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Telecom Public Notice
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Ottawa, 29 December 1987
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Telecom Public Notice CRTC 1987-74
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NORTHWESTEL INC. AND TERRA NOVA TELECOMMUNICATIONS INC. - FILING OF PHASE III MANUALS
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For related documents see:
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CRTC Telecom Public Notices 1981-41, 15 December 1981; 1982-4, 22 January 1982; 1982-5, 28 January 1982; 1982-25, 19 May 1982; 1982-38, 3 September 1982; 1984-22, 30 April 1984; 1984-42, 23 August 1984; 1986-43, 4 July 1986; Telecom Orders CRTC 86-516, 28 August 1986; 87-34, 13 January 1987; and Telecom Decisions CRTC 82-2, 26 February 1982; 82-8, 17 September 1982; 82-14, 23 November 1982; 85-10, 25 June 1985; 86-5, 20 March 1986; as well as the reports of the Inquiry Officer of 30 April 1984 and 14 August 1984.
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In Inquiry into Telecommunications Carriers' Costing and Accounting Procedures: Phase III - Costing of Existing Services, Telecom Decision CRTC 85-10, 25 June 1985 (Decision 85-10), the Commission directed Northwestel Inc. (NWT) and Terra Nova Telecommunications Inc. (TNT) to submit reports relating to the modifications to their costing methodologies, the substantiation of common costs, the methodology for developing a distinctive risk-adjusted cost of capital for each Phase III category, and the feasibility of TNT adopting allocation procedures similar to those of NWT. Pursuant to Decision 85-10, the companies each submitted a report, dated 25 October 1985.
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After reviewing these reports, the Commission concluded that a meeting between Commission staff and representatives of NWT and TNT would be necessary to elaborate upon and clarify many of the proposed procedures described in the reports. This meeting was held on 29-30 April 1986, and working notes of this meeting have been placed on the public file. On 16 June 1986, NWT and TNT jointly filed a document entitled "General Allocation Procedures" which provided significantly greater detail regarding their proposed assignment methodology and procedures, taking into account the issues discussed in the staff meeting.
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In the matter of Participation of Bell Canada and British Columbia Telephone Company in the Multiline and Data Terminal Equipment Market, Telecom Decision CRTC 86-5, 20 March 1986, NWT and TNT submitted applications dated 21 May 1986 and 22 May 1986 respectively, requesting they be treated in a manner similar to that of Bell Canada (Bell) and British Columbia Telephone Company (B.C. Tel). By Telecom Order CRTC 87-34, 13 January 1987, the Commission approved the applications of NWT and TNT and directed each company to file, by 16 March 1987, a report detailing their proposed methodology to separate the Competitive Terminal category into the two distinct categories, namely, Competitive Terminal - Multiline and Data and Competitive Terminal - Other. This report, in the form of a revision to their "General Allocation Procedures", was filed on 16 March 1987.
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On 11 March 1987, the Commission addressed questions regarding the companies' submission of 16 June 1986 and requested updates of certain financial information previously filed pursuant to Decision 85-10. The companies' responses and documentation were filed on 14 and 30 April and 8 and 12 May 1987.
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A further meeting between Commission staff and representatives of NWT and TNT was held in May 1987 to clarify issues relating to the report of 16 March 1987 and the responses to the Commission's questions of 11 March 1987. The working notes of this meeting have been placed on the public file. A final revision to the "General Allocation Procedures" document was filed by NWT and TNT on 14 August 1987.
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In Telecom Order CRTC 87-782, issued today, the Commission requires NWT and TNT to file, by 31 March 1989, Phase III Manuals for approval by the Commission together with an initial set of results for the calendar year 1987.
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As with Bell and B.C. Tel, the Commission has determined that a procedure to deal with updates to the Phase III Manuals is required. The Commission invites comments on the NWT and TNT Manuals and on the following proposal to update them:
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(a) Each year, by 30 April, NWT and TNT would each file with the Commission a written report identifying all proposed changes necessary to update their respective Phase III Manuals and the reasons why each change is required.
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(b) The Commission would review these reports and decide whether any of the changes should be the subject of a public notice to provide an opportunity for interested persons to comment.
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(c) Unless a proposed update requires immediate attention, the Commission would plan to issue an order each year by 30 September which would indicate, for each proposed change, whether it is approved, denied or subject to further study.
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(d) NWT and TNT would proceed to implement all approved changes and each would file with the Commission by 30 December, the amended pages to update the Commission's copy of the company' respective Phase III Manuals.
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With respect to these matters, the Commission is establishing the following procedure:
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1. Persons wishing to participate in this proceeding should so notify the Commission by writing to Mr. Fernand Bélisle, Secretary General, CRTC, Ottawa, Ontario, K1A 0N2, by 1 February 1988. The Commission will then distribute a list of interested parties with their mailing addresses.
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2. NWT and TNT shall each serve on interested parties, by 31 March 1989, a copy of their respective Phase III Manuals together with the initial set of results.
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3. NWT and TNT shall each file with the Commission and serve on interested parties, by 31 March 1989, comments on the proposal set out above relating to future updates of their respective Phase III Manuals.
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4. Interested parties wishing to comment on the NWT and TNT Phase III Manuals and the proposal relating to future updates to the Manuals, may do so by writing to the Commission, with a copy to NWT and TNT and the interested parties, by 30 June 1989.
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5. Reply comments by NWT and TNT shall be filed with the Commission by 30 August 1989 with a copy to all interested parties.
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6. The submissions by NWT and TNT as well as each company's interrogatory responses and the working notes of the meetings between members of the Commission's staff and representatives of NWT and TNT may be examined at the offices of the CRTC, Room 201, Central Building, Les Terrasses de la Chaudière, 1 Promenade du Portage, Hull, Quebec, or Northwestel Inc., P.O. Bag 2727, 301 Lambert Street, Whitehorse, Y.T., Y1A 4Y4, or Terra Nova Telecommunications Inc., P.O. Box 3000, 3 Terra Nova Drive, Gander, Newfoundland, A1V 2K6.
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Fernand Bélisle
Secretary General
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