ARCHIVED -  Telecom Order CRTC 97-1334

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Telecom Order

Ottawa, 16 September 1997
Telecom Order CRTC 97-1334
On 7 July 1997, Télébec ltée (Télébec) filed an application for interim approval of tariff revisions for the recovery of switching and aggregation costs.
File No.: Tariff Notice 146
1. Télébec noted that competitive interexchange service providers (CISP) can use trunk-side functions belonging to Télébec to route their calls terminating in Télébec territory.
2. Télébec submitted that, since switching functions are used by CISP, those providers should defray the associated user costs.
3. Télébec indicated that, as the principle of recovering switching and aggregation costs was accepted by the Commission, and CISP have been able to route their switched traffic terminating in Télébec territory on an equal access basis since 1 January 1997, the switching and aggregation tariff should apply.
4. Télébec therefore proposed to recover switching and aggregation costs from CISP beginning on 1 January 1997.
5. AT& T Canada Long Distance Services Company (AT&T Canada LDS) opposed the Télébec application, arguing that it would be inappropriate to apply switching and aggregation charges before equal access is in place.
6. AT&T Canada LDS submitted that the rate proposed by Télébec 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.
7. AT&T Canada LDS also opposed the Télébec proposal to apply switching and aggregation charges retroactively.
8. AT&T Canada LDS further was of the view that Télébec, like the Stentor members, should unbundle switching and aggregation charges.
9. Télébec reiterated that calls from CISP are being routed by Télébec switches without adequate compensation for use of the switches.
10. The Commission notes that in Telecom Order CRTC 97-313, 6 March 1997, as amended by Telecom Order CRTC 97-313-1, 14 April 1997, it granted interim approval for the carrier access tariff proposed by Télébec effective 1 January 1997.
11. The Commission is of the view that, as regards switched traffic terminating in its territory and 800/888 service, Télébec provides CISP with switching and aggregation services for which it receives no compensation.
12. The Commission is of the view that the coming into interim effect on 1 January 1997 of switching and aggregation charges, over and above the contribution rate then in effect, raises no tariff retroactivity issues.
13. The Commission considers that approval of this proposal and its coming into effect on 1 January 1997 are appropriate.
14. The Commission notes that in Regulatory Framework for Québec-Téléphone and Télébec ltée, Telecom Decision CRTC 96-5, 7 August 1996, it directed Télébec to file unbundled rates for the recovery of switching and aggregation costs when it was able to do so.
15. 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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