Telecom Regulatory Policy CRTC 2016-12

PDF version

Reference: 2015-369

Ottawa, 14 January 2016

File number: 8663-C12-201508392

Application of the 9-1-1 regulatory obligations directly to non-carriers offering and providing telecommunications services

The Commission directs non-carriers, as a condition of offering and providing any telecommunications service, including local exchange, wireless voice, local voice over Internet Protocol, and payphone services, to abide by all applicable existing and future obligations with respect to 9-1-1 service.

As well, the Commission modifies the existing requirement for underlying carriers to include 9-1-1 service provision in their service contracts or other arrangements with non-carriers. Under this modified requirement, underlying carriers are also to report, in a timely manner, any non-compliance with the 9-1-1 obligations. The Commission also imposes these modified requirements on non-carriers that provide services to other non-carriers.

With this decision, the Commission strengthens the regulatory obligations that require that Canadians have access to reliable and effective 9-1-1 service.

Background

  1. The Commission has mandated telecommunications service providers to provide their customers with 9-1-1 service wherever provincial/territorial and municipal governments have established specialized 9-1-1 call centres known as public safety answering points (PSAPs). As a result, an estimated 98% of Canada’s population currently has access to either Basic 9-1-1 or Enhanced 9-1-1 (E9-1-1) serviceFootnote 1 through wireline, wireless, and voice over Internet Protocol (VoIP) telephone services.

  2. The Commission has the authority under the Telecommunications Act (the Act) to impose conditions on the offering and provision of telecommunications services by Canadian carriers. However, until recently, the Commission did not have the authority to directly impose these conditions on non-carriers (persons offering and providing any telecommunications service other than Canadian carriers, generally known as resellers).Footnote 2 Instead, the Commission directed, in various decisions as required, underlying carriers that provide services to non-carriers to ensure through their contractual arrangements that the non-carriers are subject to these conditions. This approach was used to ensure that non-carriers comply with the Commission’s 9-1-1 obligations (referred to hereafter as the underlying carrier 9-1-1 requirement).Footnote 3

  3. As a result of the Economic Action Plan 2014 Act, No. 2, which came into force on 16 December 2014, a number of amendments were made to the Act. Among other things, new provisions were added to grant the Commission the authority to

    • impose general administrative monetary penalties (AMPs) to promote compliance with the Act;Footnote 4 and

    • directly regulate non-carriers.Footnote 5

Introduction

  1. In Telecom Notice of Consultation 2015-369, the Commission initiated a proceeding for parties to show cause why the existing 9-1-1 obligations should not apply directly to non-carriers that provide local exchange, wireless voice, local VoIP, or payphone services. The Commission also invited comments on whether the underlying carriers should continue to be subject to the underlying carrier 9-1-1 requirement.

  2. The Commission received interventions from Bell Canada; the Canadian Network Operators Consortium Inc. (CNOC); la Coalition pour le service 9-1-1 au Québec (la Coalition); Paul Mak; the Public Interest Advocacy Centre (PIAC); Quebecor Media Inc., on behalf of its affiliate Videotron G.P. (Videotron); Rogers Communications Partnership (RCP); Shaw Communications Inc. (Shaw); and TELUS Communications Company (TCC).

Issues

  1. Based on its review of the record of this proceeding, the Commission has identified the following issues to be addressed in this decision:

    • Should the 9-1-1 obligations apply directly to non-carriers that provide local exchange, wireless voice, local VoIP, or payphone services?

    • Should underlying carriers continue to be subject to the underlying carrier 9-1-1 requirement?

Should the 9-1-1 obligations apply directly to non-carriers that provide local exchange, wireless voice, local VoIP, or payphone services?

  1. All of the parties that commented on this issue agreed that the 9-1-1 obligations should apply directly to non-carriers that provide local exchange, wireless voice, local VoIP, or payphone services.

Commission’s analysis and determinations
  1. Application of the 9-1-1 obligations directly to the above-mentioned non-carriers would be consistent with the Commission’s regulation of carriers, which are subject to these obligations.Footnote 6 Further, this application would provide the Commission with greater flexibility regarding the investigation and enforcement of compliance with the 9-1-1 obligations for non-carriers.

  2. In light of the above, and pursuant to section 24.1 of the Act, the Commission directs persons offering and providing any telecommunications service other than Canadian carriers, as a condition of providing local exchange, wireless voice, local VoIP, or payphone services, to abide by all existing and future obligations with respect to 9-1-1 service, particularly the obligations applicable to non-carriers set out in the Appendix to this decision.

Should underlying carriers continue to be subject to the underlying carrier 9-1-1 requirement?

  1. Bell Canada, CNOC, RCP, Shaw, and TCC argued that underlying carriers should no longer be subject to the underlying carrier 9-1-1 requirement. These parties considered that once the 9-1-1 obligations apply directly to non-carriers, it would be unnecessary and inefficient for underlying carriers to continue to be obligated to comply with the underlying carrier 9-1-1 requirement. Bell Canada and CNOC submitted that removal of the underlying carrier 9-1-1 requirement in light of the Commission’s new authority to directly regulate non-carriers would be consistent with the Policy Direction.Footnote 7

  2. La Coalition and PIAC submitted that underlying carriers should continue to be subject to the underlying carrier 9-1-1 requirement. La Coalition argued that maintaining the requirement would involve no additional cost and would represent an added safeguard. PIAC argued that underlying carriers are likely to provide the most efficient means to track non-carriers and ensure their compliance with the 9-1-1 obligations. PIAC added that if the Commission were required to police all such compliance, significant Commission effort and resources could be required.

Commission’s analysis and determinations
  1. Under the existing underlying carrier 9-1-1 requirement, underlying carriers are required to

    • communicate to non-carriers that they must comply with the 9-1-1 obligations;

    • monitor non-carriers to which they provide service to ensure that they are complying with the 9-1-1 obligations; and

    • enforce compliance (e.g. threaten or implement termination of service) when a non-carrier is not complying with the 9-1-1 obligations.

  2. The existing underlying carrier 9-1-1 requirement has been very useful to the Commission and to Canadians as a means of ensuring that non-carriers comply with the 9-1-1 obligations. However, with the Commission’s new powers to directly regulate non-carriers and to impose mandatory orders and AMPs to promote compliance with the Act, it is expected that the Commission will need to rely less on underlying carriers with respect to the enforcement of compliance by non-carriers with the 9-1-1 obligations.

  3. Given the importance of 9-1-1 services to the security of Canadians, 9-1-1 service providers must be aware of their obligations, and these obligations must be effectively enforced. In this regard, the underlying carrier 9-1-1 requirement provides a useful opportunity for the 9-1-1 obligations to be communicated directly to non-carriers, including non-carriers that have not registered with the Commission.Footnote 8 It also enables underlying carriers to assist the Commission in identifying non-compliance by non-carriers.

  4. Therefore, it is in the public interest that underlying carriers continue to be subject to the underlying carrier 9-1-1 requirement. However, this requirement should be modified to make it clear that the underlying carriers are to assist the Commission in monitoring non-carriers by reporting to the Commission actual or suspected instances of violation of the 9-1-1 obligations by non-carriers.

  5. Accordingly, the underlying carrier 9-1-1 requirement shall be modified

    • to change the role of underlying carriers from a primary to a supportive role with respect to the enforcement of compliance by non-carriers with the 9-1-1 obligations;

    • to formalize the reporting of non-carriers that are known or suspected to be failing to comply with the 9-1-1 obligations; and

    • to apply to non-carriers that provide services to other non-carriers. 

  6. In light of the above, the Commission modifies the underlying carrier 9-1-1 requirement, pursuant to section 24 of the Act, to state the following:

    The Commission directs Canadian carriers, as a condition of offering and providing telecommunications services to persons who offer and provide any telecommunications service, including local exchange services, wireless voice services, local voice over Internet Protocol services, and payphone services, that are not Canadian carriers (hereafter, “non-carriers”), as the case may be, (1) to include in their service contracts or other arrangements with these service providers, the requirement that the latter, and any or all of their wholesale customers and subordinate wholesale customers, abide by all existing and future obligations with respect to 9-1-1 service, particularly the obligations applicable to non-carriers set out in the Appendix to this decision; and (2) to report, in a timely manner, non-compliance by non-carriers with these obligations, whether actual or suspected, by letter addressed to the Secretary General, including the name and contact information of the non-carrier, as well as any details regarding the alleged non-compliant behaviour, and to implement any remedial directions from the Commission.

  7. The Commission also imposes a 9-1-1 service requirement, pursuant to section 24.1 of the Act, that is applicable to non-carriers that provide services to other non-carriers:

    The Commission directs persons who offer and provide any telecommunications service, including local exchange services, wireless voice services, local voice over Internet Protocol services, and payphone services, that are not Canadian carriers (hereafter, “non-carriers”), as the case may be, as a condition of providing telecommunications services to other non-carriers, (1) to include in their service contracts or other arrangements with these service providers, the requirement that the latter, and any or all of their wholesale customers and subordinate wholesale customers, abide by all existing and future obligations with respect to 9-1-1 service, particularly the obligations applicable to non-carriers set out in the Appendix to this decision; and (2) to report, in a timely manner, non-compliance by non-carriers with these obligations, whether actual or suspected, by letter addressed to the Secretary General, including the name and contact information of the non-carrier, as well as any details regarding the alleged non-compliant behaviour, and to implement any remedial directions from the Commission.

Policy Direction

  1. The Policy Direction states that the Commission, in exercising its powers and performing its duties under the Act, shall implement the policy objectives set out in section 7 of the Act, in accordance with paragraphs 1(a), (b), and (c) of the Policy Direction.

  2. Given the importance of 9-1-1 service, market forces cannot be solely relied upon for its provision; therefore, regulation is necessary. The policy objectives set out in paragraphs 7(a), (b), and (h) of the ActFootnote 9 are advanced by the regulatory measures established in this decision.

  3. Consistent with subparagraph 1(a)(ii) of the Policy Direction,Footnote 10 the regulatory measures established in this decision are efficient and proportionate to their purpose. Specifically, the regulatory measures applied to underlying carriers and non-carriers in this proceeding are tailored to the importance of Canadians having access to reliable and effective emergency services.

Other matter - new 9-1-1 obligations

  1. Several parties proposed that the Commission should impose new 9-1-1 obligations on non-carriers. La Coalition submitted that non-carriers should be required to collect and remit all duties and taxes applicable to funding for 9-1-1 service. Paul Mak proposed that non-carriers should either provide 9-1-1 service to their customers as underlying carriers do, or have the option to pay the underlying carrier to offer 9-1-1 service on their behalf on a customer-by-customer basis. RCP submitted that wireless resellers should be made liable for the accuracy of their subscriber database. 

Commission’s analysis and determinations

  1. In Telecom Notice of Consultation 2015-369, the Commission specifically limited the scope of the proceeding to examining whether the existing 9-1-1 obligations should be imposed on non-carriers. Accordingly, the issue of whether new obligations should be imposed is out of the scope of the proceeding and has not been considered. 

Secretary General

Related documents

Appendix to Telecom Regulatory Policy 2016-12

Main 9-1-1 obligations applicable to non-carriers

Any person offering or providing the following telecommunications services who is not a Canadian carrier must provide 9-1-1 services to its end-customers where a local PSAP has been established, and must abide by the obligations listed below. The 9-1-1 services must be the same as those provided by the PSAP (e.g. E9-1-1 or, where that is not available, Basic 9-1-1), except as noted below. The source of each obligation is also provided.

Local exchange services

Wireless voice services

Local VoIP services

Fixed/native local VoIP services

Fixed/non-native and nomadic local VoIP services

Payphone services

Footnotes

Footnote 1

Basic 9-1-1 service enables callers to be connected to call takers in PSAPs, who dispatch the appropriate emergency responders. E9-1-1 service includes Basic 9-1-1, but also automatically provides 9-1-1 call takers with the telephone number and location of the caller.

Return to footnote 1

Footnote 2

A reseller of telecommunications services sells or leases a telecommunications service provided by a Canadian carrier to the reseller on a wholesale basis.

Return to footnote 2

Footnote 3

For example, in Telecom Decision 97-8, the Commission noted that resellers would meet certain of the service requirements that the Commission imposes on local exchange carriers (LECs), such as 9-1-1-related obligations, by virtue of the underlying LECs’ obligations. In Telecom Decision 2005-21, the Commission required local VoIP service providers to provide 9-1-1 service and imposed related obligations on them. In Telecom Decision 2012-137, the Commission modified a contractual condition for the service contracts of Canadian carriers, such that local VoIP service providers, and any or all of their wholesale customers and subordinate wholesale customers, must comply with the 9-1-1 obligations applicable to local VoIP service providers.

Return to footnote 3

Footnote 4

This is in addition to the AMP regime set out in the Act for violations of the Unsolicited Telecommunications Rules, and to Part 16.1, Division 1 of the Canada Elections Act, which gives the Commission the responsibility to administer and enforce statutory requirements with respect to voter contact calling services.

Return to footnote 4

Footnote 5

Specifically, new section 24.1 of the Act states that the offering and provision of any telecommunications service by any person other than a Canadian carrier are subject to any conditions imposed by the Commission, including those relating to (a) service terms and conditions in contracts with users of telecommunications services; (b) protection of the privacy of those users; (c) access to emergency services; and (d) access to telecommunications services by persons with disabilities.

Return to footnote 5

Footnote 6

For example, in Telecom Decision 97-8, the Commission required competitive local exchange carriers to provide 9-1-1 service and meet certain 9-1-1 obligations. In Telecom Decision 98-8, the Commission required local payphone service providers to provide 9-1-1 service and meet certain 9-1-1 obligations.

Return to footnote 6

Footnote 7

Order Issuing a Direction to the CRTC on Implementing the Canadian Telecommunications Policy Objectives, P.C. 2006-1534, 14 December 2006

Return to footnote 7

Footnote 8

Telecom Decision 95-2 states that all resellers and sharing groups must register with the Commission, regardless of the services being resold, with the exception of resellers that resell only toll services and sharing groups that share only toll services.

Return to footnote 8

Footnote 9

The cited policy objectives of the Act are 7(a) to facilitate the orderly development throughout Canada of a telecommunications system that serves to safeguard, enrich and strengthen the social and economic fabric of Canada and its regions; (b) to render reliable and affordable telecommunications services of high quality accessible to Canadians in both urban and rural areas in all regions of Canada; and (h) to respond to the economic and social requirements of users of telecommunications services.

Return to footnote 9

Footnote 10

Subparagraph 1(a)(ii) states that when relying on regulation, the Commission should use measures that are efficient and proportionate to their purpose and that interfere with the operation of competitive market forces to the minimum extent necessary to meet the policy objectives.

Return to footnote 10

Date modified: