AT&T gets backing from other telcos in rights-of-way fight with Toronto

The major players in telecom and cable are rallying behind AT&T Canada Corp in a battle that will test the CRTC’s resolve in bringing municipalities to heel when it comes to providing access to public rights-of-way. In a rare moment of solidarity, the various competitors are jointly calling on the commission to force the City of Toronto to renegotiate its contract with AT&T Canada, charging that it violates new rules that govern how access is to be provided to city sewers, streets and other rights-of-way. Toronto isn’t keen to alter the agreement, claiming such a change could cost local taxpayers about $20 million annually (NL, June 18/01). AT&T Canada says the contract should be rewritten, in light of a ruling released earlier this year that spells out principles to help carriers and municipalities negotiate terms and conditions for access (NL, Jan. 29/01). But Toronto isn’t budging. And while AT&T lines up its supporters from the telecom industry, Canada’s largest city is asking other municipalities from across the country to help with its lawsuit against AT&T. On another front, the Federation of Canadian Municipalities is asking the Federal Court of Canada to overturn the CRTC decision. "There’s no final decision on that," says Toronto city councillor Howard Moscoe. "We simply have a CRTC ruling, so I don’t know where they’re going with this." In frustration, AT&T has opted to take its grievance back to the CRTC by filing a Part VII application. Its strongest ally to emerge in this proceeding is Telus Corp, which claims that rather than complying with the commission’s new rules, some municipalities and public authorities "have simply ignored Decision 2001-23. "It appears that AT&T’s application exemplifies the degree of market power, which, if left unchecked by the commission, can be exerted by the municipalities in extracting terms and conditions from Canadian carriers," Willie Grieve, VP government and regulatory affairs writes in the telco’s June 28 filing. Telus goes on to warn that the CRTC should not allow the principles established in that decision "to be flouted, even by a large and sophisticated municipality like the City ." AT&T and its newfound allies, which include Bell Canada and the Canadian Cable Television Association, also fear that some municipalities will stick by their existing agreements until they come up for renewal, despite the fact that they may violate the new rules. Unless the commission takes a stronger stand on this issue, carriers warn their only recourse will be to file Part VII appeals for existing agreements and every time a new one is negotiated. As an example, Telus cites an incident in which it was unable to gain access to the Pattullo Bridge in British Columbia. It filed a Part VII application and subsequently worked out a rights-of-way pact with TransLink, the public agency that runs the bridge. "If the commission denies AT&T’s application, Telus believes that carriers will be required by municipalities to enter into agreements containing onerous terms and conditions inconsistent with the principles established in Decision 2001-23," the telco predicts. "If the commission is unwilling to review agreements, the sole recourse of carriers would be to file Part VII applications before entering into agreements, a remedy which time constraints do not always permit," Telus states. The backlog created by such an inundation would do no good for the industry, the communities or the regulator, the firm adds.Timing appears to be a major concern among all the carriers. Toronto-based GT Group Telecom Services Corp points out that "the importance of carriers gaining timely access to public highways on reasonable and fair terms can not be understated." Even a CLEC that is up for sale wants the matter resolved quickly. Vidéotron Télécom ltée says the CRTC should consider all municipal access agreements and replace them with new deals that incorporate the new rules. "Based on recent events and in part of on its own experience, VTL notes that municipalities and public authorities are reluctant to … review municipal access agreements in place on the basis of these (new) principles," Michel Messier, senior analyst of regulatory affairs writes. "VTL therefore submits that a clear signal should be given to the market that the principles, terms and conditions set out in Decision 2001-23 are a reference not only for the negotiation for access to municipal rights of way, but also for the re-negotiation of municipal access agreements signed before the release of Decision 2001-23 that are incompatible with these principles, terms and conditions."

AT&T gets backing from other telcos in rights-of-way fight with Toronto

News | 07/17/2001 4:00 am EDT

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