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Telecom Public Notice
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Ottawa, 17 January 1989
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Telecom Public Notice CRTC 1989-2
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BELL CANADA AND BRITISH COLUMBIA TELEPHONE COMPANY - COMPETITIVE NETWORK SERVICE RATES FOR 1989
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References:
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B.C. Tel Tariff Notices 1805, 1805A, 1805B and 1805C
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Bell Canada Tariff Notice 2910
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The Commission has received applications from British Columbia Telephone Company (B.C. Tel), dated 11 October 1988, 17 October 1988, 1 November 1988 and 28 November 1988, for approval of proposed rate revisions for Competitive Network (CN) services. These revisions were filed under B.C. Tel Tariff Notices 1805, 1805A, 1805B and 1805C, respectively. The Commission has also received an application from Bell Canada (Bell), dated 4 November 1988, for approval of proposed revisions to rates for its CN services. Bell filed the proposed tariff pages under Tariff Notice 2910. Bell's and B.C. Tel's applications include revisions to both intra-company and TransCanada rate schedules.
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In Telecom Letter Decision CRTC 88-11, 4 October 1988 (Letter Decision 88-11), the Commission directed B.C. Tel to file proposed tariff pages providing for interim increases of 15% in various intra and non-intra CN services, effective 19 October 1988. These interim increases were intended to correct for a $1.3 million shortfall in the Phase III CN category forecast over the remainder of 1988, and were designed to generate total additional revenues of approximately $1.5 million over that period.
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Under Tariff Notice 1805, dated 11 October 1988, the company filed proposed tariff pages reflecting 15% increases in CN services. However, in the letter accompanying that filing, the company indicated that it would prefer that interim increases be made solely in its intra CN service rates. B.C. Tel stated that it intended to file, by 17 October 1988, revised rates for its intra-B.C. CN services, providing for increases sufficient to eliminate the shortfall forecast in the CN category over the remainder of 1988. The company also stated that it would file revised proposed rates for the entire CN category for 1989.
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By letter dated 17 October 1988, B.C. Tel filed Tariff Notice 1805A, proposing an 18% increase in intra-B.C. CN services. B.C. Tel requested that Tariff Notice 1805A be given interim approval and that Tariff Notice 1805 be withdrawn. In Telecom Order CRTC 88-553, dated 21 October 1988, the Commission approved Tariff Notice 1805A on an interim basis effective 21 October 1988, but denied the company's request to withdraw Tariff Notice 1805.
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By letter dated 1 November 1988, B.C. Tel filed, under Tariff Notice 1805B, an application proposing rate revisions for intra and non-intra CN services to take effect, on a final basis, 1 January 1989. The proposed revisions, in B.C. Tel's view, would maximize contribution for 1989 from the CN category. The company projected that the proposed revisions would increase 1989 CN revenues by $5.9 million. In the estimated 1988 and 1989 Phase III results filed by B.C. Tel on 15 December 1988, the company indicated that the projected 1989 revenue impact of Tariff Notice 1805B had been revised to $6.5 million.
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Under Tariff Notice 1805C, dated 28 November 1988, B.C. Tel proposed various minor revisions to the rates proposed under Tariff Notice 1805B. The company indicated that these revisions are intended to provide for consistency between B.C. Tel's and Bell's TransCanada CN rates.
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In anticipation of the filing of B.C. Tel Tariff Notice 1805B, and because that application would deal with rates for TransCanada services that are also offered by Bell, the Commission, by letter dated 21 October 1988, directed Bell to provide its preferred CN rate scenario for 1989 and its views on the appropriateness of Bell implementing the rate action contemplated in Letter Decision 88-11. Bell filed its comments on 4 November 1988. The company indicated that it would prefer not to implement rate action similar to that in Letter Decision 88-11. In addition, it filed Tariff Notice 2910, proposing its preferred CN rate revisions, effective 1 January 1989. Bell requested that, in the event that the Commission was unable to grant final approval prior to 1 January 1989, interim approval of the proposed tariff revisions be granted, effective that date.
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By letter dated 29 November 1988, the Commission indicated it would be prepared to grant interim approval, effective 1 January 1989, to only those rates proposed for intra-Bell interexchange voice grade (IXVG), Telpak, Teleroute 200 and teletype-grade channels.
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Bell indicated, by letter dated 6 December 1988, that it was prepared to accept the Commission's proposal for interim approval. In Telecom Order CRTC 88-636, dated 8 December 1988, the Commission granted interim approval, effective 1 January 1989, to the proposed rates for intra-Bell IXVG, Telpak, Teleroute 200 and teletype-grade channels.
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In support of their applications, Bell and B.C. Tel have provided information for which confidentiality has been claimed. The companies have also provided abridged versions of this information for the public record.
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The Commission regards evidence filed by B.C. Tel during the proceeding leading to British Columbia Telephone Company - Revenue Requirement for the Years 1988 and 1989 and Revised Criteria for Extended Area Service, Telecom Decision CRTC 88-21, 19 December 1988 (Decision 88-21), as relevant to the CN rate proposals filed by B.C. Tel, and will consider that evidence to be part of the record of this proceeding.
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By letter dated 15 November 1988, CNCP Telecommunications (CNCP) requested the disclosure of the impact on B.C. Tel's originated revenue of Tariff Notice 1805B, by service, broken down into originated revenues subject to settlement and originated revenues not subject to settlement. CNCP was of the opinion that this information should be disclosed, since similar information was placed on the public record in the proceeding leading to Decision 88-21. CNCP submitted that the information is required in order to evaluate fully the proposed rate revisions. CNCP also argued that the release of this information would not cause B.C. Tel specific direct harm, as information of a similar nature had already been provided in the recent revenue requirement proceeding. By letter dated 25 November 1988, B.C. Tel indicated that the disclosure of similar information in the revenue requirement proceeding was an oversight and should not be considered a precedent.
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The Commission considers it appropriate that the company disclose the information in Table 1 of Attachment 2 to Tariff Notice 1805B at a level of aggregation similar to that of the information disclosed in response to interrogatory B.C. Tel(CRTC)15Jun88-1704, filed during the recent revenue requirement proceeding. The Commission therefore orders the disclosure of the following rows in the "BCT Total" column of Table 1: "Special Assembly", "Total", "Cross Impact" and "Net Revenue Impact". B.C. Tel is directed to file with the Commission and serve on CNCP, within 5 days, a revised Table 1 reflecting the required disclosure.
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The Commission has addressed interrogatories to both Bell and B.C. Tel concerning their respective applications. The companies have been directed to file their responses by 13 February 1989.
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B.C. Tel's applications may be examined at any of the company's business offices, or at the offices of the CRTC, Room 201, Central Building, Les Terrasses de la Chaudière, 1 Promenade du Portage, Hull, Québec, or 800 Burrard Street, Suite 1500, Vancouver, British Columbia. A copy of the applications and of the company's responses to the Commission's interrogatories may be obtained by any interested person upon request to B.C. Tel at the address shown below.
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Bell's application may be examined at any of the company's business offices, or at the offices of the CRTC in Hull, or at Complex Guy-Favreau, East Tower, 200 Dorchester Blvd. West, 6th floor, Montréal, Québec. A copy of the application and of the company's responses to the Commission's interrogatories may be obtained by any interested person upon request directed to Bell at the address shown below.
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If you wish to comment on any of these applications, please write to Mr. Fernand Bélisle, Secretary General, CRTC, Ottawa, Ontario, K1A 0N2, by 6 March 1989. Copies of your letter should be sent to Mr. K.D.A. Morrison, Secretary, British Columbia Telephone Company, 3777 Kingsway, Burnaby, British Columbia, V5H 3Z7, and to Mr. Peter J. Knowlton, Assistant General Counsel, Bell Canada, 25 Eddy Street, 4th Floor, Hull, Québec J8Y 6N4.
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Fernand Bélisle
Secretary General
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