ARCHIVED -  Telecom Order CRTC 97-1787

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Telecom Order

Ottawa, 1 December 1997
Telecom Order CRTC 97-1787
On 12 September 1997, Télébec ltée (Télébec) filed an application under Tariff Notice (TN) 156, as amended by TN 156A dated 14 November 1997, for approval of revisions to its General Tariff providing for a $2.50 per month rate increase for residence primary exchange services effective 1 January 1998.
File No.: Tariff Notice 156
1. In Regulatory Framework for Québec-Téléphone and Télébec ltée, Telecom Decision CRTC 96-5, 7 August 1996 (Decision 96-5), the Commission expressed the preliminary view that annual increases of $2.00 per month per local access line should be implemented by Québec-Téléphone and Télébec effective 1 January 1998 unless a particular local rate could be shown to be compensatory.
2. Télébec submitted that it was not proposing to increase monthly rates for business primary exchange services since it estimated that, on average, these were compensatory.
3. The company proposed to recover the revenue it would forego as a result of not increasing rates for business subscribers by increasing rates for residence subscribers by $0.50 more per month than the $2.00 per month allowed by Decision 96-5.
4. Télébec submitted that its proposal was consistent with Decision 96-5.
5. On 4 November 1997, the Commission issued interrogatories to which the company responded on 14 November 1997.
6. The Commission notes that Decision 96-5 does not support Télébec's claim that it is entitled to be compensated through higher residence rates for not increasing its business rates. The Commission therefore denies Télébec's proposal to increase residence rates by $2.50 per month.
7. Télébec indicated that increasing rates for business primary exchange services would be short-sighted since it expects, within a few years, to have to reduce rates for some of these services in response to competitive pressures.
8. The Commission finds that increases of $2.00 per month should apply to rates for residence primary exchange services effective 1 January 1998.
9. In light of the foregoing, the Commission orders that:
(a) The proposed tariff revisions to become effective on 1 January 1998 are approved on an interim basis subject to the rates for residence primary exchange services embodying an increase of $2.00 per month and not of $2.50 per month as proposed by the company.
(b) Télébec is directed to issue revised tariff pages within 10 days of the date of issuance of this Order.
Laura M. Talbot-Allan
Secretary General
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