ARCHIVED -  Telecom Order CRTC 97-946

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Telecom Order

Ottawa, 10 July 1997
Telecom Order CRTC 97-946
On 14 February 1997, BC TEL filed Tariff Notice 3593 (TN 3593) proposing to provide for local tandem trunk-side connection, as well as transiting, through a single point of interconnection (POI) for Wireless Service Operators (WSO) in the Vancouver and New Westminster Exchange Areas, as directed in Telecom Order CRTC 97-77 (Order 97-77) dated 17 January 1997.
File No.: Tariff Notice 3593
1. In support of its application BC TEL filed a cost study that listed two cost elements: i) Trunk Termination, including processing and switching components of the switch and ii) Local Calling Network Facilities, which it used to support the proposed service charge of $985 per trunk (Tariff Item 197-A E.2.d.).
2. Comments were received from Clearnet Communications Inc. (Clearnet) dated 15 March 1997, and Rogers Cantel Inc. (Cantel) dated 17 March 1997. Clearnet and Cantel stated that, contrary to Order 97-77, the cost study uses demand related rather than service related costs.
3. Clearnet objected to BC TEL's proposed restriction on transiting traffic to the exchange area, as well as prescribing the switch where tandem connection is available, stating that this was counter to the directives of the Commission and what other telephone companies provided.
4. BC TEL responded on 27 March 1997 stating that the individual cost elements include a trunk termination component (including processing and switching components), and a local facilities component. The company also submitted that, to offer trunk-side single point interconnection at any end office would require the company to incur significant additional costs for modifications to its existing network.
5. The Commission notes that in Order 97-77 BC TEL was directed to file proposed tariff pages "...that allow for local tandem trunk-side connection as well as transiting of traffic, such that one point of connection will allow for connection to the total local calling area. The associated rate element is to allow for the recovery of any one-time incremental cost, such as software and associated processor costs, to convert the switch to the tandem functionality."
6. The Commission notes that BC TEL, in its supporting cost study, provided no evidence of specific one-time costs to convert a switch to tandem functionality.
7. The Commission considers that it is reasonable that BC TEL pick the switch that it wishes to convert to the tandem functionality.
8. The Commission considers that the proposed Tariff Item 197-A E.2. needs to be clarified to indicate that transiting of local traffic also applies to the total local calling area.
9. In view of the above, the Commission approves TN 3593 on an interim basis with the following modifications:
(a) the second sentence of the first paragraph in Tariff Item 197-A E.2 is to be changed to read: "This arrangement provides for the tandeming and transiting of local traffic between a WSO's POI and the Company's Extended Service Areas defined for the Exchange Area where the WSO's POI is located." and the next sentence is to be deleted; and
(b) the proposed service charge in Tariff Item 197-A E.2.d. is to be deleted.
Laura M. Talbot-Allan
Secretary General
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