ARCHIVED -  Telecom Costs Order CRTC 95-9

Telecom Costs Order

Ottawa, 1 November 1995

Telecom Costs Order CRTC 95-9

In re: Implementation of Regulatory Framework and Related Matters - Telecom Public Notices CRTC 94-52, 94-56 and 94-58

Application for costs by the Alberta Consumers' Coalition (AltaCC).

Position of Parties

AltaCC submitted that its intervention was helpful to the Commission in evaluating the actual costs of local service. AltaCC further stated that it was the only intervener to point out that the determination of the cost of residential versus business service was not in issue in the above-noted proceeding.

AGT Limited (AGT) opposed AltaCC's application for costs, submitting that AltaCC made no meaningful contribution to the Commission's understanding of the issues before it in the proceeding. AGT argued that AltaCC was mistaken in suggesting that the costs of local residential versus business services were not in issue in this proceeding. AGT submitted that one of the principal issues to be addressed in the proceeding initiated by Telecom Public Notice CRTC 94-58 was the level of subsidy provided to local/access service on a company specific basis, and the extent to which this subsidy should be reduced through the rate rebalancing process in the operating territories of the telephone companies. To assist the Commission in making this determination, AGT noted that the telephone companies were required to place on the public record evidence of local/access shortfall in their local serving areas. AGT submitted that the shortfall represents the sum of the shortfalls of providing basic local residential and basic local business service.

In reply, AltaCC restated its contention that the matter of business versus residential local rates was not under consideration in this proceeding, and maintained that it had contributed to a better understanding of a number of issues in this proceeding.

DIRECTION AS TO COSTS

1. The application of AltaCC for an award of costs in respect of the above-noted proceeding is hereby approved, on the following terms.

2. The Commission considers that AltaCC has not fully met the criteria set out in subsection 44(1) of the CRTC Telecommunications Rules of Procedure (the Rules). In particular, the Commission is unable to conclude that all aspects of AltaCC's intervention contributed to a better understanding of the issues by the Commission.

3. The Commission considers that AltaCC assisted the Commission to some extent on the issues of benchmarking, financial matters and AGT's tax situation. However, the Commission considers that on other matters, such as rate rebalancing and related issues, the submissions of AltaCC were of little or no assistance. For example, the Commission notes that AltaCC's contention that telephone companies' business rates are subsidized by residential rates is unsupported by the record of the proceeding.

4. In the circumstances, AltaCC is awarded 50% of its costs of participation.

5. Consistent with Telecom Costs Order CRTC 95-5 (Costs Order 95-5), costs awarded herein shall be paid to AltaCC by the respondents named in Costs Order 95-5 (the respondents), in proportion to their operating revenues from telecommunications activities, as reported in each company's most recent audited financial statements. Accordingly, the contribution from each respondent shall be as follows:

Stentor 94.12%
(on behalf of the
telephone companies,
broken down as follows):

AGT Limited 9.20%
Bell Canada 57.56%
BC TEL 14.90%
The Island Telephone
Company Limited 0.45%
Manitoba Telephone
System 3.98%
Maritime Tel & Tel
Limited 3.40%
The New Brunswick
Telephone Company,
Limited 2.65%
Newfoundland Telephone
Company 1.98%

94.12%

Sprint Canada Inc. 1.32%
Unitel Communications Inc. 4.44%
Westel Network Services Ltd. 0.12%

100%

6. Costs awarded herein shall be subject to taxation in accordance with the Rules.

7. Costs awarded herein shall be taxed by Lori Assheton- Smith.

8. AltaCC shall, within 30 days of the issue of this order, submit a bill of costs and an affidavit of disbursements to the Taxing Officer and serve a copy thereof on the respondents.

9. The respondents may, within two weeks of receipt of those documents, file comments with the Taxing Officer with respect to the costs claimed, and serve a copy thereof on AltaCC.

10. AltaCC may, within two weeks of receipt of any comments by the respondents, file a reply to the respondents' comments, serving a copy thereof on the respondents.

11. All documents to be filed or served by a specific date must be actually received, not merely mailed, by that date.

Allan J. Darling
Secretary General