Telecom Order

Ottawa, 10 September 1997

Telecom Order CRTC 97-1295

On 6 June 1997, Québec-Téléphone filed an application for interim approval of tariff revisions for the recovery of switching and aggregation costs.

File No.: Tariff Notice 168

1. Québec-Téléphone submitted that since 1 January 1997, interexchange service providers have been provided with interconnection on an equal access basis for their switched traffic terminating in its territory and for 800/888 service.

2. Québec-Téléphone maintained that on 1 January 1997 it applied an interim contribution rate set at $0.1791 for all independent telephone companies in Quebec.

3. Québec-Téléphone argued that adding on switching and aggregation charges at that time would have resulted in an excessively high carrier access tariff (CAT).

4. Québec-Téléphone recalled that in Telecom Order CRTC 97-573 dated 29 April 1997, the Commission gave interim approval, effective 1 January 1997, for a revised contribution rate of $0.0754 to replace the existing interim contribution rate.

5. Québec-Téléphone noted that the revised contribution rate was based on Phase III studies and included no compensation for switching and aggregation costs.

6. Québec-Téléphone therefore proposed to recover switching and aggregation costs from interexchange service providers beginning on 1 January 1997.

7. AT&T Canada Long Distance Services Company (AT&T Canada LDS) opposed the Québec-Téléphone application, arguing that it would be inappropriate to apply switching and aggregation charges before equal access is put in place.

8. AT&T Canada LDS submitted that the rate proposed by Québec-Téléphone was developed to recover the costs of a series of services available under equal access, and that the company to date cannot obtain that package of services.

9. AT&T Canada LDS also opposed the Québec-Téléphone proposal to apply switching and aggregation charges retroactively.

10. AT&T Canada LDS further was of the view that Québec-Téléphone, like the Stentor members, should unbundle the switching and aggregation charges.

11. Québec-Téléphone replied that switching and aggregation charges apply not only to the originating minutes or terminating minutes of an interexchange service provider under equal access, but to all trunk-side access minutes irrespective of whether equal access is or is not in effect.

12. Québec-Téléphone submitted that the only situation in which switching and aggregation charges would not apply is where an interexchange service provider has line-side access.

13. The Commission is of the view that, as regards the services specified by Québec-Téléphone, the company provides the interexchange service providers with switching and aggregation services for which it receives no compensation.

14. The Commission is of the view that the switching and aggregation charges coming into interim effect on 1 January 1997, over and above the contribution rate then in effect, raises no tariff retroactivity issues.

15. The Commission considers that approval of this proposal and its coming into effect on 1 January are appropriate.

16. The Commission notes that in Regulatory Framework for Québec-Téléphone and Télébec ltée, Telecom Decision CRTC 96-5, 7 August 1996, it directed Québec-Téléphone to file unbundled rates for the recovery of switching and aggregation costs when it was able to do so.

17. In light of the foregoing, the Commission approves the proposed tariff revisions on an interim basis effective 1 January 1997.

Laura M. Talbot-Allan
Secretary General

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