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Telecom Public Notice
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Ottawa, 2 December 1985
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Telecom Public Notice CRTC 1985-81
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BELL CANADA - CRITERIA FOR EXTENDED AREA SERVICE
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The Commission has received an application from Bell Canada (Bell), dated 4 November 1985, for approval of revisions to the criteria employed by the company to determine which locations qualify for Extended Area Service (EAS). EAS allows customers located in neighbouring telephone exchanges to call one another without incurring long distance charges.
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Existing criteria for the provision of EAS linking two exchanges are as follows:
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1) the exchanges are contiguous;
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2) a minimum of 60% of customers in one exchange make calls to those in the other at least once
a month (community of interest);
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3) the distance between the exchanges' rate centres (normally the main switching centre in an
exchange) does not exceed 30 miles: and
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4) a simple majority (51%) of customers, whose basic local rates would be increased, approve of
the new service.
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In its application the company proposes to eliminate criteria 1) and to modify criteria 2) so as to require that a minimum of 50% of customers in one exchange make calls to those in the other at least once a month. According to the company, implementation of the revised criteria would result in approximately 130 additional exchanges qualifying for EAS. The company estimates that it would take approximately six years to furnish these additional EAS links.
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The company also estimates that, taking into account both cost and revenue factors, including lost long distance revenues, full implementation of the revised criteria would result in a before tax annual net revenue loss of $19 million. As part of its proposal, the company suggests that such losses should be recovered through increases in local rates for, and limited to, new and existing EAS customers. Specifically, it is proposing to phase in increases of 5% to 10% in the EAS weighting factors used in rate group calculations for the purpose of determining the local rates payable by telephone customers in EAS areas. The company estimates that a 5% EAS weighting factor increase would result in 65 exchanges being placed in a higher rate group. In these exchanges local monthly rates would rise from between $0.30 to $1-45, for residence customers, Sand from between $2.00 to $4.55 for business customers.
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In support of its application, Bell has submitted an economic evaluation study, for which it has claimed confidentiality. An abridged version has been placed on the public record.
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The application may be examined at any of the company's business offices or at the offices of the CRTC, Room 561, Central Building, Les Terrasses de la Chaudière, 1 Promenade du Portage, Hull, Quebec or Complex Guy Favreau, East Tower, 200 Dorchester Blvd. West, 6th floor, Montreal, Quebec. A copy of the application may be obtained by any interested party upon request directed to the company at the address shown below.
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If you wish to comment on the application, please write to Mr. Fernand Bélisle, Secretary General, CRTC, Ottawa, Ontario, K1A 0N2, by 15 January 1986. A copy of your letter should be sent to Mr. E.E. Saunders, Q.C., c/o Mr. Peter J. Knowlton, Assistant General Counsel, Bell Canada, 25 Eddy Street, 4th floor, Hull, Quebec, J8Y 6N4. Bell may file a reply with the Commission by 30 January 1986.
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Fernand Bélisle
Secretary General
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