Telecom Decision CRTC

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Telecom Decision CRTC 2018-418 PDF version Ottawa, 6 November 2018 Public record: 8640-B2-201805524 Bell Canada Application for forbearance from the regulation of residential local exchange services The Commission approves Bell Canada s request for forbearance from the regulation of residential local exchange services in 34 Bell Aliant exchanges in Newfoundland and Labrador, five Télébec, Société en commandite exchanges in Quebec, and two NorthernTel, Limited Partnership exchanges in Ontario. Background 1. The Commission set out the details of the framework for forbearance from the regulation of local exchange services (local forbearance), including the local forbearance criteria, in Telecom Decision 2006-15. In Telecom Regulatory Policy 2009-379, the Commission applied that framework, with modifications, to the small incumbent local exchange carriers (ILECs). 2. In Telecom Regulatory Policy 2018-213, the Commission determined that several regulated residential high-cost serving area exchanges meet the competitor presence test, which is one of the local forbearance criteria. These exchanges are therefore eligible for local forbearance, subject to the other criteria being met. 3. Having determined that the competitor presence test was met, the Commission directed certain ILECs to file a streamlined forbearance application with respect to the local exchange services they offer in the exchanges listed in the Appendix to Telecom Regulatory Policy 2018-213. Application 4. In response to its direction, the Commission received an application from Bell Canada, on behalf of itself (its Bell Aliant division), Télébec, Société en commandite (Télébec), and NorthernTel, Limited Partnership (NorthernTel), dated 26 July 2018, in which the company requested forbearance from the regulation of residential local exchange services 1 in 34 Bell Aliant exchanges in Newfoundland and Labrador, five Télébec exchanges in Quebec, and two NorthernTel exchanges in Ontario. A list of 1 In this decision, residential local exchange services refers to local exchange services used by residential customers to access the public switched telephone network and any associated service charges, features, and ancillary services.

these exchanges is set out in Appendix 1 to this decision. Bell Canada requested that forbearance be implemented on 1 January 2019. 5. The Commission received no interventions with respect to Bell Canada s application. Commission s analysis and determinations 6. Pursuant to the Commission s requirements in Telecom Decision 2006-15, Bell Canada, on behalf of itself, Télébec, and NorthernTel, provided (i) evidence to support its forbearance request, including competitor quality of service (Q of S) results for the six months preceding its application, and (ii) a draft communications plan for the Commission s approval. 7. The Commission has assessed Bell Canada s application by examining the criteria set out below. With respect to Bell Canada and Télébec, the criteria are based on the local forbearance test set out in Telecom Decision 2006-15. With respect to NorthernTel, the criteria are based on the local forbearance test originally set out in Telecom Decision 2006-15 and applied to the small ILECs, with modifications, in Telecom Regulatory Policy 2009-379. Product market 8. Bell Canada is seeking forbearance from the regulation of 16 tariffed residential local exchange services in Bell Aliant s territory, 20 tariffed residential local exchange services in Télébec s territory, and 19 tariffed residential local exchange services in NorthernTel s territory. A list of these services is set out in Appendix 2 to this decision. In Telecom Decision 2005-35, the Commission found that services similar to these services are eligible to be considered for forbearance. Competitor Q of S results 9. Bell Canada, on behalf of itself and Télébec, submitted competitor Q of S results for the period of October 2017 to March 2018. The Commission has reviewed these results and finds that Bell Canada has demonstrated that during this six-month period, Bell Canada and Télébec i) met, on average, the Q of S standards for each indicator set out in Appendix B of Telecom Decision 2006-15, as defined in Telecom Decision 2005-20, with respect to the services provided to competitors in their territories; and ii) did not consistently provide any of those competitors with services that were below those Q of S standards. 10. Accordingly, Bell Canada and Télébec meet the competitor Q of S criterion for this period.

11. Bell Canada attested that NorthernTel received no Q of S complaints from competitors in the six months prior to the date of this application for forbearance. 2 As well, the Commission has received no comments with respect to NorthernTel s competitor Q of S results for that period. 12. Accordingly, NorthernTel s competitor Q of S results warrant forbearance from the regulation of residential local exchange services in the NorthernTel exchanges listed in Appendix 1 to this decision. Communications plan 13. The Commission has reviewed the proposed communications plan mentioned in paragraph 6 above and is satisfied that it meets the information requirements set out in Telecom Decision 2006-15. However, the following changes must be made to the communications plan: i) modify the name and contact information for the Commissioner for Complaints for Telecommunications Services to the Commission for Complaints for Telecom-television Services (CCTS), include the CCTS s TTY (teletypewriter) number, and remove the email address complaints@ccts-cprst.ca; ii) modify the contact information for the Canadian Radio-television and Telecommunications Commission to refer to TTY rather than TDD and change the mailing address to Ottawa, Ontario K1A 0N2 ; and iii) update, as appropriate, the contact information for the other organizations listed in the plan. 14. The Commission approves the proposed communications plan and directs Bell Canada, Télébec, and NorthernTel to provide the resulting communications materials to their customers, in both official languages where appropriate. Other matter: Implementation date 15. Bell Canada requested that forbearance be implemented on 1 January 2019 in order to allow time for the implementation of the communications plan. 16. Forbearance determinations regarding local exchange services take effect as of the publication date of the relevant Commission decision, with implementation of the communications plan to follow. The Commission finds that Bell Canada has not sufficiently justified changing this practice. Consequently, forbearance takes effect as of the date of this decision. 2 In Telecom Regulatory Policy 2009-379, the Commission stated that, if applicable, a small ILEC could submit an attestation that it had received no complaints from competitors in the six months prior to the date of the forbearance application, or since the implementation of local competition if less than six months had passed.

Conclusion 17. Bell Canada s application regarding the 34 Bell Aliant exchanges in Newfoundland and Labrador and the five Télébec exchanges in Quebec meets all the local forbearance criteria set out in Telecom Decision 2006-15. Bell Canada s application regarding the two NorthernTel exchanges in Ontario meets all the local forbearance criteria set out in Telecom Decision 2006-15 and modified by Telecom Regulatory Policy 2009-379 for small ILECs. 18. Pursuant to subsection 34(1) of the Telecommunications Act (the Act), the Commission finds as a question of fact that to refrain from exercising its powers and performing its duties, to the extent specified in Telecom Decision 2006-15, in relation to the provision, by Bell Canada, Télébec, and NorthernTel in these exchanges, of the residential local exchange services listed in Appendix 2 to this decision and of future local exchange services (as defined in Telecom Public Notice 2005-2 and as they pertain to residential customers only) would be consistent with the Canadian telecommunications policy objectives set out in section 7 of the Act. 19. Pursuant to subsection 34(2) of the Act, the Commission finds as a question of fact that these residential local exchange services are subject to a level of competition in these exchanges sufficient to protect the interests of users of these services. 20. Pursuant to subsection 34(3) of the Act, the Commission finds as a question of fact that to refrain from exercising its powers and performing its duties, to the extent specified in Telecom Decision 2006-15, in relation to the provision by Bell Canada, Télébec, and NorthernTel of these residential local exchange services in these exchanges would be unlikely to unduly impair the continuance of a competitive market for these services. 21. In light of the above, the Commission approves Bell Canada s application for forbearance from the regulation of the local exchange services listed in Appendix 2 to this decision and future local exchange services (as defined in Telecom Public Notice 2005-2), as they pertain to residential customers only, in the exchanges listed in Appendix 1 to this decision, subject to the powers and duties that the Commission has retained as set out in Telecom Decision 2006-15. This determination takes effect as of the date of this decision. The Commission directs Bell Canada, Télébec, and NorthernTel to issue revised tariff pages 3 within 30 days of the date of this decision. Secretary General 3 Revised tariff pages can be submitted to the Commission without a description page or a request for approval; a tariff application is not required.

Related documents Phase-out of the local service subsidy regime, Telecom Regulatory Policy CRTC 2018-213, 26 June 2018 Framework for forbearance from regulation of retail local exchange services in the serving territories of the small incumbent local exchange carriers, Telecom Regulatory Policy CRTC 2009-379, 23 June 2009 Forbearance from the regulation of retail local exchange services, Telecom Decision CRTC 2006-15, 6 April 2006; as amended by Order in Council P.C. 2007-532, 4 April 2007 List of services within the scope of the proceeding on forbearance from the regulation of local exchange services, Telecom Decision CRTC 2005-35, 15 June 2005; as amended by Telecom Decision CRTC 2005-35-1, 14 July 2005 Forbearance from regulation of local exchange services, Telecom Public Notice CRTC 2005-2, 28 April 2005 Finalization of quality of service rate rebate plan for competitors, Telecom Decision CRTC 2005-20, 31 March 2005

Appendix 1 to Telecom Decision CRTC 2018-418 Exchanges that meet all the local forbearance criteria set out in Telecom Decision 2006-15 Company Province Exchange Bell Canada NL Arnold s Cove Bell Canada NL Baie Verte Bell Canada NL Bellevue Bell Canada NL Birchy Bay Bell Canada NL Boyd s Cove Bell Canada NL Catalina Bell Canada NL Centreville Bell Canada NL Chance Cove Bell Canada NL Chapel Arm Bell Canada NL Charlottetown (Bonavista Bay) Bell Canada NL Clarke s Head Bell Canada NL Come By Chance Bell Canada NL Comfort Cove-Newstead Bell Canada NL Eastport Bell Canada NL Gambo Bell Canada NL Glenwood Bell Canada NL Glovertown Bell Canada NL Harbour Main Bell Canada NL Hare Bay Bell Canada NL Hickman s Harbour Bell Canada NL Hillgrade Bell Canada NL Horwood Bell Canada NL King s Cove Bell Canada NL Ladle Cove Bell Canada NL Moreton s Harbour Bell Canada NL Musgravetown Bell Canada NL Newman s Cove Bell Canada NL Plate Cove Bell Canada NL Pouch Cove

ii Company Province Exchange Bell Canada NL Robert s Arm Bell Canada NL South Brook Bell Canada NL Summerford Bell Canada NL Triton Bell Canada NL Upper Island Cove NorthernTel ON Opasatika NorthernTel ON Kirkland Lake Télébec QC Cap-aux-Meules Télébec QC Grande-Entrée Télébec QC Havre-Aubert Télébec QC Havre-aux-Maisons Télébec QC Sainte-Angèle-de-Laval

Appendix 2 to Telecom Decision CRTC 2018-418 Local exchange services eligible for forbearance from regulation (for residential customers only) Company Tariff Item List of services Bell Canada 21491 125.3 Extra Listings Bell Canada 21491 125.4 Non-Listed, Non-Published Service Bell Canada 21491 125.5 Contract Period for Chargeable Extra Listings Bell Canada 21491 125.6 Directories and Listings Rates and Charges Bell Canada 21491 205.1 Residence Single Line Access Service Bell Canada 21491 205.3 Residence Multi-line Access Service Bell Canada 21491 205.5 Residence Party Line Access Service Bell Canada 21491 257 Express Service Bell Canada 21491 280 Fibre to the Home (FTTH) Bell Canada 21491 300 Residence Single-Line Access Bundles Bell Canada 21491 300.1 Enhanced Consumer Access Bell Canada 21491 300.2 Atlantic Access Bundle Bell Canada 21491 300.3 Canada/U.S. Access Bundle Bell Canada 21491 304 Enhanced Local Calling (Calling Features) Bell Canada 21491 312 900 Call Denial/Blocking Service Bell Canada 21491 348 Hospital Patient Telephone Service NorthernTel 25510 N100 1 to 5 Rate schedules for primary exchange (local) services NorthernTel 25510 N100 6 Telephone number services NorthernTel 25510 N100 7 Calling number blocking NorthernTel 25510 N140 4 Extra listings NorthernTel 25510 N280 all Short-term Service NorthernTel 25510 N300 all Service on Stationary Ships and Trains NorthernTel 25510 N330 all Suspension of Service Residential Primary Service NorthernTel 25510 N400 all Exchange Radio Telephone Service NorthernTel 25510 N490 2 Stop Hunt Feature NorthernTel 25510 N490 4 Toll Restriction Service NorthernTel 25510 N490 5 Touch Tone NorthernTel 25510 N490 7 Telephone Station Equipment

ii Company Tariff Item List of services NorthernTel 25510 N490 8 Call Management Services NorthernTel 25510 N490 9 Call Blocking Service NorthernTel 25510 N490 10 Integrated Voice Messaging Service (IVMS) NorthernTel 25510 N490 16 Residential Call Management Bundle NorthernTel 25510 N490 17 Home Phone + Internet 8 Mbps Bundle NorthernTel 25510 N490 18 Fibre to the Home (FTTH) NorthernTel 25510 N490 19 Home Phone Plus Bundle Télébec 25140 1.7 Telephone Set Loss Charge (Residence) Télébec 25140 2.1.2.2 c Basic Service for Students Télébec 25140 2.1.7.1 Basic Services and Regional Service Télébec 25140 2.1.7.4 Rate Adjustment for Multi-Party Access Line Customers Télébec 25140 2.1.8 Basic Services Provided Outside the Company s Serving Area Télébec 25140 2.5 Telephones Available Only for Two-Party Line or Multi-Party Access Service Télébec 25140 2.15 Service to Immobilized Ships, Trailers and Trains Télébec 25140 2.17 Basic Residential Bundle Optimum Télébec 25140 2.19 Enhanced Telephone Service Télébec 25140 2.23.2 Telephone Number Reservation Service Télébec 25140 2.27.6 Extra Listings Télébec 25140 3.1 Intra-Exchange Distance Charges Télébec 25140 3.3.17 Toll Restriction Service Télébec 25140 3.3.18 Smart Touch Services Télébec 25140 3.3.19 Call Display Blocking Per Line, Per Call Télébec 25140 3.3.20 Integrated Vocal Messaging Service Télébec 25140 5.2.6.5 Call Blocking Service 900 Service Télébec 25140 8.4 Internet Call Display Télébec 25140 8.7.3 Integrated Services Digital Network (ISDN) 2B+D Télébec Télébec 25140 11.1 Services for Handicapped Persons