News release

December 12^th, 2002

CRTC STRENGTHENS TELECOM SAFEGUARDS
TO PERMIT FAIR COMPETITION

OTTAWA-GATINEAU - The Canadian Radio-television and Telecommunications Commission (CRTC) today issued a decision that strengthens the safeguards to permit fair and sustainable competition. These safeguards apply when a telephone company's affiliate provides services in the telephone company's operating territory that, if provided by the telephone company, would require CRTC approval of tariffs setting out their rates, terms and conditions.

In today's decision, the CRTC has modified the affiliate rule, which applies to reseller affiliates of a telephone company. When such an affiliate wishes to resell a tariffed service of the telephone company, the telephone company will be required to obtain Commission approval of a tariff setting out the rates, terms and conditions under which the service can be resold by the affiliate.

In addition, in a follow up proceeding, the Commission has invited comments on its preliminary view that a telephone company's facilities-based affiliate should be required to obtain CRTC tariff approval before providing services that would require such approval if provided by the telephone company. Until the Commission makes its determination on this question, these affiliates will be required to obtain Commission tariff approval if they wish to resell the telephone company's tariffed services.

To ensure that service to Internet service providers is not interrupted, these measures will not apply to the affiliates' high-speed Internet wholesale services.

"This decision underlines the CRTC's commitment to encourage fair and sustainable competition," said Charles Dalfen, Chairman of the CRTC, "and the measures adopted today are necessary for that purpose."

In today's decision, the CRTC also addresses certain practices by Bell Canada and its affiliate, Bell Nexxia. The Commission has found that Bell Canada breached the CRTC's bundling rules when Bell Canada provided certain services through Bell Nexxia, without obtaining Commission approval. The CRTC has directed Bell Canada to file tariffs in respect of those arrangements and to provide the Commission with additional information about other bundling arrangements involving Bell Canada and Bell Nexxia or other Bell Canada affiliates. This will allow the CRTC to determine if additional measures may be required.

The Canadian Radio-television and Telecommunications Commission is an independent public authority that regulates and supervises broadcasting and telecommunications in Canada.

Reference document: Telecom Decision CRTC 2002-76

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Media Inquiries:
   Denis Carmel, Tel: (819) 997-9403, eMail: denis.carmel@crtc.gc.ca

General Inquiries:
   Tel: (819) 997-0313, TDD: (819) 994-0423, Fax: (819) 994-0218
   Toll-free # 1-877-249-CRTC (2782), eMail: info@crtc.gc.ca
   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 public examination room of any CRTC office. These documents are available in alternative format upon request.

Date Modified: 2002-12-12

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