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Telecom Public Notice
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Ottawa, 19 November 1992
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Telecom Public Notice CRTC 92-67
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BELL CANADA, B.C. TEL, ISLAND TEL, MT&T, NBTEL AND NEWFOUNDLAND TEL - CONTRIBUTION CHARGES EFFECTIVE 1 APRIL 1993
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I Background
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In Competition in the Provision of Public Long Distance Voice Telephone Services and Related Resale and Sharing Issues, Telecom Decision CRTC 92-12, 12 June 1992 (Decision 92-12), the Commission approved the application of Unitel Communications Inc. (Unitel) to provide public switched interexchange voice services in the operating territories of Bell Canada (Bell), British Columbia Telephone Company (B.C. Tel), The Island Telephone Company Limited (Island Tel), Maritime Telegraph and Telephone Company Limited (MT&T), The New Brunswick Telephone Company Limited (NBTel) and Newfoundland Telephone Company Limited (Newfoundland Tel) (the respondents). The Commission also liberalized the rules governing resale and sharing and extended those rules to apply to the services of the Atlantic telephone companies.
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Based on information filed in the proceeding leading to Decision 92-12, the Commission established contribution charges applicable to facilities-based carriers and to resellers competing in the long distance voice services market. The Commission also directed that, in December of each year, the respondents provide estimates of appropriate contribution charges to come into effect on 1 April of the following year. The respondents were also directed to provide the calculations and forecast information underlying their estimates. For those respondents already filing results pursuant to Phase III of the Cost Inquiry, the Commission specified that this information be based on forecasted Phase III results. Respondents who do not yet produce Phase III results were directed to provide information in accordance with guidelines set out in Decision 92-12 (at pages 73-74), until such time as their Phase III results are available. The Commission stated that the information described above would be used to determine whether changes to the contribution charges established in Decision 92-12 were required.
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In anticipation of the filing of the above-noted information, the Commission initiates a proceeding to consider whether changes to the contribution charges of the respondents will be required effective 1 April 1993. This proceeding will be confined to an examination of the contribution estimates and the supporting information.
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II Initial Filing Requirements
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The respondents are directed to file, by 15 December 1992, proposed tariff pages setting out estimated contribution charges to take effect 1 April 1993. Underlying calculations are to be provided in the format shown in the Attachment to Decision 92-12 (see page 198-R). Additional supporting material to be filed by particular respondents, also by 15 December 1992, is described below.
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Phase III or Equivalent Results
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Bell and B.C. Tel are directed to provide:
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(1) actual 1991 Phase III results;
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(2) updated forecasted Phase III results for 1992, including explanations for view-over-view changes resulting from significant changes in methodology or historical ratios, or from variances in revenue, investment or expense, based on the latest Corporate View; and
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(3) 1993 forecasted Phase III results, including explanations for 1993-over-1992 (updated forecast) changes resulting from significant changes to methodology or historical ratios, or from variances in revenue, investment or expense, based on the latest Corporate View.
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Island Tel, MT&T, NBTel and Newfoundland Tel are directed to provide:
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(1) for each of the years 1991 to 1993, best estimates of Phase III equivalent non-toll expenses and revenues and calculations of the non-toll deficit, as found at lines 1. and 2. of the Attachment to Decision 92-12 (page 198-R);
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(2) for each of the years 1991 to 1993, the actual/estimated Total Operating Revenue, Total Operating Expense and Net Income After Taxes;
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(3) an explanation for all significant year-over-year (1992/1991 and 1993/1992) variances for the estimates provided in (1) and (2) above; and
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(4) a detailed description of how Phase III equivalent non-toll expenses and revenues were derived for the years 1991, 1992 and 1993, specifying all data sources.
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Estimates of Contribution
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All respondents are directed to provide:
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(1) an explanation of the methods used and assumptions made to arrive at the Wide Area Telephone Service (WATS) Revenue Reclassification adjustment, line 3. Of the Attachment to Decision 92-12 (page 198-R);
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(2) an explanation of the adjustment to the level of contribution, intended to account for the Phase III (or equivalent) Monopoly Toll category's share of Phase III Common/Plant Under Construction costs, as determined according to the percentage of Monopoly Toll to Total Phase III surpluses, line 4. of the Attachment to Decision 92-12 (page 198-R);
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(3) an explanation of the methods used and assumptions made to arrive at the estimate of contribution flowing to or from members of Stentor through the Stentor Revenue Settlement Plan, line 5. of the Attachment to Decision 92-12 (page 198-R);
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(4) a definition of the type of minutes provided (i.e., billed, switched, conversation, originating and terminating, etc.), and an explanation of the methods used and assumptions made to forecast the Respondent Switched Originating and Terminating Minutes, line 7. of the Attachment to Decision 92-12 (page 198-R);
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(5) a definition of the type of minutes provided and an explanation of the methods used and assumptions made to arrive at the estimate of total Entrant Switched Originating and Terminating Minutes, line 8.(a) of the Attachment to Decision 92-12 (page 198-R); and
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(6) an explanation of the methods used and assumptions made to arrive at an adjustment, if any, for Gross Receipts Tax, line 11. of the Attachment to Decision 92-12 (page 198-R).
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The Commission expects that the information described above would be placed on the public record.
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The Commission has addressed interrogatories to the respondents, dated 19 November 1992, regarding the methods, assumptions and underlying data employed to arrive at the contribution estimates. The Commission has also addressed interrogatories to Unitel. Responses to these interrogatories must be filed with the Commission by 15 December 1992. The Commission expects that the responses to these interrogatories will contain some detailed and disaggregated information for which confidentiality may be claimed.
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Should a respondent or Unitel wish to claim confidentiality for any of the information to be filed in this proceeding, an abridged version is to be filed to be placed on the public record, along with a detailed explanation of the exact nature of the potential harm that would result from the disclosure of the information in question, taking into consideration the public interest in its disclosure. In assessing any claims for confidentiality, the Commission will, as is its practice, take into consideration the degree to which the market is exposed to competitive forces.
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Procedure
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1. The mailing addresses to be used in this proceeding are:Mr. Allan J. Darling
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Secretary General
CRTC
Ottawa, Ontario
K1A 0N2
Fax: 819-953-0795
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Mr. B.A. Courtois
Vice-President
(Law & Regulatory Affairs)
Bell Canada
105 Hôtel-de-Ville Street
6th Floor
Hull, Quebec
J8X 4H7
Fax: 819-778-3437
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Mr. Robert F. Stuart
Director
Regulatory Matters
British Columbia Telephone Company
18th Floor
3777 Kingsway
Burnaby, British Columbia
V5H 3Z7
Fax: 604-430-9653
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Mr. F.D. Morash
President
Chief Operating Officer
The Island Telephone Company Limited
69 Belvedere Avenue
Charlottetown, Prince Edward Island
C1A 7M1
Fax: 902-566-4665
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Mr. J. Denis Connor
Regulatory Affairs Manager
Maritime Telegraph & Telephone Company Limited
P.O. Box 880, Station M
Halifax, Nova Scotia
B3J 2W3
Fax: 902-421-1538
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Mr. J. Paul O'Hara
Manager
Pricing and Regulatory Matters
The New Brunswick Telephone Company, Limited
One Brunswick Square (BS19)
P.O. Box 1430
Saint John, New Brunswick
E2L 4K2
Fax: 506-694-2473
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Mr. Donald R. Tarrant
General Manager
Rates and Regulatory Matters
Newfoundland Telephone Company Limited
Fort William Building
P.O. Box 2110
St. John's, Newfoundland
A1C 5H6
Fax: 709-739-3122
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Mr. A.G. Duncan
General Manager
Regulatory Matters
Unitel Communications Inc.
200 Wellington Street West
Suite 1600
Toronto, Ontario
M5V 3C7
Fax: 416-345-2878
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2. Bell, B.C. Tel, Island Tel, MT&T, NBTel, Newfoundland Tel and Unitel are made parties to this proceeding.
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3. Other persons (interveners) wishing to participate in this proceeding and to receive copies of the information to be filed by the respondents and Unitel must notify the Commission, serving copies on the respondents and Unitel, by 10 December 1992.
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4. The respondents are to file their contribution estimates and supporting information, serving copies on Unitel, each other and on all persons from whom they have received notice, by 15 December 1992. The respondents and Unitel are to file their responses to the Commission's interrogatories, serving copies on each other and on all persons from whom they have received notice, by the same date.
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5. Requests for public disclosure of information for which confidentiality has been claimed, setting out the reasons for disclosure, must be filed with the Commission and served on the party asserting confidentiality by noon on 21 December 1992.
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6. Replies to requests for public disclosure are to be filed with the Commission and served on the party making the request by noon on 29 December 1992.
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7. The Commission will issue a determination with respect to any such requests as soon as possible. The Commission will issue a complete list of parties and their mailing addresses at that time. The Commission intends to direct that any information to be released pursuant to its determination be placed on the public record and served on all other parties by 8 January 1993.
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8. Parties may address interrogatories to the respondents or Unitel. Any such interrogatories are to be filed with the Commission and served on the party in question by 15 January 1993. The Commission will also address interrogatories by that date.
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9. Responses to interrogatories are to be filed with the Commission and served on all other parties by 5 February 1993.
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10. Requests by parties for further responses to their interrogatories, specifying in each case why a further response is both relevant and necessary, and requests for public disclosure of information for which confidentiality has been claimed, setting out the reasons for disclosure, must be filed with the Commission and served on the party in question by 9 February 1993.
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11. Replies to requests for further responses and to requests for public disclosure must be filed with the Commission and served on the party who made the request by 12 February 1993.
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12. The Commission will issue a determination with respect to any such requests as soon as possible. The Commission intends to direct that any material required by that determination be filed with the Commission and served on all other parties by 24 February 1993.
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13. Interveners and Unitel may file comments with the Commission, serving copies on the respondents, by 5 March 1993.
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14. The respondents may file replies to any comments, serving copies on all other parties, by 15 March 1993.
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15. Where a document is to be filed or served by a specific time, the document must be actually received, not merely mailed, by that time.
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Allan J. Darling
Secretary General
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