GATINEAU — Bell Canada must make interexchange private line (IXPL) facilities available for lease to competitive local exchange carrier Fibernetics to be used in new local network interconnection (LNI) agreements between the two companies, the CRTC announced in a decision issued today.
In July 2020, Fibernetics sought relief from the Commission, saying it had attempted to negotiate a new LNI agreement with Bell for eight local interconnection regions (LIRs) where Fibernetics wanted to enter as a Type 1 CLEC. According to Fibernetics’ application, it approached Bell about leasing IXPL facilities for LNI in the eight LIRs (located in Ontario and Quebec), but Bell said it preferred an alternative method of LNI which Fibernetics claimed was unjustified and subjected the CLEC to significant costs and delays.
In its application, Fibernetics asked the Commission to order Bell to allow Fibernetics to lease IXPL facilities for LNI for the eight LIRs identified in its application.
In its decision today, the Commission has sided with Fibernetics, and is now directing Bell to make its IXPL facilities available to Fibernetics.
As an alternative, the Commission says Fibernetics is also to be permitted to use points of interconnection (POIs) for LNI arrangements within the eight LIRs in question in conjunction with tariffed low-speed competitor digital network (CDN) access services (which is a method Bell proposed in its reply to Fibernetics’ relief application, and which Fibernetics claims Bell had not offered before as an alternative method of LNI).
“[D]ue to Bell Canada’s reluctance to consider alternative forms of transport facilities for LNI arrangements during its negotiations with Fibernetics, the type of LNI arrangement between Fibernetics and Bell Canada, that is, IXPL services or low-speed CDN access services (to POIs inside an LIR), is to be determined by Fibernetics on an LIR-by-LIR basis in each of the eight LIRs,” writes the Commission in its decision.
In explaining its decision, the Commission notes seven of the eight LIRs for which Fibernetics is seeking LNI arrangements are small and rural in nature, and the specific method of LNI which Bell had proposed during its negotiations with Fibernetics was not appropriate for markets where forecasted LNI traffic volumes are not sufficiently large enough to justify the use and cost of such a method (information about the specific method was redacted in documents filed as part of this proceeding).
“In light of the information submitted by Fibernetics and Bell Canada, it appears that Bell Canada did not fully take into account traffic volume requirements in its negotiations with Fibernetics for LNI in the eight LIRs. The Commission considers that there is no merit to Bell Canada’s argument that it prefers to use a specific method, given that Fibernetics requires very little capacity. The Commission further considers that the cost of implementing such a method in these LIRs, as well as the resources and time required to do so, would be uneconomic and inefficient, and would have the effect of being a significant barrier to Fibernetics’ entry into these markets,” writes the Commission.
As a final note in its decision, the Commission says: “The Commission also considers that the issue of the forms and types of LNI that could be used in rural and low population density LIRs to ensure that competitive choice is extended to all Canadians could also be included in an upcoming interconnection proceeding.”
