CRTC
ACCOMPLISHMENTS

2006-2007

For additional copies of the report, please contact:

Documentation Centre
Canadian Radio-television and
Telecommunications Commission (CRTC)
Les Terrasses de la Chaudière
Central Building
1 Promenade du Portage
Gatineau, Quebec

Mailing Address:
CRTC
Ottawa, Ontario
Canada
K1A 0N2

Telephone: 1 (819) 997-2429
                 1 (877) 249-2782 (toll-free)
                 TDD: 1 (877) 909-2782 (toll-free)

This publication is available electronically: www.crtc.gc.ca

This publication can be made available in alternative format upon request.

Ce document est également disponible en français.

ISBN: BC9-4/2007
Catalogue No.: 978-0-662-69753-4

Message from the Executive Director
Broadcasting & Telecommunications

The CRTC is pleased to present our Annual Report outlining our 2006-2007 principal accomplishments.

Through the leadership and dedication of CRTC staff and the results of in-depth consultations and feedback from our stakeholders, the CRTC began an aggressive program of streamlining our processes and procedures. These initiatives have begun to bear fruit as evidenced by our performance standards introduced during the most recent fiscal year.

These streamlining initiatives will continue into 2007-2008 and with the continued support of our stakeholders, dedicated staff and Commissioners, we look forward to meeting new challenges and opportunities in 2007-2008.

We invite you to review the 2006-2007 Accomplishments Report and observe the incredible pace of activity and innovation that the Broadcasting and Telecommunications industries are experiencing.

Len Katz

Broadcasting Accomplishments

The following highlights the Canadian Radio-television and Telecommunications Commission's (CRTC) key accomplishments in regulating and supervising the Canadian broadcasting industry in 2006-2007.

Major Proceedings

New commercial radio policies

The CRTC conducted a proceeding, including a public hearing beginning on 15 May 2006 in Gatineau, to review its commercial radio policies. On 15 December 2006, the CRTC announced the results of its comprehensive review: The measures are outlined in three documents designed to provide commercial radio stations with the flexibility they need to operate in an increasingly competitive environment for the delivery of audio programming: Commercial Radio Policy; Revised Policy concerning the issuance of calls for radio applications and a new process for applications to serve small markets; and Digital Radio Policy (Broadcasting Public Notices CRTC 2006-158, 2006-159 and 2006-160, respectively).

The Commercial radio policy sets out a new approach to Canadian content development (CCD) that takes into account the unique circumstances of small stations, regardless of the size of their markets. This will be achieved through a basic contribution system based on a station's revenues that will automatically adjust for changes in the financial situation of the stations.

The new approach also provides stations with the flexibility to fund a variety of development initiatives tailored to their community and format: more than 600 commercial radio stations can now direct a portion of their required CCD spending to projects by independent parties involving Native radio and to programming serving the particular needs and interests of children, Aboriginal peoples, and persons with disabilities. Commercial ethnic broadcasters can now direct all of their CCD spending to independent initiatives that support their unique programming content.

Broadcasters will continue to make contributions to support FACTOR and MUSICACTION, which assist in the development of a variety of Canadian artists, including new and emerging artists.

In its Policy concerning the issuance of calls for radio applications and a new process for applications to serve small markets, the CRTC took into account the challenging environment faced by broadcasters in smaller radio markets, where the population aged 12 and above does not exceed 250,000. If the CRTC receives an application to serve a smaller market, Commission staff will assess this market's economic state in order to determine its ability to sustain a new radio station. Should its preliminary analysis indicate that the market in question is unable to support a new radio station, the applicant will then have the opportunity to either withdraw the application or submit additional information. This step will provide greater transparency and help prevent overlicensing in smaller radio markets.

In Digital Radio Policy, the CRTC set out its revised policy for digital broadcasting. In order to enhance the prospects of digital radio broadcasting (DRB) offered in the L-band, licensees will be free to develop whatever broadcast services they believe will be of greatest interest to the public.

The DRB policy notice concluded with an announcement that the CRTC will convene a round table with chief executive officers of the major radio groups in six months time to discuss the industry's proposed plan and implementation schedules for DRB and related issues.

Cultural diversity and accessibility

One of the Canadian Association of Broadcasters' (CAB) key initiatives to improve the representation and reflection of diversity in broadcasting has been a review of its broadcasting industry codes to determine whether they address concerns identified in recent research findings regarding reflection and portrayal of visible minorities, Aboriginal peoples and persons with disabilities. In this regard, the CAB submitted to the CRTC for its approval a proposed Equitable Portrayal Code in order to establish industry standards for the equitable portrayal of identifiable groups. The CRTC will review the proposed code in Spring 2007, and any further steps will be determined at that time.

As part of the review process for the Commercial radio policy, the CAB submitted a set of cultural diversity best practices and an annual reporting strategy for all commercial radio broadcasters in order to improve the representation, portrayal and participation of visible minorities and Aboriginal peoples in radio. The CRTC directed the CAB to make a number of amendments to these best practices, including the incorporation of persons with disabilities, and to develop an appropriate annual reporting strategy for small commercial radio stations. Once the best practices are approved by the CRTC, all commercial radio broadcasters will be expected to adhere to them. The annual reporting proposal is expected in June 2007.

To further encourage and expedite the entry of new Canadian third-language services in order to better serve Canada's ethnic, third language communities, the CRTC issued Exemption order respecting certain third-language television undertakings, Broadcasting Public Notice CRTC 2007-33, 30 March 2007.

In order to improve the accessibility of television programming for persons who are deaf or hard of hearing, the CRTC called for comments on the appropriateness of a requirement for the captioning of 100 percent of all television programming and proposals to address ongoing concerns about captioning quality (see Review of certain aspects of the regulatory framework for over-the-air television, Broadcasting Notice of Public Hearing CRTC 2006-5, 12 June 2006). The CRTC intends to issue its determinations on these matters in Spring 2007.

Since 2001, the CRTC has been imposing conditions of licence on Canadian broadcasters requiring them to provide a certain amount of programming with described video as a means of enriching the television experience of persons who are blind or who have a visual impairment. In addition to reviewing the obligations of Canadian broadcasters in their licence renewals, Commission staff is now exploring the extent to which broadcasting distribution undertakings are fulfilling their obligations to pass through the described video programming provided by broadcasters. This review is expected to be completed in Spring 2007, and any further steps will be determined at that time.

Programming standards

While many concerns of the public with respect to content standards are addressed by the Canadian Broadcast Standards Council, the broadcast industry's self-regulatory body, the CRTC remains responsible for matters pertaining to abusive comment (as set out in its various Regulations) and high standard (as set out in the Broadcasting Act). In 2006, the CRTC rendered five decisions concerning allegations of abusive comment in radio and television programming. In two of those cases, the CRTC found that its Regulation prohibiting the broadcast of abusive comment was breached (Broadcasting Decisions CRTC 2006-565 and 2006-19). The CRTC also addressed concerns raised by viewers of television programming with respect to the high standard provision of the Broadcasting Act in two decisions (Broadcasting Decisions CRTC 2006-668 and 2006-603).

Emergency alert services

At a public hearing held in Gatineau beginning on 15 May 2006, the CRTC considered three applications to establish emergency alert services in Canada. Following its deliberations on the proposals, the CRTC set out its approach in Emergency alert services, Broadcasting Public Notice CRTC 2007-20, 28 February 2007, and three related decisions (Broadcasting Decisions Pelmorex emergency alert service, CRTC 2007-72, CBC emergency alert service CRTC 2007-73 and ExpressVu emergency alert service CRTC 2007-74).

The CRTC considered that a voluntary approach is the best option for the establishment of a Canadian emergency alert system. To remove regulatory barriers to the timely implementation of an emergency alert service by all industry stakeholders, the CRTC issued proposed amendments to the Broadcasting Distribution Regulations on the same day.

The CRTC further addressed emergency alerting in Use of E9-1-1 information for the purpose of providing an enhanced community notification service, Telecom Decision CRTC 2007-13, also issued on 28 February 2007. A summary of that decision is found in the following section on Telecom Accomplishments.

New and emerging technologies: Report prepared pursuant to Section 15 of the Broadcasting Act

On 12 June 2006, the CRTC issued Call for comments on a request by the Governor in Council pursuant to section 15 of the Broadcasting Act to prepare a report examining the future environment facing the Canadian Broadcasting system, Broadcasting Public Notice CRTC 2006-72. The purpose of the call for comments was to gather information from the public addressing the points set out in an Order in Council issued by the Government. This information would then be used to inform the Government's own policy determinations with respect to the future of broadcasting in Canada, as well as the CRTC's review of certain aspects of its regulatory framework for over-the-air television.

The CRTC received more than 50 submissions from individuals, consumer groups, broadcasters, distributors and industry associations. To further assist in the process, the CRTC commissioned three independent research studies and used in-house information that it acquires in preparing its annual Broadcasting Policy Monitoring Report as well as financial information filed by licensees through their annual returns.

Following examination of the comments received, the CRTC prepared and issued a report on 14 December 2006 entitled The Future Environment Facing the Canadian Broadcasting System. This report highlights the evolution of audio-visual technologies and the profound impact this evolution is having on how Canadians communicate, express themselves and interact with various media, leading to important economic and social implications and a new communications and media environment.

In fulfilling its mandate under the Broadcasting Act, the CRTC is required on an ongoing basis to address regulatory issues associated with the introduction and impact of new audio-visual technologies. To do so, it will continue to expand both its ongoing general monitoring of the broadcasting system, and developments in the evolution, contribution and impact of new audio-visual technologies.

The CRTC is conducting reviews of its regulatory frameworks, starting with radio and television in 2006. In other reviews to follow in 2007-2008, the CRTC will continue to focus on the current and anticipated impact of technological change.

Digital and high definition broadcasting

The CRTC announced its final Regulatory framework for the licensing and distribution of high definition pay and specialty services, Broadcasting Public Notice CRTC 2006-74 (Public Notice 2006-74) on 15 June 2006. This is the latest in a series of policy determinations intended to guide the broadcasting industry in its transition from analog to digital technology and ultimately to high definition broadcasting (HD).

Since the demand by Canadian viewers for digital and HD services is growing, the CRTC intends to keep it as a high priority for the next years. In 2007-2008, the CRTC plans to initiate a proceeding on the proposed framework for the distribution of HD services by direct-to-home distribution undertakings. As well it will initiate a proceeding to implement regulatory changes arising from Public Notice 2006-74 and from previous public notices dealing with the digital/HD transition.

Review of certain aspects of the regulatory framework for over-the-air television

In 2006, the CRTC launched a review of certain aspects of its framework for over-the-air television. A public hearing was held beginning on 27 November 2006 in Gatineau (Broadcasting Notice of Public Hearing CRTC 2006-5, 12 June 2006).

Parties filed more than 100 submissions that addressed the objectives of the review and specific issues that the CRTC identified for consideration. Close to 55 parties appeared at the public hearing.

The CRTC expects to complete its review and issue its conclusions in Spring 2007. Following the issuance of its conclusions, the CRTC will implement its policy through updated regulations and during licence renewal proceedings.

Initiatives undertaken for future reviews

At the end of the calendar year 2006, Commission staff held a series of informal consultations with industry and consumer representatives. The goal of the consultations was to assist the CRTC in identifying issues and priorities for the review of other frameworks that apply to the licensing of programming and distribution undertakings.

Following its review of the regulatory framework for over-the-air television, the CRTC plans to launch a formal review of its policy frameworks for analog and digital (Category 1 and Category 2) specialty, pay, pay-per-view and video-on-demand services. In addition to examining the impact of new technologies on this sector, the review will focus, among other things, on the effectiveness of the CRTC's approach to licensing new pay and specialty services, the appropriate licensing framework for on-demand services, as well as the appropriate contributions by specialty, pay, pay-per-view and video-on-demand licensees to the exhibition and development of, and investment in, Canadian programming.

The CRTC also plans to initiate, in 2007-2008, a formal review of the Broadcasting Distribution Regulations. The purpose of the review is to update and simplify the Regulations, and to reflect changes in the environment since they went into effect on 1 January 1998.

Streamlined broadcasting processes

In Streamlined processes for certain broadcasting applications, Broadcasting Circular CRTC 2006-1, 27 March 2006 (Circular 2006-1), the CRTC announced an expedited process whereby it would inform applicants of the status of their licence amendment applications within 15 business days of receiving an application. The CRTC estimated that, in the absence of any significant or unresolved issues or concerns surrounding the applications in question, the processing time could be reduced by approximately half for licence amendment applications processed administratively and by a written public proceeding.

In the first year of implementation, the CRTC has reduced the average time to deal with amendment applications by 50 percent over last year's results.

In Circular 2006-1, the CRTC announced other areas under review. It has since concluded streamlining review processes in the following areas: processing of requests to add foreign third-language services to the Lists of Eligible Satellite Services; exempting certain network operations from licensing requirements; reviewing broadcasting application forms; and reviewing the policy concerning the issuance of radio calls for applications. In addition, the CRTC set out measures to streamline certain reporting requirements for Class 1 cable distribution undertakings having 20,000 or more subscribers and for television licensees. On 30 March 2007, the CRTC issued Exemption order respecting certain third-language television undertakings which exempts such undertakings from licensing requirements.

The CRTC has also undertaken an exhaustive review of the process for applications that involve an oral public hearing. Significant measures have been identified to streamline and expedite this review process. Measures for certain types of applications dealt with by an oral public hearing will be announced early in fiscal year 2007-2008.

Telecom Accomplishments

Following are the highlights of the CRTC major accomplishments in regulating and monitoring the Canadian telecommunication system in 2006-2007.

Major Proceedings

Rate Ranges

In response to specific applications concerning local voice over Internet Protocol (VoIP) services, the CRTC recently approved tariffs introducing ranges of rates for a number of VoIP services being introduced by the major telephone companies. These rate ranges allowed these companies to change the rates for such services without obtaining prior approval from the CRTC, as long as the new rates are within the approved rate ranges. This has allowed the incumbent local exchange carrier (ILEC) to respond more quickly to changes in market conditions for these VoIP services.

In Rate ranges for services other than voice over Internet protocol services, Telecom Public Notice CRTC 2006-8, 9 June 2006 (Public Notice 2006-8), the CRTC initiated a proceeding in order to establish guidelines for dealing with applications requesting approval of rate ranges for regulated services other than local VoIP services.

In Rate ranges for services other than voice over Internet Protocol services, Telecom Decision CRTC 2006-75, 23 November 2006, the CRTC rendered its determinations in the proceeding initiated by Public Notice 2006-8. The CRTC determined that rate ranges would generally be appropriate for local exchange and related services, with exceptions for certain services in recognition of the importance of services with regard to such matters as public safety, protection of privacy, and accessibility for persons with disabilities. The CRTC also considered that it would not generally be appropriate to require the public disclosure of rate ranges. Furthermore, the CRTC determined that when an ILEC established a new operative price point within an approved rate range, it would be required to issue revised tariff pages identifying that price point no later than the commencement of the business day that the change was to be effective, or on an earlier day if the change was to be effective on a non-business day.

Regulatory Framework for Northwestel

Price cap regulation generally places upward constraints on prices that an incumbent local exchange carrier can charge its customers for various telecommunications services. The price cap regime includes other rules wich govern the rates charged to residential and business customers. Price cap regulation is used to constrain market power with respect to service rates and to ensure customer access to just and reasonable rates.

In Price cap regulation for Northwestel Inc., Telecom Decision CRTC 2007-5, 2 February 2007, the CRTC, among other things, implemented a price cap regime for Northwestel for a period of four years. The CRTC determined that Northwestel would receive $18.9 million in annual funding from the National Contribution Fund for the initial price cap period in support of residential primary exchange services in high-cost serving areas and the ongoing costs associated with Northwestel's recently completed service improvement plan. In addition, the CRTC determined that resale of local exchange services would be permitted and that it would forbear from the regulation of Northwestel's long distance services.

Local Forbearance

On 6 April 2006, the CRTC issued Forbearance from the regulation of retail local exchange services, Telecom Decision CRTC 2006-15 (Decision 2006-15). This Decision, among other things, established a framework for assessing applications from the ILECs for forbearance from the regulation of local exchange services (local forbearance).

In Proceeding to reassess certain aspects of the local forbearance framework established in Decision 2006-15, Telecom Public Notice CRTC 2006-12, 1 September 2006 (Public Notice 2006-12), the CRTC invited comments regarding whether the 25 percent market share loss test set out in Decision 2006-15 continued to be appropriate. The CRTC also invited comments on whether mobile wireless services should be considered to be part of the same relevant market as wireline local exchange services for forbearance analysis purposes.

On 16 December 2006, the Governor in Council published, in the Canada Gazette, Part I, a proposed Order to vary part of Decision 2006-15 (the proposed Order) pursuant to subsection 12(1) of the Telecommunications Act. The proposed Order set out a revised framework to determine when local forbearance would be granted to the ILECs. The revised framework would, among other things, eliminate the CRTC's 25 percent market share loss test and replace it with a "competitive presence" test.

In light of the above, the CRTC deferred its consideration of the issues in the Public Notice 2006-12 proceeding pending a final determination with respect to the proposed Order.

Effective 4 April 2007, the Governor in Council issued an Order Varying Telecom Decision CRTC 2006-15, P.C. 2007-532.

Voice over Internet Protocol (VoIP) Reconsideration

In Order in Council P.C. 2006-305, dated 4 May 2006, the Governor in Council, pursuant to subsections 12(1) and 12(5) of the Telecommunications Act, referred Regulatory framework for voice communication services using Internet Protocol, Telecom Decision CRTC 2005-28, 12 May 2005, as amended by Telecom Decision CRTC 2005-28-1, 30 June 2005 (Decision 2005-28) back to the CRTC for reconsideration. The CRTC was directed to complete its reconsideration of Decision 2005-28 within 120 days of the date of the Order in Council P.C. 2006-305.

In Reconsideration of Regulatory framework for voice communication services using Internet Protocol, Telecom Decision CRTC 2006-53, 1 September 2006 (Decision 2006-53), the CRTC reaffirmed the regulatory regime applicable to the provision of VoIP services, as set out in Decision 2005-28.

In Order in Council P.C. 2006-1314, dated 9 November 2006 (Order in Council 2006-1314), the Governor in Council, pursuant to subsection 12(7) of the Telecommunications Act, varied Decision 2005-28, as confirmed in Decision 2006-53, such that retail local access-independent VoIP services provided by incumbent local exchange carriers (ILECs) within their incumbent territories were forborne from regulation. The Order defined access-independent VoIP services as those services in which access and service may be provided by distinct providers - the service provider is not required to provide the underlying network on which the service rides and is not required to obtain the permission of the network provider to offer the service to customers on that network. The Order also noted that access-independent VoIP services require high-speed Internet access as well as special handsets, adapters or the use of a computer, and may be more susceptible to service deterioration or disruption.

In Access-independent VoIP services pursuant to Order in Council P.C. 2006-1314, Telecom Circular CRTC 2006-10, 16 November 2006, the CRTC noted that by virtue of Order in Council 2006-1314, the tariffs previously approved by the CRTC for the following services were no longer of any force or effect to the extent specified in the Order in Council P.C. 2006-1314:

• Bell Digital Voice Lite (Bell Canada General Tariff item 7020);
• Business IP Voice for Broadband (Bell Canada General Tariff item 7025); and
• WebCall (SaskTel General Tariff item 550.14).

Wireless Number Portability

During 2006, the industry continued its effort towards implementing wireless number portability, and the CRTC issued several decisions related to these efforts. On 18 May 2006, the CRTC released Regulatory issues related to the implementation of wireless number portability - Follow-up to Public Notice 2006-3, Telecom Decision CRTC 2006-28. This Decision provided directions on a number of regulatory issues related to such matters as the arrangements for the exchange of telephone calls between carriers, telephone number requirements, treatment of telephone numbers in shared numbering blocks that are used by more than one type of carrier and changes, if any, to other regulatory rules currently in place that could be impacted by wireless number portability.

Also, in this decision, the CRTC requested that the CRTC Interconnection Steering Committee (CISC) submit reports to the CRTC on transferring blocks of telephone numbers to wireless carriers at one time, changes to the location routing number assignment practices, and a roll-out schedule for wireless number portability in additional exchanges where local number portability was not currently in place. These reports were approved by the CRTC in CISC working group reports on regulatory issues related to the implementation of wireless number portability, Telecom Decision CRTC 2006-74, 22 November 2006. A follow-up mass number porting report was approved by the CRTC in CRTC Interconnection Steering Committee Business Process Working Group consensus report on wireless number portability implementation, Telecom Decision CRTC 2007-3, 26 January 2007.

The CRTC also approved the revised Unanimous Shareholder Agreement for the Canadian Local Number Portability Consortium in Canadian Local Number Portability Consortium - Amended and Restated Unanimous Shareholders Agreement, Telecom Decision CRTC 2006-46, 28 July 2006. The revised Unanimous Shareholders Agreement included changes that permitted wireless carriers to join the consortium and to access the Canadian number portability systems.

On 14 March 2007, the Canadian Wireless Telecommunications Association announced the availability of wireless number portability (WNP) in metropolitan areas across the country. WNP allows customers who live in areas where local number portability is currently available to transfer their phone numbers between cellphone service providers, as well as between wireline and cellphone service providers.

Consumer Bill of Rights

In Statement of consumer rights, Telecom Decision CRTC 2006-52, 29 August 2006 (as amended by Amendment to the statement of consumer rights, Telecom Decision CRTC 2006-78, 21 December 2006), the CRTC established a statement of consumer rights for customers of incumbent local exchange carriers' (ILECs) local exchange services. The statement of consumer rights restated key consumer rights with respect to local home phone service in a clear and comprehensible manner. Major ILECs were directed to include this statement of consumer rights on their website and with their residential telephone directories.

Community Notification Services

In Use of E9-1-1 information for the purpose of providing an enhanced community notification service, Telecom Decision CRTC 2007-13, 28 February 2007, the CRTC determined that it was in the public interest to allow public authorities to use the telephone numbers and associated addresses contained in 9-1-1 databases, in order to improve the effectiveness of telephony-based emergency public alerting services, also known as community notification services. The use of enhanced 9-1-1 information for a telephone-based community notification service was subject to certain constraints including limitations to circumstances of use, appropriate safeguards, and notification requirements.

Competitor Services

The CRTC issued a number of decisions relating to the terms, conditions, and final rates of key competitor services provided by incumbent telephone companies, as follows.

In Follow-up to Trunking arrangements for the interchange of traffic and the point of interconnection between local exchange carriers, Telecom Decision CRTC 2004-46, Telecom Decision CRTC 2006-35, 29 May 2006, the CRTC approved amended definitions of interconnection regions and associated rates for interconnection between the incumbent local exchange carrier and the competitive local exchange carrier. This decision included several enhancements to the interconnection regime for competitive local exchange carriers thereby permitting greater efficiency in the local carriers' networks.

In Aliant Telecom, Bell Canada, MTS Allstream, SaskTel and TCI - Approval of rates on a final basis for Access Tandem service, Telecom Decision CRTC 2006-22, 27 April 2006 and Aliant Telecom, Bell Canada, MTS Allstream, SaskTel and TCI - Approval of rates on a final basis for Direct Connection service, Telecom Decision CRTC 2006-23, 27 April 2006, the CRTC approved revised final rates for each ILEC's Access Tandem (AT) and Direct Connection (DC) services. The DC and AT services are interconnection services that toll service providers typically require to provide service to their customers. In Bell Canada and TCC - Co-location power service rates, Telecom Decision CRTC 2006-42, 30 June 2006, as amended by Telecom Decision CRTC 2006-42-1, 25 August 2006, the CRTC also approved revised final rates for co-location power services. Subsequently, in Bell Aliant Regional Communications, Limited Partnership, MTS Allstream Inc., and Saskatchewan Telecommunications - Co-location power service rates, Telecom Decision CRTC 2007-17, 21 March 2007, the CRTC further approved revised final rates for Bell Aliant's, MTS Allstream's and SaskTel's co-location power services. The co-location power service is used by a competitor that co-locates in an ILEC's central office. Under these decisions, the rates for these services were generally reduced, reflecting reductions to the ILECs' costs to provision these services.

In Cogeco, Rogers, Shaw, and Videoton - Third-party Internet access service rates, Telecom Decision CRTC 2006-77, 21 December 2006, the CRTC approved revised terms, conditions, and final rates for third-party Internet access (TPIA) service using cable networks.

In early 2007,¹ the CRTC approved revised terms, conditions, and final rates for the ILECs' competitor asymmetric digital subscriber line (ADSL) Access services. The TPIA or ADSL access services permit Internet service providers to compete in the retail high-speed Internet market. In finalizing these tariffs, the CRTC recognized the need for comparable competitor high-speed access services and tariffs across incumbent cable and telephone companies.

In Ethernet services, Telecom Order CRTC 2007-20, 25 January 2007, the CRTC approved revised terms and final rates for the ILECs' Ethernet access, CO link and transport services. The Ethernet services have several advantages over previous data transmission services and permit competitive service providers to deliver new services and applications using Ethernet protocol. In finalizing these tariffs, the CRTC considered the importance of providing comparable competitor Ethernet services across ILECs.

Review of regulatory framework for wholesale services and definition of essential service

In Review of regulatory framework for wholesale services and definition of essential service, Telecom Public Notice CRTC 2006-14, 9 November 2006, the Commission initiated a proceeding to consider a revised definition of essential service, as well as the classifications and pricing principles for essential and non-essential services made available by incumbent telephone companies, cable carriers and competitive local exchange carriers to other competitors at regulated rates (wholesale services). The process includes evidence, interrogatories, and an oral hearing to be held in October 2007. The decision is expected to be announced by mid April 2008

Review of certain Phase II costing issues

In Review of certain Phase II costing issues, Telecom Public Notice CRTC 2007-4, 30 March 2007, the CRTC has initiated a review of certain Phase II costing issues with respect to major telecommunications and cable companies. Issues to be considered in this proceeding include the appropriate expense inclusions and the update of equipment life estimates to be used in regulatory economic studies. The process includes submission of evidence by all parties followed by two rounds of interrogatories, comments and reply comments. The decision is expected to be announced by mid February 2008.

Streamlining

Service Standards

Under section 26 of the Telecommunications Act, the CRTC is required to issue, within 45 business days of receipt of a tariff application, its determination or, if it cannot do that, a letter indicating the reason for this delay, and when it anticipates to rule on the application.

In 2005, in response to stakeholders' comments received, the CRTC issued Introduction of a streamlined process for retail tariff filings, Telecom Circular CRTC 2005-6, 25 April 2005, and Finalization of the streamlined process for retail tariff filings, Telecom Circular CRTC 2005-9, 1 November 2005 (Circular 2005-9).

Under the streamlined processes for processing retail tariff applications, the CRTC informs the applicants of the status of applications within 10 business days of receipt of a complete application. As a result of this initiative, the CRTC has reduced its average time to dispose of retail tariff applications by 50 percent. Results posted on the CRTC's website indicate that the new service standards were consistently met during 2006.

Further, in New procedures for disposition of applications dealing with the destandardization and/or withdrawal of tariffed services, Telecom Circular CRTC 2005-7, 30 May 2005 (Circular 2005-7), the CRTC set out new procedures and service standards to reduce the time period associated with the processing of these types of applications, and to provide the ILECs with greater regulatory certainty by identifying clear, publicly-known steps, timelines and criteria that could be consistently relied on by both customers and carriers. In 2006, the CRTC processed tariff applications dealing with the destandardization and/or withdrawal of tariffed services in accordance with the procedures and standards established in Circular 2005-7.

In Service standards for the disposition of telecommunications applications, Telecom Circular CRTC 2006-11, 7 December 2006 (Circular 2006-11), the CRTC re-introduced service standards for all telecommunications applications including all tariff applications, inter-carrier agreements, international telecommunications services licences, and applications received pursuant to Part VII of the CRTC Telecommunications Rules of Procedure (Part VII applications).

In Circular 2006-11, the CRTC determined that, from the date of that Circular, there would be common service standards for the approval of inter-carrier agreements and all tariff applications.

Further, based on an assessment of the disposition of all tariff applications and inter-carrier agreements, and on comments received from stakeholders, the CRTC established the following standards for the disposition of all tariff applications and inter-carrier agreements:

• 85 percent of determinations to be issued on an interim or final basis within two months of receipt of a complete application, and
• 95 percent of determinations to be issued on an interim or final basis within four months.

The CRTC also determined that the service standards for the destandardization and/or withdrawal of tariffs and for the streamlined processing of retail tariffs finalized in Circulars 2005-7 and 2005-9 would remain in effect.

• 95 percent of determinations on retail tariff applications to be issued on a final basis within 12 months.

In Basic international telecommunications services (BITS) licensing regime - Amendments, Telecom Circular CRTC 2005-8, 23 June 2005, the CRTC amended the conditions of licence of Class A and Class B BITS providers and changed the application procedures. The CRTC adopted the following service standard for international telecommunications services licences:

• 90 percent of determinations to be issued within one month of receipt of a complete application.

In addition, the CRTC determined that it would categorize Part VII applications into two types: Type 1 applications that generally do not involve multiple parties or raise significant policy issues, and Type 2 applications that do involve multiple parties and/or raise significant policy issues. The CRTC noted that Type 1 applications would typically require shorter processing times than Type 2 applications.

Furthermore, based on its assessment of the expected number of applications, competing priorities, and the expected level of resources, the CRTC adopted the following service standards for Part VII applications:

Type 1 Part VII applications:

• 90 percent of determinations to be issued on an interim or final basis within four months of the close of record.

Type 2 Part VII applications:

• 85 percent of determinations to be issued on an interim or final basis within eight months of the close of record.

The CRTC undertook to inform applicants by letter, within 10 days of the end of the comment period for an application, whether the application was considered to be a Type 1 or Type 2 application, and what the applicable service standards were.

In Circular 2006-11, the CRTC undertook to evaluate the service standard results for all types of telecommunications applications on an annual basis and to post these results on the CRTC's website, following the 31 March fiscal year-end. The CRTC expected to post results for retail tariff streamlined processing and for all tariff applications and inter-carrier agreements on a quarterly basis for information purposes. Given that it was in the latter part of the current fiscal year and that the service standards were to be evaluated on an annual basis, the CRTC indicated that it would begin measuring the service standards starting on 1 April 2007.

Alternative Dispute Resolution

The CRTC remained committed to the resolution of competitive disputes through alternative dispute resolution in 2006/2007. The CRTC has also been equally supportive and strongly encouraged parties to pursue independent negotiations to resolve any competitive dispute. In instances where the parties could not settle a dispute by mutual agreement, the CRTC has successfully used a number of resolution mechanisms to settle a number of competitive disputes. Specifically, eighteen out of twenty files have been resolved using one or a mix of the dispute resolution mechanisms identified by the CRTC in its dispute resolution framework. Currently, Commission staff is actively involved in mediating a solution for five competitive disputes.

Broadcasting

xxxx

Telecommunications

Notes:

¹ On 25 January 2007, the CRTC issued Bell Aliant Regional Communications, Limited Partnership for services provided in the Atlantic Provinces - ADSL Access Service and ADSL WAN Service, Telecom Order CRTC 2007-21, Bell Canada and Bell Aliant Regional Communications, Limited Partnership for services provided in Ontario and Quebec - Gateway Access Service and High Speed Access Service, Telecom Order CRTC 2007-22, MTS Allstream Inc. - Asymmetric Digital Subscriber Line (ADSL) Data Access Service, Telecom Order CRTC 2007-23, Saskatchewan Telecommunications - Aggregated Asymmetric Digital Subscriber Line (ADSL) Service, Telecom Order CRTC 2007-24, and TELUS Communications Company - Network-to-Network Interface Service, Wide Area Network ADSL Service, and Wholesale Internet ADSL Service, Telecom Order CRTC 2007-25. [back]