other parties, by 7 June 1999.
|
14.Parties may address interrogatories to any party that has filed a submission. Any
such interrogatories must be filed with the Commission and served on the party or parties
in question by 12 July 1999.
|
15.Parties may file updates to their submissions, in response to the determinations
made in the proceeding initiated by PN 97-42, with the Commission, serving copies on all
parties, by 16 August 1999.
|
16.Responses to interrogatories addressed pursuant to paragraph 14 are to be filed with
the Commission, serving copies on all parties, by 16 August 1999.
|
17.Requests by parties for further responses to their interrogatories, specifying in
each case why a further response is both relevant and necessary, and requests for public
disclosure of information for which confidentiality has been claimed, setting out the
reasons for disclosure, must be filed with the Commission and served on the party or
parties in question by 23 August 1999.
|
18.Written responses to requests for further responses to interrogatories and for
public disclosure must be filed with the Commission and served on the party or parties
making the request by 30 August 1999.
|
19.The Commission will issue a determination with respect to requests for disclosure
and for further responses as soon as possible, and intends to direct that any information
to be provided pursuant to that determination be filed with the Commission and served on
all parties to the proceeding by 22 September 1999.
|
20.Parties may address supplemental interrogatories to any party that has filed
responses to interrogatories addressed pursuant to paragraph 14 or an update to its
submission pursuant to paragraph 15. Any such interrogatories must be filed with the
Commission and served on the party or parties in question by 8 October 1999.
|
21.Responses to supplemental interrogatories addressed pursuant to paragraph 20 are to
be filed with the Commission, serving copies on all parties, by 8 November 1999.
|
22.Requests by parties for further responses to their supplemental interrogatories,
specifying in each case why a further response is both relevant and necessary, and
requests for public disclosure of information for which confidentiality has been claimed,
setting out the reasons for disclosure, must be filed with the Commission and served on
the party or parties in question by 15 November 1999.
|
23.Written responses to requests for further responses to supplemental interrogatories
and for public disclosure must be filed with the Commission and served on the party or
parties making the request by 22 November 1999.
|
24.The Commission will issue a determination with respect to requests for disclosure
and for further responses as soon as possible, and intends to direct that any information
to be provided pursuant to that determination be filed with the Commission and served on
all parties to the proceeding by 15 December 1999.
|
25.All parties may file comments, serving copies on all other parties, by 28 January
2000.
|
26.All parties may file replies to any comments, serving copies on all parties who
filed comments, by 28 February 2000.
|
27.The record of this proceeding may be examined, or will be made available promptly
upon request, at the CRTC offices at the following addresses:
|
Central Building
Les Terrasses de la Chaudière 1 Promenade du Portage
Room G-5
Hull, Quebec
|
Bank of Commerce Building
1809 Barrington Street
Suite 1007
Halifax, Nova Scotia
|
Place Montréal Trust
1800 McGill College Avenue
Suite 1920
Montréal, Quebec
|
55 St. Clair Avenue East
Suite 624
Toronto, Ontario
|
275 Portage Avenue
Suite 1810
Winnipeg, Manitoba
|
530-580 Hornby Street
Vancouver, British Columbia
|
28.Where a document is to be filed or served by a specific date, the document must be
actually received, not merely sent, by that date.
|
29.In addition to hard copy filings, parties are encouraged to file with the Commission
electronic versions of their submissions in accordance with the Commission's Interim
Telecom Guidelines for the Handling of Machine-Readable Files, dated 30 November
1995. The Commission's Internet email address for electronically filed documents is
public.telecom@crtc. gc.ca. Electronically filed documents can be accessed at the
Commission's Internet site at http://www.crtc.gc.ca.
|
Secretary General
|
This document is available in alternative format upon request.
|
|