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Ottawa, 13 February 1985
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Telecom Decision CRTC 85-3
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Bell Canada - Northern Telecom Price Comparison
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For related documents: see Telecom Decisions CRTC 78-7, 10 August 1978 and 79-19, 16 October 1979.
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I Application to Vary Part of Telecom Decision CRTC 84-23
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In Bell Canada - Northern Telecom Price Comparison, Telecom Decision CRTC 84-23, 5 October 1984 (Decision 84-23) the Commission directed Bell Canada (Bell, the Company) to have an independent accounting firm report to the Commission annually within 90 days of the end of each fiscal year on the matter of the prices Bell pays for products from Northern Telecom Limited (NTL).
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In a letter dated 3 December 1984, Bell requested the Commission to reconsider this directive pursuant to section 63 of the National Transportation Act. More specifically, the Company requested that the independent accounting firm be permitted to report to the Commission annually within 180 days of the end of the Company's fiscal year rather than within 90 days.
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In support of its application, Bell stated that the detailed annualized merchandise and contract sales information required to prepare the report are not available until February of each year. Bell submitted that, given this delay, the independent accounting firm has estimated that meeting the 90 day deadline will significantly increase the cost of preparing and filing the report.
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In view of the foregoing, the Company submitted that new facts have arisen which were not known at the time Decision 84-23 was issued and there is substantial doubt as to the appropriateness of requiring the Company to file the report within 90 days.
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The Commission considers that the Company has established that there are new facts which warrant a review of Decision 84-23. Moreover, since the 180 day reporting period is not expected to cause the Commission or interested parties any serious inconvenience, the Commission considers that it should be adopted. Accordingly, the Commission hereby varies Decision 84-23 to direct that the required report be filed annually within 180 days of the end of Bell's fiscal year.
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II Updated Audit Plan
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In Decision 84-23, the Commission agreed in principle with the proposed methodology to be utilized in the annual audit of the Supply Contract between Bell and NTL, as set out in Bell's submission during the proceeding. Accordingly, the Commission directed Bell to submit an updated copy of the methodology for final consideration and approval.
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Bell submitted an updated copy of the methodology as an attachment to its letter of 3 December 1984.
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Having considered the updated copy of the methodology, the Commission approves it as filed.
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Fernand Bélisle
Secretary General
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