Microcell challenges Bell on argument over CLECs’ inclusion in expanded LCA

Microcell Telecommunications Inc. has taken Bell Canada to task over its argument that CLECs should be required to pay into a cross-subsidy pool from which ILECs and IXCs would be able to draw to recoup foregone lost toll revenue (RoW, Nov. 25/02 and Oct. 28/02). The Montreal-based wireless operator says the telco’s argument over the implementation of an expanded local calling area (LCA) isn’t logical and at times makes contradictory conclusions. The comments are part of the ongoing review and vary petition filed by Microcell on October 10 over the framework for expanded LCAs, established in Telecom Decision 2002-56. Microcell notes that Bell’s argument in favour of ILEC core exchange subscribers, who receive no benefit from an expanded LCA, paying rate increases that directly benefit ILEC outlying exchange subscribers doesn’t make sense. "he implication being that if it is okay to charge an ILEC subscriber who derives no direct benefit from the expanded LCA, then it should be okay to charge a CLEC customer who derives no direct benefit either," it writes. The wireless operator says this kind of argument has no grounds in logic in light of the supposed economic benefit to all subscribers in the expanded LCA. "Microcell asks if we might not be permitted to charge ILECs’ subscribers an appropriate amount each time Microcell improves wireless coverage in a particular locale, on the basis that ILECs’ subscribers will surely derive indirect economic benefits from this investment in their communities," it writes. Bell chose not to dispute all of Microcell’s assessment and only concentrated on a third issue, which focused on the assumption that CLEC subscribers would benefit from an expanded ILEC LCA. Despite that, Microcell believes that the first two points of its argument demonstrate inequity in the original decision, and therefore warrants variance. "To be blunt, a carrier should not be called upon to contribute funds it does not have from rate increases that did not occur into a subsidy pool from which it cannot make claims," Microcell concludes. Small rift with Telus’ argument In its reply comments, Microcell notes that while it received general support from Telus Corp. over its concerns with the LCA framework, it didn’t agree with the western-based telco’s argument on the inseparability of CLECs and alternative providers of long distance services (APLDS). Telus believes that the CLEC surcharge obligation can’t be separated from the APLDS component of the LCA surcharge. "Whereas, separating the two may create difficulties within the policy mindset of Telus, the task is a rather straightforward one in practice," Microcell writes. "Nothing either procedurally or administratively, prevents the commission from relieving CLECs of their obligation to contribute presumed local rate increases to ILEC LCA expansion cross-subsidy pools, while leaving in place the right for APLDS to make claims from such pools." To clarify its position, the wireless carrier says that it isn’t strictly set on the implementation of its opt-in-to-both/opt-out-of-both remedy. It is only interested in making sure that CLECs’ mandatory participation in the program is removed from the new policy. The administrative complexity associated with the expanded LCA framework and the errors in fact noted in its petition may work in tandem, Microcell states. It points out that the City of Ottawa’s comments are particularly compelling in that it has the most to benefit from an expanded LCA, but wishes to implement it in the shortest possible timeframe with the least amount of paperwork. The wireless carrier highlights the City of Ottawa’s analysis of the two contrasting elements in weighing the financial impacts of CLECs’ mandatory participation in the process and the added administrative burden associated with their participation.

Microcell challenges Bell on argument over CLECs’ inclusion in expanded LCA

News | December 9, 2002

Unlock all the Canadian telecom, broadcasting and digital media news you need.

FREE TRIAL

SUBSCRIBE

Inside The Wire Report

Information

Hill Times Publishing

Get in Touch With Us