RE: Regulatory Recovery Surcharge for Canadian corporations

["Todd Grand" <tgrand () tgrand com>]

These costs are related to federal, provincial and/or municipal mandates,
programs and requirements such as provincial 9-1-1 fees, spectrum
acquisition, licensing charges, and contribution charges to help subsidize
telephone service in rural and remote areas. These costs are not taxes or
amounts that the government requires carriers to collect. The specific
amount of these costs can vary as the fees/costs of government
mandates/programs change.

I would have them outline what regulatory costs they incur, as they have to
justify the extension of these costs, or in my opinion it is a form of
fraud.

Todd Grand 


-----Original Message-----
From: NANOG [mailto:nanog-bounces+tgrand=tgrand.com () nanog org] On Behalf Of
Eric Dugas
Sent: Tuesday, March 14, 2017 10:00 AM
To: Graham Johnston <johnstong () westmancom com>
Cc: NANOG <nanog () nanog org>
Subject: Re: Regulatory Recovery Surcharge for Canadian corporations

> From what I've gathered so far, every other carriers that we use are either
invoicing us from Canada or outside the US (e.g. Telia from Vancouver, BC
and Cogent from Toronto, ON).

  

A couple of minutes after firing my first email, our rep called me to follow
up. He'll escalate this as far as he can with his COO and CFO and suggested
two scenarios.  

  
On Mar 14 2017, at 10:41 am, Graham Johnston <johnstong () westmancom com>
wrote:  

> We don't explicitly pay a charge like this for the transit bandwidth 
> we
purchase in Toronto from an international carrier, and I doubt that it is
built into the cost without any mention of it. I've never heard of such a
thing.

>

> Graham Johnston
Network Planner
Westman Communications Group
204.717.2829
johnstong () westmancom com

>

> \-----Original Message-----
From: NANOG [mailto:nanog-bounces () nanog org] On Behalf Of Eric Dugas
Sent: Tuesday, March 14, 2017 9:04 AM
To: NANOG
Subject: Regulatory Recovery Surcharge for Canadian corporations

>

> I recently negotiated a new contract with a tier1 for IP transit in 
> Canada
and
just got the invoice. I saw a "new" Regulatory Recovery Surcharge of 10% the
MRC (before taxes) that I've never seen before. Do any of my Canadian
fellows on this list are paying this outrageous surcharge?

>

>

>

> Other than saying "it's in the MSA", our rep, their tax and billing
department
are not useful at all. The actual rate is not specified anywhere in the MSA
or in the contract.