Note: This section contains the opinions of Axia NetMedia Corporation (“Axia”) with respect to the regulatory process associated with registering as a Canadian Carrier in accordance with the Telecommunications Act. Should any conflict exist between this document and the Telecommunications Act or any other Canadian Radio-television and Telecommunications Commission Order, Decision or supporting procedures, the Commission’s documentation should always be considered correct. Axia does not guarantee the quality, accuracy, completeness or timeliness of the nformation provided in this section. This section is provided on a “as is”, “without any warranties” and “without any liability” basis. Axia disclaims and excludes to the maximum extent permitted by applicable law all warranties, representations and conditions regarding the information provided in this Document. Users of this Document acknowledge and agree that this limitation on liability is reasonable in the circumstances.
The purpose of this section is to provide a high-level outline of requirements as interpreted by Axia NetMedia Corporation (“Axia”) for service providers (SPs) to use in developing plans to connect to the SuperNet.
Requirements for registration as a Canadian carrier
Axia expects that most Service Providers will be required to register with the Commission as a Canadian carrier.
A review of the Telecommunications Act (“the Act”)1 will clarify the requirement for a Service Provider to register as a carrier under the Act. The attached definitions may help with an assessment of applicability. The Act defines the following:
- “person” includes any individual, partnership, body corporate, unincorporated organization, government, government agency, trustee, executor, administrator or other legal representative;
and,
- “telecommunications common carrier” means a person who owns or operates a transmission facility used by that person or another person to provide telecommunications services to the public for compensation;” (emphasis added)
and,
- “telecommunications facility” means any facility, apparatus or other thing that is used or is capable of being used for telecommunications or for any operation directly connected with telecommunications, and includes a transmission facility;” (emphasis added)
and,
- “telecommunications service” means a service provided by means of telecommunications facilities and includes the provision in whole or in part of telecommunications facilities and any related equipment, whether by sale, lease or otherwise;
and,
- “telecommunications facility” means any wire, cable, radio, optical or other electromagnetic system, or any similar technical system, for the transmission of intelligence between network termination points, but does not include any exempt transmission apparatus. (emphasis added)
The full version of the Telecommunications Act can be found on the Department of Justice Canada website.
In summary, it is Axia’s belief that Service Providers who own or operate transmission facilities including local fibre or wireless distribution networks, as well as any fibre connecting the Service Provider to SuperNet at a PoP or MMF, must register with the Commission as a non-dominant carrier to be in compliance with the Act.
If a Service Provider provides services using transmission facilities including local fibre, TELUS copper or wireless distribution networks but does not itself own or operate these transmission facilities, the Service Provider may be subject to applicable re-sale rules and may need to register with the Commission as a reseller.
Commission guidelines for registration as a non-dominant carrier and filing of annual updates can be found on the CRTC’s website at: http://www.crtc.gc.ca/eng/INFO_SHT/t1016.htm.
Summary of the registration process
- A registration letter must be sent. Along with it, the Service Provider must identify the categories of services as set out in Telecom Decision CRTC 95-19. These categories relate for the most part to traditional telecommunications services such as Long Distance, local (voice) service, etc... An example registration letter resides on the CRTC’s website. A version of the letter can be found here. Although it is most likely an Service Provider would only offer Internet Services which are forborne, SP connection services are “data services,” which should be stated on the registration letter.
- An ownership report and affidavit, ensuring co performance with “Canadian Telecommunications Common Carrier Ownership & Control Regulations” must be submitted when registering and must be updated annually. An example of an ownership report can be found on the website. A version of the letter can be found here. Submission of the above registration letter supported by the Ownership report and Affidavit to the Commission is not an onerous process, yet it is sufficient, once filed, for an Service Provider to be confirmed a non-dominant carrier by the Commission and be added to their Industry List.
Annual updates required for a non-dominant carrier
- An updated ownership report and affidavit ensuring conformance with “Canadian Telecommunications Common Carrier Ownership & Control Regulations” must be submitted annually. The same document used at registration is updated reconfirming that ownership and control remains Canadian as necessary, including naming changes to directors, etc... and reused.
- The contribution regime, as updated in Telecom Decision CRTC 2000-745, concludes that all telecommunications providers must contribute to a national fund to subsidize local residential telephone service. Contribution is reported annually. Instructions and a sample annual report form reside on the website. Contribution is not assessed where annual revenues are less than $10 million.
Other regulatory considerations
- Although the Commission considers Internet services telecommunications services under the Act, it has already concluded that sufficient competition exists and has forborne from regulating Service Providers with respect to customer rates for Internet services and has forborne from regulating the majority of services provided by non-dominant carriers to customers.
- In addition to the registration and the annual reports, the Commission also seeks input with respect to the specific services offered, once annually, through the Telecommunications Industry Data Collection process for inclusion in the Commission’s annual Telecom Monitoring Report on the status of competition in the Canadian telecommunications industry.
- The definitions set out in section 5, as contained in the Act, make it clear that there are no restrictions with respect to who might register as a non-dominant carrier.
- As all rural and remote Alberta areas or locations may not be serviced by the larger carriers, it is expected that entrepreneurs, municipalities, small business, associations, etc. may need to provide local distribution facilities in order to extend high-speed services to their community, for the good of the community. In these cases, the party seeking to establish required local distribution facilities will need to follow the necessary processes in order to be confirmed by the CRTC as a non-dominant carrier. To assist, Axia has drafted some examples of what a requesting party would submit. Each example registration letter has a corresponding ownership report and affidavit.
