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Telecom Decision
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Ottawa, 24 April 1984
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Telecom Decision CRTC 84-12
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NorthwesTel Inc. - Implementation of Decision Permitting Attachment of Subscriber-Provided Terminal Equipment
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For related documents see: CRTC Telecom Public Notices 1979-35, 30 November 1979; 1980-11, 1 February 1980; 1980-14, 25 February 1980; 1980-38, 5 August 1980; 1981-8, 10 March 1981; 1981-21, 29 May 1981; 1981-25, 19 June 1981; 1981-29, 29 July 1981; 1981-32, 25 September 1981; 1981-36, 20 October 1981; 1981-37, 22 October 1981; 1983-29, 23 March 1983; 1983-30, 23 March 1983; 1983-64, 19 October 1983; and Telecom Decisions CRTC 80-13, 5 August 1980; 81-19, 22 October 1981; 81-21, 2 November 1981; 81-23, 16 November 1981; 82-14, 23 November 1982; 84-11, 30 March 1984.
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Table of Contents
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I BACKGROUND
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II UNBUNDLING OF SET AND LINE RATES
A. Set Credit and Set Rental
B. Push-Button Rates
C. Other Services
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III SERVICE CHARGES
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A. Maintenance Services
i) Diagnostic Maintenance Services
ii) Maintenance of Subscriber Provided Equipment
B. Non-Recurring Service Charges
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IV COMPENSATION FOR DAMAGED EQUIPMENT
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V TECHNICAL ISSUES
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A. Prohibited Network Interface Function
B. Channel Deriving Equipment
C. Acoustically Coupled Equipment
D. Conditions of Attachment
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VI TELEX
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VII TELEPHONE DIRECTORIES
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VIII SUBSCRIBER EQUIPMENT RECORDS
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IX IMPLEMENTATION
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I BACKGROUND
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In Attachment of Subscriber-Provided Terminal Equipment, Telecom Decision CRTC 82-14, 23 November 1982 (Decision 82-14), the Commission affirmed its interim determinations made with respect to Bell Canada (Bell) and British Columbia Telephone Company (B.C. Tel) that a liberalized terminal attachment policy is in the public interest and decided that it should be made applicable to all federally regulated terrestrial telecommunications common carriers. The Commission also finalized the degree of liberalization which should apply and the terms and conditions under which the carriers should participate in the terminal equipment market.
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In the case of NorthwesTel Inc. (NorthwesTel, the Company), the Commission directed that the tariff revisions necessary to implement the terms and conditions of Decision 82-14 be filed by 1 September 1983.
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As directed, NorthwesTel filed, on 1 September 1983, tariff revisions necessary to implement the terms and conditions of Decision 82-14. These included unbundled rates for business and residence single, two-party and multi-party primary exchange service, unbundled line and set rates for push-button service, multiline access rates, revised premium set rates, revised rates for jacks and connectors and revised standard non-recurring service charges. Maintenance rates for subscriber-provided terminal equipment, revised charges for diagnostic maintenance applicable to repair visits where subscriber-provided equipment is involved and separate rates for Telex terminals and Telex network access were also filed. On 19 October 1983, the Commission issued CRTC Telecom Public Notice 1983-64 outlining the proposed changes and inviting those wishing to comment on the application to do so by 21 November 1983. No comments were received.
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Tariff revisions filed by Bell and B.C. Tel pursuant to Decision 82-14 were dealt with in Bell Canada and British Columbia Telephone Company - Implementation of Decision Permitting Attachment of Subscriber-Provided Terminal Equipment, Telecom Decision CRTC 84-11, 30 March 1984 (Decision 84-11).
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That decision considered generally the issues involved in implementing Decision 82-14 and should be consulted for a more complete statement of the considerations that have resulted in this decision.
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II UNBUNDLING OF SET AND LINE RATES
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A. Set Credit and Set Rent
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Prior to Decision 82-14, the main telephone set was required to be provided as part of primary exchange telephone service. Since this will no longer be the case, it is necessary to separate or "unbundle" the rate charged for such telephone service into two components with one rate being charged for the line component and a separate rate being charged for the main telephone set, if rented from the telephone company.
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In consideration of the fact that a basic rotary dial set will no longer be provided as part of such single-line primary exchange telephone service, NorthwesTel proposed to reduce primary exchange rates by $1.00 for single-line subscribers. The Company further proposed that monthly rates for basic rotary dial telephones be established at $1.50 for residence subscribers and $2.40 for business subscribers.
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Taking into account the principles adopted in Decision 84-11, the Commission approves basic set rates of $1.60 and $2.50 for residence and business subscribers respectively. The Company is directed to reduce single-line primary exchange rates by the amount of $1.40 rather than $1.00 as proposed by the Company.
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In the case of two-party and multi-party rates, NorthwesTel intended to apply a credit equal to the difference between the line credit and the set rental rate. The Commission notes that this credit was not put into the proposed tariff pages. The Commission directs the Company to include the credit for two-party and multi-party service in its tariff pages.
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As regards multiline rates, the Commission does not accept NorthwesTel's proposal not to apply the set credit to multiline subscribers and directs the Company to apply the $1.40 set credit to multiline subscribers as well.
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In order to offset revenue shortfalls created by the increase in set credit,the Commission directs the Company to file rates that would reflect a $2.00 surcharge added to the PBX trunk rates and rotary service.
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B. Push-Button Rates
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NorthwesTel's current surcharge for the first push-button set is $2.40 for residence and $3.70 for business subscribers respectively while the second push-button set is $1.50 plus the extension rate. The Company proposed push-button line surcharges of $0.90 for residence and $2.20 for business subscribers respectively and a charge of $0.80 for each push-button set.
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The Commission approves the set rates as proposed and directs the Company to increase push-button line surcharges to $l.60 for residence and $2.90 for business subscribers respectively to be applied only to touch-tone equipped central office lines. No line charge will apply for digipulse. The proposed set surcharge of $0.80 for push-button sets is approved.
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C. Other Services
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NorthwesTel is directed to reduce Centrex line rates by the same amount as individual line rates and to establish Centrex telephone set rates equal to the rates applicable to such telephones when rented for individual line service. NorthwesTel is further directed to advise the Commission of any other of its services in which the rate for terminal equipment and transmission access is not unbundled. Should the Company be of the view that unbundling is not appropriate, it should provide supporting reasons.
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III SERVICE CHARGES
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A. Maintenance Services
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i) Diagnostic Maintenance Services
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In Decision 82-14, the telephone companies were directed to file diagnostic maintenance rates, equal to the company-wide representative cost of a maintenance repair visit, to be applied only where trouble is found to be located in subscriber-provided equipment.
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NorthwesTel proposed flat rates of $50.00 for residence and $56.00 for business subscribers respectively.
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Based on its analysis of the information filed, the Commission directs the Company to file a flat rate of $43.50 for single-line subscribers and a rate of $43.50 for the first 15 minutes and $10.50 for each additional 15 minutes for multiline subscribers.
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ii) Maintenance of Subscriber-Provided Terminal Equipment
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As stated in Decision 84-11, the Commission has decided to deal with this matter in a separate decision.
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B. Non-Recurring Service Charges
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Currently, the installation service charge is $28.00 for residence subscribers and $44.00 for business subscribers. The Company proposed to unbundle these charges based on work functions representing administration, line connection, premise visit and several different premise work charges. Since the proposed unbundled service charges represent a substantial increase over current charges, NorthwesTel proposed to phase in the service charges through to 1988.
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The Commission agrees with the concept of an unbundled service charge but considers that four components are sufficient. These components should include an order processing, line connection, premise visit and premise work charge.
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In the Commission's view, the unbundled rates should reflect the cost distribution of these four components and the sum of the four components should equal the existing bundled charge. The Commission has determined that the appropriate breakdown of the charges for residence subscribers is as follows: a) order processing $7.50; b) line connection $7.10; c) premise visit $6.70; and d) premise work $6.70. For business subscribers the breakdown is: a) order processing $10.85; b) line connection $10.25; c) premise visit $9.65; and d) premise work $13.25.
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With regard to the premise work charge, the Commission directs that it be applied for each item of premise work done, at the subscriber's request, to install, move or change a telephone line, jack, instrument and other miscellaneous equipment.
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The Commission further directs that all new service installations must be terminated on jacks and be provided at rates as approved above.
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IV COMPENSATION FOR DAMAGED EQUIPMENT
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NorthwesTel proposed to insert the following in its General Regulations:
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Upon termination of all or part of service, those subscribers who fail to return in good
condition, Company provided single-line plug-ended terminal equipment, reasonable wear and
tear excepted, to a Company Business office or other location as directed by the Company,
shall be responsible for payment to the Company for replacing the equipment or restoring it to
its original condition.
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The Commission denies the above request. The Commission would, however, be prepared to consider the introduction of a leased equipment replacement charge for a trial period.
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V TECHNICAL ISSUES
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A. Prohibited Network Interface Function
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NorthwesTel's proposed Item CRTC 3001-1303.1.D.1.b would prohibit the attachment of terminal equipment which automatically changes from an on-hook mode to an off-hook mode in response to stimuli other than network-alerting or other telecommunications signals. In Decision 84-11, the Commission considered similar provisions proposed by Bell and B.C. Tel. In that proceeding, objections were raised that such a restriction would prohibit the attachment of many items of terminal equipment which automatically initiates calls. Bell proposed alternate wording which was accepted by the Commission in Decision 84-11: "Automatically changes from an on-hook mode to an off-hook mode, except in response to an incoming call or to initiate an outgoing call." NorthwesTel is directed to file this revised wording for approval.
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B. Channel Deriving Equipment
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NorthwesTel's proposed Item CRTC 3001-1303.1.D.3. prohibits the connection of channel deriving equipment except as otherwise permitted by the Company's tariffs.The Commission is not aware of any provision of the Company's tariffs which allow the connection of these devices. Consistent with Decision 84-11, NorthwesTel is directed to file for approval tariffs which will allow channel deriving equipment to be connected to at least tie trunks and to "Channels For Voice Without Signalling or Conditioning" or their equivalent.
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C. Acoustically Coupled Equipment
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Proposed Item CRTC 3001-1303.1.B requires that acoustically coupled terminal equipment be certified. Consistent with Decision 84-11, the Company is directed to file for approval tariff revisions specifying minimal network protection standards which could be applied as an alternative to the certification of inductively or acoustically connected equipment.
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D. Conditions of Attachment
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The Company's proposed Item CRTC 3001-1303.2.A specifies that subscriber-provided terminal equipment is for use with individual line, multiline and PBX trunk service only. The Company is directed to delete this Item as, in the Commission's view, adequate restrictions are specified in Item CRTC 3001-1303.2.C.
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VI TELEX
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The unbundling of Telex service rates and other related matters will be dealt with in a separate decision regarding the attachment of subscriber-provided Telex and TWX terminal equipment.
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VII TELEPHONE DIRECTORIES
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The Commission has issued a separate decision clarifying the requirements related to the distribution of telephone directories for all federally regulated telephone companies, entitled: Bell Canada and British Columbia Telephone - Distribution of Telephone Directories - Applications to Review Telecom Decision CRTC 82-14, Telecom Decision CRTC 84-8, 13 February 1984.
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VIII SUBSCRIBER EQUIPMENT RECORDS
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In Decision 82-14, the Commission directed all federally regulated telephone companies to examine and report on the feasibility of providing all subscribers leasing multiline terminal equipment with either a copy of the subscriber's equipment record issued once a year or a copy of the subscriber's updated equipment record to be reissued whenever a significant change in equipment takes place, or whenever a change in relevant tariffs or tolls takes place.
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NorthwesTel proposed to provide to subscribers a record of their in-place leased multiline equipment on an annual basis or whenever a significant change in equipment or tariffs takes place.
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The Commission accepts the Company's proposal and further directs that subscribers be entitled to request a copy of their equipment records once each year.
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IX IMPLEMENTATION
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With the exception of the changes directed to be made in this decision, all other parts of the tariff revisions proposed by NorthwesTel are approved. The Commission hereby directs NorthwesTel to file by 1 June 1984, to be effective 1 September 1984, proposed tariff revisions necessary to implement this decision.
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The Commission further directs NorthwesTel to prepare, for Commission approval, a billing insert providing information regarding the terminal equipment options now available to subscribers. Included in this information should be a clear explanation of the diagnostic maintenance charges that will apply with respect to a subscriber requested premise visit where trouble is found to be located in subscriber-provided terminal equipment. Furthermore, the Company is directed to incorporate a page in future publications of its directories containing the same type of information.
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J.G. Patenaude
Secretary General
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