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CRTC Press Release ... 

CRTC Directs Funds in Deferral Accounts to Expand Rural Broadband and Services for Canadians with Disabilities

OTTAWA and GATINEAU, Jan. 17 - The Canadian Radio-television and Telecommunications Commission (CRTC) today approved several initiatives that will benefit Canadians with disabilities and expand broadband services to rural and remote communities. The major local telephone companies were also directed by the Commission to finalize proposals for the dispersal of the funds in their deferral accounts.

"Today's decision will not only make telecommunications services more accessible to all Canadians, but also serve to enhance social and economic development in underserved communities," said Len Katz, the CRTC's Vice-Chairman of Telecommunications.

The proposals approved by the Commission include initiatives to improve accessibility to telecommunications services for persons with disabilities in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario and Quebec. In developing their proposals, the companies consulted with federal and provincial governments, national and provincial organizations representing persons with disabilities, and researchers in the field.

With this decision, as well as one issued in July 2007, funds will also be used to expand broadband services to more than 350 rural and remote communities in British Columbia, Alberta, Manitoba, Ontario and Quebec.

Any funds remaining in the deferral accounts will be rebated to the relevant residential subscribers living in urban areas in these provinces. The Commission directed the major local telephone companies to file, by March 25, 2008, proposals outlining how rebates could be most effectively made both in terms of benefits to customers and minimal disruption to companies.

It is estimated that over $650 million has accumulated in the deferral accounts since they were created in 2002. Bell Aliant (in Ontario and Quebec), Bell Canada, MTS Allstream, SaskTel and TELUS were required to place into their accounts an amount equal to the revenue reductions that would otherwise have resulted from the application of the price cap formula.

The CRTC

The CRTC is an independent, public authority that regulates and supervises broadcasting and telecommunications in Canada.

Telecom Decision CRTC 2008-1
http://www.crtc.gc.ca/eng/whatsnew.htm

Reference documents:
Telecom Decision CRTC 2007-50
http://www.crtc.gc.ca/archive/ENG/Decisions/2007/dt2007-50.htm
News release, "CRTC directs funds in deferral accounts to expand rural broadband and services for Canadians with disabilities," February 16, 2006
http://www.crtc.gc.ca/eng/NEWS/RELEASES/2006/r060216.htm
Telecom Decision CRTC 2006-9
http://www.crtc.gc.ca/archive/ENG/Decisions/2006/dt2006-9.htm
Telecom Public Notice CRTC 2006-15
http://www.crtc.gc.ca/archive/ENG/Notices/2006/pt2006-15.htm
Telecom Public Notice CRTC 2004-1
http://www.crtc.gc.ca/archive/eng/notices/2004/pt2004-1.htm

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Backgrounder on deferral accounts

About deferral accounts

In 2002, the Commission set out its price cap framework. This included rules governing the rates charged to residential and business consumers as well as to competitor companies by the major local telephone companies. One of the elements of the price regulation regime was the deferral account.

Price cap regulation places a ceiling on prices a company can charge its customers. At the same time, in order to avoid an adverse impact on local competition as a result of mandated rate reductions under the price cap framework, the Commission required each major local telephone company to create a deferral account. The companies were requested to place into those accounts amounts equal to the revenue reductions that would otherwise have resulted from an application of the price cap formula.

In 2006, the Commission determined that the funds that had accumulated in the deferral accounts should be used for the expansion of broadband (high-speed Internet) services and for initiatives to improve accessibility to telecommunications services for persons with disabilities. The Commission also concluded that any funds remaining after these initiatives had been approved should be rebated to the companies' residential local service subscribers in non-high-cost serving areas.

In 2007, the Commission revised its price cap framework and eliminated the deferral account mechanism. As such, no funds will be accumulated in the deferral accounts on a going forward basis.

Accessibility initiatives

The Commission has approved several proposals to improve accessibility to telecommunications services for persons with disabilities in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario and Quebec.

The proposals included initiatives to:

- introduce Internet Protocol Relay, a text-based tool that would allow persons who are deaf, hard of hearing or have difficulty speaking to communicate through the telephone system with hearing persons through a relay agent;
- introduce Video Relay Service, a service that would allow a person using sign language and another person using voice to communicate through a relay agent via high-speed Internet and video camera;
- improve Voice Activated Dialing service;
- enhance Directory Assistance;
- improve access to certain telecommunications services for persons with sight and mobility disabilities;
- improve accessibility to the websites of some of the major local telephone companies;
- establish a single point of contact for persons with disabilities to receive customer service tailored to the specific needs of the customer;
- conduct research into the needs of persons with disabilities during the development process of new products and services; and
- provide free teletypewriter (TTY) units to all Transition Houses in Saskatchewan.

Broadband expansion

The Commission has approved initiatives to expand broadband services to the following rural and remote communities, or nearby areas:

Ontario

Acton
Ailsa Craig
Apsely
Armstrong
Bancroft
Barry's Bay
Beachville
Bluewater Beach
Blyth
Calabogie
Campbellville
Cartier
Clinton
Cloud Bay
Cobden
Creemore
Denbigh
Dorion
Dublin
Dundalk
Eagle River
Echo Bay
Feversham
Flesherton
Fort Erie
Gilmour
Goderich
Gogama
Golden Lake
Goulais
Kaministiquia
Lafontaine
Lucan
MacDiarmid
Madoc
Magnetawan
Marathon
Markdale
Maynooth
McKellar
Meaford
Morson
Nakina
Newtonville
Northbrook
Otter Lake
Oxdrift
Parry Sound
Pass Lake
Pelee Island
Pembroke
Petawawa
Pickle Lake
Plevna
Pointe au Baril
Ridgeway
Sauble Beach
Sault St. Marie-Airport
Sebright
Selkirk
Shebandowan
South River
Stevensville
St-Joseph Island
Stratton
Tamworth
Thornbury
Vermilion Bay
Wabigoon
Wawa
Wiarton
Winona

For further information: Media Relations: http://support.crtc.gc.ca/CRTCSubmissionMU/forms/Mediarelations.aspx?lang=e, (819) 997-9403, Fax: (819) 997-4245; General Inquiries: (819) 997-0313, TDD: (819) 994-0423, Fax: (819) 994-0218, Toll-free No.: 1-877-249-CRTC (2782), TDD - Toll-free No. 1-877-909-CRTC (2782); On-line services http://support.crtc.gc.ca/crtcsubmissionmu/forms/main.aspx? lang=e; These documents are available in alternative format upon request.