Telus reorganization leads to call for forbearance outside of traditional markets

Telus is asking the CRTC to refrain exercising its powers in non-ILEC territory, as the western telco moves into new markets across Canada. Bell Canada and its affiliates are hopeful the commission will grant it similar dispensation. The move comes as Telus finalizes the amalgamation of its various units into one corporate structure. By next January, Telus Communications Inc (TCI), Telus Communications (BC) Inc (TCBC) and Telus Mobility Cellular Inc (TMCI) will be merged into one firm under the moniker, Telus Communications Inc. The company is asking the CRTC to grant forbearance with regards to services provided by non-dominant Canadian carriers, in local competition and in local payphone competition. "Following the arrangement which brought together the former BC Telecom Inc and Telus Corp, it has been determined by management that the number of subsidiaries in the BCT.Telus group of companies gives rise to undue complexities and administrative costs," Willie Grieve, VP government and regulatory affairs writes to the commission in the company’s April 17 application. "A restructuring process was initiated by BCT.Telus. To date, this process has resulted in the amalgamation of a number of subsidiary companies, with additional legal reorganizations scheduled to occur in the latter half of 2000 and to be completed by the end of the first quarter of 2001," the document adds. "These reorganizations will further reduce the number of separate corporations, streamline operations and reduce administrative costs compared to the current structure." The company is filing the application in advance of the restructuring because it believes the forbearance order is needed for the amalgamation to go ahead. Telus has told the CRTC it is likely to file an application to merge the tariffs and price cap plans of TCBC and TCI. A similar plan, merging the tariffs and price caps of Telus Communications (Edmonton) Inc and TCI, was approved by the commission. Currently the CRTC issues separate decisions on the operations of TCBC and TCI, even though most are similarly worded. The Telus application is endorsed by the other major telcos. Teresa Muir, Bell’s director of regulatory affairs, filed a submission on behalf of her company, Island Telecom Inc, Maritime Tel & Tel Ltd, MTS Communications Inc, NBTel Inc, NewTel Communications Inc and Saskatchewan Telecommunications Inc. The four-paragraph response to Telus’ 26-page application, dated May 25, states: "in order to ensure equitable treatment, the companies submit that the commission’s findings should be applied simultaneously to all telecommunications companies currently regulated by the commission." Bell and its allies believe the CRTC can rule without resorting to a public notice. If the commission disagrees, the telcos wish to be named as parties to the proceedings. Telus argues that while it may be the dominant player in Alberta and BC, it is quite weak in other parts of the country. Indeed, companies that operate strictly as CLECs have established themselves much more strongly than the older telco has. To that end, the company is urging the CRTC not to re-regulate its services. "It is submitted that like other new entrants in the markets in question, the amalgamated entity, despite its dominant position within its traditional operating territory will enjoy little, if any market power in the non-ILEC territory," the firm writes. It says forbearing from regulation would be consistent with the objectives of the Telecommunications Act and with previous commission decisions. With respect to marketing and bundling safeguards, TCI submits that existing rules will effectively prevent abuse, Telus says. In response, the CRTC issued Telecom PN 2000-98 on July 14, seeking comments from interested parties. Submissions will be received throughout the fall, with a final decision likely early next year.

Telus reorganization leads to call for forbearance outside of traditional markets

News | July 31, 2000

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