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Ottawa, 19 January 2011

KMTS – Call Number Display

File numbers: Tariff Notices 61 and 61A

1.         The Commission received an application by KMTS, dated 16 December 2010 and amended 21 December 2010, in which the company proposed revisions to its General Tariff item 490 – Custom Calling Features, in order to correct an error in the rate charged for its residential Call Number Display feature.

2.         KMTS submitted that, in a previous application filed on 29 September 2010, it had proposed a rate increase from $7.95 per month to $10 per month for its residential Call Number Display feature, effective 1 October 2010.[1] However, KMTS submitted that the new rate should have been $8.95 per month. The company indicated that it was not providing an economic study for the revised rate as it is lower than the rate approved for Bell Aliant Regional Communications, Limited Partnership.

3.         KMTS submitted that once it had noticed the error, it had issued a credit in December 2010 to each of its affected residential customers for the entire amount paid above $8.95, that is, $1.05, for the November 2010 billing cycle. KMTS also submitted that it had applied the $8.95 charge in its December 2010 billing cycle.

4.         KMTS requested that the Commission ratify the $1.05 credit granted to its residential Call Number Display customers and the $8.95 rate that was billed for the service in December 2010, pursuant to subsection 25(4)[2] of the Telecommunications Act.

5.         The Commission notes that, pursuant to the regulatory framework set out for small incumbent local exchange carriers (ILECs) in Telecom Decision 2006-14, optional services such as Call Number Display are assigned to the fourth service basket and rates for services in this basket are allowed to increase up to any rate approved by the Commission for the same service. The Commission considers that the company’s proposal is consistent with the regulatory framework for small ILECs set out in that decision since the proposed rate is comparable with the one charged by Bell Aliant Regional Communications, Limited Partnership for its Call Display service.

6.         Accordingly, the Commission approves on an interim basis KMTS’s proposal to revise the Call Number Display rate for residential customers in its General Tariff, effective the date of this order. The Commission will address the ratification request and, if necessary, any other issues related to the application in a subsequent order.

Secretary General

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Footnotes:

[1]     This previous application was filed as a Group A filing pursuant to Telecom Decision 2008-74.

[2]     Subsection 25(4) of the Telecommunications Act states that the Commission may ratify the charging of a rate by a Canadian carrier otherwise than in accordance with a tariff approved by the Commission if the Commission is satisfied that the rate was charged because of an error or other circumstance that warrants the ratification.

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