OTTAWA – After almost two years of consultations, the CRTC has announced its revisions to the regulatory framework for small incumbent local exchange carriers (ILECs).
The Commission says its determinations in this proceeding were made to ensure that the small ILECs’ customers continue to have access to reliable, innovative, and affordable services; provide the small ILECs with means and incentives to further increase efficiencies and innovation; and implement a regulatory framework for the small ILECs that minimizes regulatory burden to the greatest extent possible.
The revisions to the small ILECs’ regulatory framework fall under four regimes: price cap, subsidy, long distance (toll) interconnection, and forbearance.
Under the price cap regime, the Commission gave the go-ahead to add a new, fifth basket to its services structure. This new basket would include services offered by small ILECs to competitors on a wholesale basis, allowing them more flexibility on pricing and rate changes.
The Commission also decided to extend the same pricing rules to small ILECs as it has for the large ILECs, giving small ILECs the same kind of flexibility in the pricing of bundles, promotions and market trials. Small ILECs will also be allowed to use rate ranges and rate de-averaging in certain basket categories.
