Section 136.4 — Excise Tax Act: Definition telecommunications channel

In this section, telecommunications channel means a telecommunications circuit, line, frequency, channel, partial channel or other means of sending or receiving a telecommunication but does not include a satellite channel. For the purposes of this Part, where a person supplies a telecommunication service of granting to the recipient of the supply sole access to a telecommunications channel for transmitting telecommunications between a place in a particular province and a place in another province, the person is deemed to have made a separate supply of the service in each of those two provinces and in each province, if any, that is between those provinces; and the consideration for the supply in each province is deemed to be equal to the amount determined by the formula (A/B) × C where A is the distance over which the telecommunications would be transmitted in that province if the telecommunications were transmitted solely by means of cable and related telecommunications facilities located in Canada that connected, in a direct line, the transmitters for emitting and receiving the telecommunications, B is the distance over which the telecommunications would be transmitted in Canada if the telecommunications were transmitted solely by such means, and C is the total consideration paid or payable by the recipient for the sole access to the telecommunications channel.