Bell Canada still awaiting FCC approval on request for non-dominant status

A decision on Bell Canada’s application to be reclassified as a non-dominant carrier has been delayed in the U.S. following the appointment of a new chair, and senior staff changes at the Federal Communications Commission (FCC). The proceeding, which stems from a 17-month-old application filed by Bell Canada, wrapped up late last year but the election of a new U.S. president has led to changes in the senior ranks of the American regulator, including the appointment in January of Michael Powell as chair. A spokesman with the FCC told Network Letter there’s no timeframe for when a decision on Bell’s request will be rendered. Executives at Bell are still optimistic the FCC will approve its application to be removed from the list of foreign dominant carriers (NL, March 8/00, Sept. 11/00). Carriers that fall within this category are required to publicly disclose connecting agreements with American carriers. That means competitors like AT&T Corp can obtain copies of agreements between Bell and its customers. AT&T was the only company that formally opposed Bell’s application. But David Kidd, VP of regulatory law at Bell, acknowledges that their application isn’t as important today as when it was first filed. He notes that the FCC’s international bureau has been moving towards increased deregulation for foreign carriers, which is making it easier for companies like Bell to do business with American customers. "At the time," he says, "we were concerned and still are concerned about our contracts having to be filed, and the possibility of competitors perusing those agreements, which we thought wasn’t in anyone’s advantage." Affiliated carrier agreements and certain tariffs would be subject to less scrutiny under the FCC’s new rules. "The tariffs and all of that stuff is being changed as we speak," Kidd explains to Network Letter. "There used to be a requirement to file tariffs on the dominant routes. But now they’re saying they’re going to absolve all carriers of that, whether dominant or non-dominant. "It’s gradually becoming less of an important issue for us by virtue of some of the deregulatory mechanisms the FCC has imposed," he adds. "But it would be nice to win it. I think there are some consequences there, we would like to see it happen, but it’s not perhaps as big or important a file as it once was." From a purely image perspective, however, the FCC decision is important. Bell has claimed that it is not a dominant carrier in the Canadian market, although it is if one excludes British Columbia and Alberta from the calculation. Following Bell’s purchase last year of Aliant Inc, the carrier argued that its market share in Canada is irrelevant to its application because it’s not large enough to stifle competition in the U.S. Since Bell’s share of the local exchange market exceeds 50 per cent, it technically exceeds the FCC’s threshold for being classified as non-dominant. As a result, Bell chose instead to focus on the second prong of the FCC test: that it lacks sufficient market power to adversely affect competition in the U.S. Kidd says he doubts Bell will have any more dealings with the FCC in the foreseeable future, once this proceeding wraps up. He notes that most regulatory issues in the U.S. would concern its affiliate, Teleglobe Inc, which has already been removed from the FCC’s dominant carrier list.

Bell Canada still awaiting FCC approval on request for non-dominant status

News | May 7, 2001

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