Telecom Decision CRTC 2017-15

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Ottawa, 19 January 2017

File number: 8640-B2-201609002

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 54 exchanges in Ontario and Quebec. The Commission denies Bell Canada's request for forbearance from the regulation of residential local exchange services in 104 exchanges in Ontario and Quebec.

Introduction

1. The Commission received an application from Bell Canada, dated 26 August 2016, in which the company requested forbearance from the regulation of residential local exchange services^{Footnote 1} in 158 exchanges in Ontario and Quebec. A list of the 158 exchanges is set out in Appendix 1 to this decision.
2. The Commission received submissions regarding Bell Canada's application from Bragg Communications Incorporated, operating as Eastlink (Eastlink); Cogeco Communications Inc. (Cogeco); DERYtelecom inc. (DERYtelecom); Execulink Telecom Inc. (Execulink); Hay Communications Co-operative Limited (Hay Communications); Quadro Communications Co-operative Inc. (Quadro); Quebecor Media Inc., on behalf of Videotron G.P. (Videotron); Rogers Communications Canada Inc. (RCCI); and TELUS Communications Company (TCC). The public record of this proceeding, which closed on 7 December 2016, is available on the Commission's website at www.crtc.gc.ca or by using the file number provided above.

Commission's analysis and determinations

3. Pursuant to the Commission's requirements in Telecom Decision 2006-15, Bell Canada provided evidence intended to support its forbearance request, including competitor quality of service (Q of S) results for the six months preceding its application, and a draft communications plan for the Commission's approval. The Commission has assessed Bell Canada's application based on the local forbearance test set out in Telecom Decision 2006-15 by examining the four criteria set out below.

Product market

4. Bell Canada is seeking forbearance from the regulation of 15 tariffed residential local exchange services. In Telecom Decisions 2012-79 and 2013-134, the Commission found that all of these services are eligible to be considered for forbearance. The 15 services are set out in Appendix 2 to this decision.
5. The Commission received no comments with respect to Bell Canada's proposed list of residential local exchange services.

Competitor presence test

6. Information provided by parties demonstrates that there are, in addition to Bell Canada, at least two independent, facilities-based telecommunications service providers operating in 54 of the exchanges in question, including providers of mobile wireless services.^{Footnote 2} Each of these service providers offers local exchange services in the market and is capable of serving at least 75% of the number of residential local exchange service lines that Bell Canada is capable of serving, and at least one, in addition to Bell Canada, is a facilities-based, fixed-line telecommunications service provider.
7. Accordingly, the 54 exchanges listed in Appendix 3 to this decision meet the competitor presence test.
8. However, the record of this proceeding demonstrates that in the 104 remaining exchanges in question, there are not at least two other independent, facilities-based telecommunications service providers operating in addition to Bell Canada that meet the criteria set out in paragraph 6 above. Accordingly, the Commission denies Bell Canada's request for forbearance from the regulation of residential local exchange services in the remaining 104 exchanges in Ontario and Quebec.

Competitor Q of S results

9. Bell Canada submitted its competitor Q of S results for the period of January to June 2016. The Commission has reviewed these results and finds that Bell Canada has demonstrated that during this six-month period it
   1. 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 its territory; and
   2. did not consistently provide any of those competitors with services that were below those Q of S standards.
10. Accordingly, Bell Canada meets the competitor Q of S criterion for this period.

Communications plan

11. The Commission has reviewed Bell Canada's proposed communications plan and is satisfied that it meets the information requirements set out in Telecom Decision 2006-15. However, Bell Canada should change the mailing address for the Canadian Radio-television and Telecommunications Commission to "Ottawa, Ontario K1A 0N2."
12. The Commission approves the proposed communications plan with the revision noted above and directs Bell Canada to provide the resulting communications materials to its customers, in both official languages where appropriate.

Conclusion

13. Bell Canada's application regarding the 54 exchanges in Ontario and Quebec set outin Appendix 3 meets all the local forbearance criteria set out in Telecom Decision 2006-15.
14. 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 in these exchanges, of the residentiallocal exchange services listed in Appendix 2 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.
15. Pursuant to subsection 34(2) of the Act, the Commission finds as a question of fact that these residentiallocal exchange services are subject to a level of competition in these exchanges sufficient to protect the interests of users of these services.
16. 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 of these residentiallocal exchange services in these exchanges would be unlikely to unduly impair the continuance of a competitive market for these services.
17. 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 and future local exchange services (as defined in Telecom Public Notice 2005-2), as they pertain to residential customers only, in the 54 exchanges in Ontario and Quebec listed in Appendix 3, 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 to issue revised tariff pages^{Footnote 3} with the Commission within 30 days of the date of this decision.
18. In Telecom Regulatory Policy 2011-291, the Commission determined that the large incumbent local exchange carriers would no longer receive subsidies for residential network access services (NAS) in high-cost exchanges for which the Commission has granted forbearance from regulation. Therefore, in accordance with the directions in Appendix B to Telecom Regulatory Policy 2011-291, Bell Canada is to stop reporting to the Central Fund Administrator any high-cost residential NAS associated with the 54 exchanges listed in Appendix 3, effective the date of this decision.

Secretary General

Related documents

• Bell Aliant Regional Communications, Limited Partnership – Application for forbearance from the regulation of residential local exchange services, Telecom Decision CRTC 2013-134, 18 March 2013
• Bell Aliant Regional Communications, Limited Partnership – Application for forbearance from the regulation of residential local exchange services, Telecom Decision CRTC 2012-79, 8 February 2012
• Obligation to serve and other matters, Telecom Regulatory Policy CRTC 2011-291, 3 May 2011; as amended by Telecom Regulatory Policy CRTC 2011-291-1, 12 May 2011
• 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
• 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 2017-15

Exchanges for which Bell Canada requested forbearance from the regulation of its residential local exchange services

Ontario

Adolphustown

Ailsa Craig

Algoma Mills

Amherstburg

Arnprior

Arthur

Bath

Beaverton

Belle River

Blenheim

Bourget

Brechin

Brighton

Campbellford

Campbellville

Cannington

Centralia

Chesley

Chesterville

Colborne

Courtright

Crediton

Deseronto

Dresden

Durham

Eastwood

Fergus

Freelton

Gananoque

Grand Valley

Gravenhurst

Harrow

Harrowsmith

Hastings

Havelock

Ilderton

Ingleside

Iron Bridge

Iroquois

Jarvis

Kemptville

Kingsville

Lakefield

Lancaster

Leamington

Long Sault

Lucan

Lynden

Madoc

Maitland

Markstay

Marmora

Massey

McGregor

Newburgh

Nobel

Norwich

Odessa

Oil Springs

Omemee

Otter Lake

Otterville

Owen Sound

Parkhill

Pelham

Perth

Petrolia

Port Carling

Port Sydney

Prescott

Renfrew

Ridgetown

Ridgeway

Rockwood

Rosseau

Southampton

Spanish

St. Isidore

Stevensville

Sunderland

Thamesville

Thessalon

Thornbury

Thurlow

Tilbury

Verner

Verona

Vineland

Warren

Watford

Waubaushene

Welcome

Wellington

West Lincoln

Wheatley

Whitefish

Whitefish Falls

Williamsburg

Woodville

Wyoming

Quebec

Acton Vale

Bergeronnes

Berthierville

Chambord

Champlain

Chartierville

Chelsea

Clermont

Desbiens

Eastman

Les Escoumins

Girardville

Hemmingford

Howick

Knowlton

La Doré

La Patrie

Lac-Bouchette

Lanoraie

Laurierville

Leeds

L'Île-Verte

Lyster

Metabetchouan

Ormstown

Petite-Rivière-St-François

Rawdon

Richmond

Rivière-Bleue

Sacré-Cœur

Sault-au-Mouton

Shawbridge

Squatec

St-Adolphe-d'Howard

St-André

St-Calixte-de-Kilkenny

St-Damase

St-Donat-de-Montcalm

Ste-Anne-de-Portneuf

Ste-Catherine

St-Éleuthère

Ste-Madeleine

St-Ferdinand-d'Halifax

St-Fulgence

St-Gédéon

St-Irénée

St-Jean-de-Dieu

St-Malo

St-Mathieu

St-Pascal

St-Pie

St-Urbain

Sutton

Tadoussac

Tring Jonction

Waterloo

Wickham

Yamachiche

Appendix 2 to Telecom Decision CRTC 2017-15

Local exchange services eligible for forbearance from
regulation in this decision (for residential customers only)

Appendix 3 to Telecom Decision CRTC 2017-15

Exchanges that meet all the local forbearance criteria set out in Telecom Decision 2006-15

Ontario

Beaverton

Brechin

Centralia

Durham

Eastwood

Grand Valley

Ingleside

Jarvis

Lakefield

Madoc

Maitland

Norwich

Otterville

Owen Sound

Pelham

Southampton

Spanish

Thessalon

Thornbury

Vineland

Watford

Waubaushene

Wellington

Quebec

Acton Vale

Bergeronnes

Chambord

Champlain

Chartierville

Desbiens

Eastman

Les Escoumins

Knowlton

La Doré

La Patrie

Laurierville

Lyster

Metabetchouan

Petite-Rivière-St-François

Sacré-Cœur

Sault-au-Mouton

St-André

St-Damase

Ste-Anne-de-Portneuf

Ste-Catherine

St-Éleuthère

Ste-Madeleine

Ste-Irénée

St-Malo

St-Pascal

St-Pie

St-Urbain

Sutton

Tadoussac

Waterloo

Date modified:

2017-01-19