Telecoms say access to utility poles needed if costs are to be kept in check

Both ILECs and CLECs are siding with the Canadian Cable Television Association (CCTA) as it seeks to overturn a Federal Court of Appeal decision on access to utility poles (NL, July 30/01). All parties agree that maintaining vital national telecommunications and broadcasting systems requires pole access. This past summer, the court upheld a challenge to CRTC Decision 1999-13 from a consortium of Ontario power companies. The utilities had argued the commission does not have jurisdiction over pole access because the companies are provincially regulated. Allowing the ruling to stand would be tantamount to disaster, the CCTA states in its application for leave to appeal to the Supreme Court of Canada. "The effect of the decision would be to eliminate, or at best balkanize, regulatory supervision over a vital element of this infrastructure at a time when it is of unparalleled importance to Canada’s future," the association writes. Telcos have rallied behind the CCTA. Robert Fabes, SVP and general counsel at GT Group Telecom Services Corp., warns about potential financial insecurity in an affidavit filed with the court."A consistent regime of national regulation of access to support structures is extremely important," he offers. "If support structures may suddenly come under or disappear from federal regulation by virtue of whether they happen to be owned or managed at that moment by a telecommunications carrier or an electrical power utility, GT and its telecommunications counterparts will be unable to make any firm or long standing economic decisions about those support structures." Canada’s largest telephone company worries about the proliferation of street furniture if the current regime is abandoned. Sheridan Scott, chief regulatory officer of Bell Canada, also submitted a sworn statement. "In the absence of access to the support structures of electric utilities under mutually acceptable terms and conditions, telephone and telecommunications service providers, including Bell Canada and its affiliates, would be left no option but to consider construction of duplicate support structures, to the aesthetic and environmental detriment of cities, towns and villages in which they operate and at higher cost to Canadian users of telephone and telecommunications services or, worse, would be unable to deliver services to customers in such locations," she writes. Scott says that while Bell has an extensive network of its own, it does rely on access to outside poles in some cases. For several years, for example, the company has had joint-use agreements with Ontario Hydro and other power firms. Access refused by some utilities Fabes reports that Group Telecom has had its fair share of problems in dealing with utility companies. "GT has been refused access to support structures by several electrical power companies across Canada," his affidavit states, "thus delaying or otherwise interfering with our ability to offer competitive telecommunication services. We have also faced demands from several electrical power companies for unreasonable fees and other terms and conditions for access to their poles." A letter from Industry Canada assistant deputy minister Michael Binder is included in an affidavit from Peter Nielsen, VP government and industry relations at Shaw Communications Inc. In the letter, Binder argues that withholding access to power company poles could drive up telecom costs and with them, local rates and the supporting subsidy. The 19 utility companies have until the end of this month to file their comments. The CCTA can reply one week later. A panel of three judges is expected to rule on the leave to appeal early next year. If the leave is granted, the actual appeal would proceed in 2002.

Telecoms say access to utility poles needed if costs are to be kept in check

News | October 22, 2001

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