ARCHIVED -  Telecom Letter Decision CRTC 94-3

Telecom Letter Decision

Ottawa, 16 February 1994

Telecom Letter Decision CRTC 94-3

To: BC TEL - Bell Canada

Re: Bell Canada and BC TEL - Phase III Access Study Manuals

In Telecom Order CRTC 92-529, 21 April 1992 (Order 92-529), the Commission approved, with amendments, Access Study Guidelines (the Guidelines) relating to the subdivision of the Phase III Access Category revenues and costs of Bell Canada (Bell) and BC TEL. The Guidelines were developed through the Detailed Definition Process set out in Bell Canada and British Columbia Telephone Company - Terms of Reference for Access Studies, Telecom Decision CRTC 90-20, 7 September 1990.

Consistent with Order 92-529, Bell and BC TEL filed their respective Access Study Manuals for the Commission's approval on 31 March 1993. Although copies were served on interested parties, the Commission received no comments with respect to the Manuals.

Meetings were held between Commission staff and Bell and BC TEL on 26 and 21 October 1993, respectively, to clarify certain details regarding the assignment proposals. Notes of these meetings were placed on the public record. As a result of the discussions, Bell filed revisions to its Manual on 17 December 1993, serving copies on interested parties. On 30 November 1993, in accordance with the Guidelines, both Bell and BC TEL filed unaudited Access Study results for the year 1992.

The Access Study Manuals set out detailed procedures for the assignment into subcategories of Access Category investment, revenues and operating expenses. The Commission's examination of the Manuals entailed an analysis and evaluation of each individual procedure to assess the degree to which it complied with the general and specific requirements of the Guidelines.

Having made that examination, the Commission finds BC TEL's Manual, as originally filed, and Bell's Manual, as revised on 17 December 1993, to be in compliance with the requirements of the Guidelines.

The Guidelines call for the annual submission of Access Study results and prescribe a format for the presentation of those results that is consistent with that of the main Phase III results. The Commission has examined the formats proposed by Bell and BC TEL and finds them in compliance with the Guidelines. Bell and BC TEL are directed to file actual Access Study results and two sets of forecast results, coincidentally with their annual filings of primary Phase III results. The first actual results, pertaining to the calendar year 1993, are to be filed by 30 September 1994.

The Guidelines specified that the Access Study Manuals were to meet audit standards and describe the assignment procedures at a level of detail that would permit validation of the study results. In order to ensure the credibility of the Access Study results and to maintain their relevance for regulatory purposes, the Commission considers that the audit, update and review processes established in Bell Canada and British Columbia Telephone Company - Phase III Manuals: Compliance with CRTC Telecom Public Notice 86-54 and Telecom Order CRTC 86-516, Telecom Decision CRTC 88-7, 6 July 1988, for the carriers' Phase III Manuals should be extended to the Access Study Manuals. Accordingly, Bell and BC TEL are each directed to have external auditors carry out an audit of their actual Access Study results, with the annual audit of their Phase III results, and the actual results to be filed commencing 30 September 1994 should be accompanied by an Audit Report.

With respect to the updating of the Access Study Manuals, Bell and BC TEL are directed to implement the process approved in Proposed Revisions to the Phase III Manual Update Procedure, Telecom Letter Decision CRTC 89-26, 1 December 1989, commencing with the submission of an update report on 31 March 1994.

With respect to the Phase III Manual Review process, future periodic reviews by Commission staff will address the procedures and processes contained in Bell and BC TEL's respective Access Study Manuals.

Allan J. Darling
Secretary General