|
Telecom Decision
|
|
Ottawa, 24 April 1984
|
|
Telecom Decision CRTC 84-13
|
|
Terra Nova Telecommunications Inc. - Implementation of Decision Permitting Attachment of Subscriber-Provided Terminal Equipment
|
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; 1983-65, 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.
|
|
Table of Contents
|
|
I BACKGROUND
|
|
II UNBUNDLING OF SET AND LINE RATES
A. Set Credit and Set Rental
B. Push-Button Rates
C. Other Services
|
|
III SERVICE CHARGES
A. Maintenance Services
i) Diagnostic Maintenance Services
ii) Maintenance of Subscriber-Provided Equipment
B. Non-Recurring Service Charges
|
|
IV TECHNICAL ISSUES
A. Prohibited Network Interface Function
B. Channel Deriving Equipment
C. Acoustically Coupled Equipment
|
|
V TELEX
|
|
VI TELEPHONE DIRECTORIES
|
|
VII SUBSCRIBER EQUIPMENT RECORDS
|
|
VIII IMPLEMENTATION
|
|
I BACKGROUND
|
|
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.
|
|
In the case of Terra Nova Telecommunications Inc. (Terra Nova, 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.
|
|
As directed, Terra Nova filed an application, dated 1 September 1983, for approval of tariff revisions including unbundled rates for residence and business individual line and party-line primary exchange service, unbundled line and set rates for push-button service, revised premium set rates, revised rates for jacks 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 for approval. On 19 October 1983, the Commission issued CRTC Telecom Public Notice 1983-65 outlining the proposed changes and inviting those wishing to comment on the application to do so by 21 November 1983. One party, namely the Newfoundland and Labrador Federation of Municipalities (NLFM), submitted comments on some but not all of the issues. Terra Nova did not reply to these comments.
|
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). 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.
|
|
II UNBUNDLING OF SET AND LINE RATES
|
|
A. Set Credit and Set Rental
|
|
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.
|
|
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, Terra Nova proposed to reduce primary exchange rates by $1.00 for single-line subscribers and by an amount equal to the basic set rental rate for party-line subscribers. The Company further proposed that monthly rates for basic rotary dial telephones be established at $1.50 for residence subscribers and $2.30 for business subscribers.
|
|
NLFM opposed the proposed rates on the grounds that they assigned an extra cost burden to the single-line subscriber leasing a single set, while requiring less contribution from those subscribers who use optional equipment.
|
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. Further, the Company is directed to reduce party-line primary exchange rates by the amount of the applicable basic set rental rate. In order to offset revenue shortfalls created by the line rate reductions, the Commission directs the Company to file rates that would reflect a $2.00 surcharge added to the PBX trunk rates.
|
|
B. Push-Button Rates
|
|
Terra Nova'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 lines surcharges of $0.90 for residence and $1.30 for business subscribers respectively and a set surcharge of $0.75 for push-button sets.
|
|
The Commission approves the set rates as proposed and directs the Company to increase push-button line surcharges to $1.65 for residence and $2.95 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 $0.75 for push-button sets is approved.
|
|
C. Other Services
|
|
Terra Nova is 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.
|
|
III SERVICE CHARGES
|
|
A. Maintenance Services
|
|
i) Diagnostic Maintenance Services
|
|
In Decision 82-14, the federally regulated 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.
|
|
Terra Nova proposed a rate of $52.00 for the initial 15 minutes and $11.25 for each additional 15 minute period.
|
|
Based on its analysis of the information filed, the Commission approves a flat rate of $45.50 to single-line subscribers and a variable rate of $45.50 for the first 15 minutes on the subscriber's premises and $11.25 for each additional 15 minute period to multiline subscribers.
|
|
ii) Maintenance of Subscriber-Provided Equipment
|
As stated in Decision 84-11, the Commission has decided to deal with this matter in a separate decision.
|
|
B. Non-Recurring Service Charges
|
|
Currently, the installation service charge is $34.00 for residence subscribers and $44.00 for business subscribers. In its application, the Company proposed to unbundle these charges into a four part work function service charge similar to that used by Bell. The total of the four part rates proposed were $38.50 for residence and $50.00 for business subscribers respectively. Terra Nova stated that the increases over the current rates were required to offset a revenue loss which would result from unbundling the existing service charges.
|
|
NLFM was opposed to any increases in service charges stating that they were too large but that, without access to the Company's confidential filings, it was unable to comment properly as to the necessity of any increases in rates.
|
|
While satisfied that the existing rates should be unbundled using the weighting factors applied by Terra Nova, it is the Commission's view that the unbundling should not result in an increase over existing installation service charges and, consequently, the appropriate service charges for residence subscribers should be as follows: a) administration $10.70; b) network connection $13.30; c) premise visit $5.00; and d) premise work $5.00. For business subscribers, the Commission considers the appropriate service charges to be as follows: a) administration $13.80; b) network connection $17.20; c) premise visit $6.50; and d) premise work $6.50.
|
|
With regard to the new service installations, the Commission considers that all such installations should be terminated on jacks and be provided at the above rates.
|
|
The Company is directed to file revised tariffs accordingly.
|
|
IV TECHNICAL ISSUES
|
|
A. Prohibited Network Interface Function
|
Terra Nova's proposed Item CRTC 2001-1303.3.(a)(2) 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 initiate calls. Bell proposed the following 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." Terra Nova is directed to file this revised wording for approval.
|
|
B. Channel Deriving Equipment
|
Terra Nova's proposed Item CRTC 2001-1303.3.(c) 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 allows the connection of these devices. Consistent with Decision 84-11, Terra Nova 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 equivalents.
|
|
C. Acoustically Coupled Equipment
|
Proposed Item CRTC 2001-1303.1. 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.
|
|
V TELEX
|
|
The unbundling of Telex service rates and other related matters will be dealt with in a separate Commission decision regarding the attachment of subscriber provided Telex and TWX terminal equipment.
|
|
VI TELEPHONE DIRECTORIES
|
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 Company - Distribution of Telephone Directories - Applications to Review Telecom Decision CRTC 82-14, Telecom Decision CRTC 84-8, 13 February 1984.
|
|
VII SUBSCRIBER EQUIPMENT RECORDS
|
|
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.
|
|
The Company proposed to provide to multiline subscribers a record of all leased terminal equipment.
|
The Commission notes that the Company neglected to state the frequency with which it proposed to furnish equipment records. Consistent with Decision 84-11, the Commission directs the Company to provide every multiline subscriber with an updated equipment record once a year and following a general rate increase or major tariff revision. The Commission further directs that subscribers be entitled to request a copy of their equipment records once each year.
|
|
VIII IMPLEMENTATION
|
|
With the exception of the changes directed to be made in this decision, all other parts of the tariff revisions proposed by Terra Nova are approved. The Commission hereby directs Terra Nova to file by 1 June 1984, to be effective 1 July 1984, proposed tariff revisions necessary to implement this decision.
|
|
The Commission further directs Terra Nova 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.
|
|
J.G. Patenaude
Secretary General
|
|
|