Bell DSL plan on hold until CRTC examines deferral account clearance

Aproposal by Bell Canada to use funds from its deferral account is being suspended while the CRTC looks at broader issues of the accounts. The original suggestion is the subject of vehement discussion on both sides. Last month the ILEC submitted an application that would have allowed it to use money from the deferral account to roll out DSL into unserved regions of its territory (NL, Dec. 8/03). Just before Christmas Microcell Telecommunications Inc. asked the commission to grant a one-month extension on the comment period. The regulator replied on Christmas Eve that the Bell filing was suspended pending a CRTC public notice on clearing the deferral account. "Our proposal will be addressed in that more general proceeding," Robert Farmer, VP regulatory matters for Bell, emails Network Letter. "The CRTC indicated in its letter only that they would issue a public notice ‘in the new year’. We expect to see it this month, submissions likely due in March." Despite that delay, comments are already trickling in. Telcos, cablecos, consumers’ groups and private citizens have let their thoughts be known. Competitors, not surprisingly, oppose the move. "It is obvious that Bell Canada is not about to invest up to $170 million in any project that will not provide a healthy profit," Tony Fiorini, president of Cable Cable Inc. of Fenelon Falls ON, writes to the commission. "These profits will ultimately ‘deepen the pockets’ of Bell and will almost certainly help them to suppress competition from much smaller companies who have invested their own dollars to bring broadband into the communities they serve. Bell Canada does not need any financial help from public sector funds in order to expand its huge competitive advantage." A Quebec-based company makes a similar argument. It is worried that the ILEC wants to move into regions not funded by the federal Broadband for Rural and Northern Development (BRAND) project, and two provincial plans, Connect Ontario Broadband Regional Access (COBRA) and Quebec’s Village Branchés. "Xit Telecom submits that Bell Canada would confer itself undue self preference, particularly against that of other competitors, if it were to be the sole entity to be capable of making use of its deferral account to design, build, operate and maintain DSL infrastructure in communities which would not ultimately qualify for BRAND, Cobra or Village Branchés subsidies," Robert Proulx, president of the Trois-Rivières-based firm, writes. He suggested his company should be able to get its hands on deferral account money to roll out DSL in its service area. Support for the plan comes from a small community near Ontario’s Georgian Bay. A local resident took it upon himself to write the commission. "We in the Township of Carling endorse this proposal on the part of Bell Canada and respectfully request that the CRTC approve this broadband coverage proposal for rural areas with expenditure via the government created ‘deferral account’," Jim Bunsch writes.Susan Murphy, clerk administrator for the township, tells NL Bunsch acted as a private citizen but that the town council backs him all the way. The community can only access the Internet through dial-up service currently, she adds. The Public Interest Advocacy Centre, acting on behalf of several consumers’ groups, says the telco’s suggestion is not in keeping with the price cap ruling that initiated the deferral accounts to begin with."Bell’s application is contrary to the purpose of the price cap formula because it fails to implement price changes that track changes in the company’s unit costs," PIAC’s Michael Janigan writes. "The application also proposes to use deferral account funds to benefit business customers. Telecom Decision 2002-34, Regulatory Framework for Second Price Cap Period, requires that funds in the deferral account be used to benefit residential subscribers."

Bell DSL plan on hold until CRTC examines deferral account clearance

News | 01/19/2004 5:00 am EST

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