ARCHIVED -  Telecom Order CRTC 95-1069

Telecom Order

Ottawa, 28 September 1995

Telecom Order CRTC 95-1069

IN THE MATTER OF the Phase III Manual Update report of The New Brunswick Telephone Company, Limited (NBTel) dated 10 July 1995.

WHEREAS in NBTel - Phase III Manual: Compliance with Public Notice 94-42, Order 92-1432 and Letter Decision 94-1, Telecom Decision CRTC 95-11, 26 May 1995 (Decision 95-11), the Commission approved NBTel's Phase III Manual, subject to (1) the resolution of various items noted in the Appendix to Decision 95-11 and (2) the company's compliance with its commitments to modify the assignment procedures for certain investment and expense accounts for use in the production of 1994 results;

WHEREAS Decision 95-11 also directed NBTel to include in its update submission various other revisions, explanations and reports that were relevant to the production of 1994 results;

WHEREAS, in accordance with the procedures set out in Decision 95-11, NBTel filed a Phase III Manual update report on 10 July 1995;

WHEREAS, on 2 August 1995, Unitel Communications Inc.(Unitel) filed comments on: (1) the level of detail contained in NBTel's Manual and (2) the credibility of the company's assurances that the company's Competitive Network (CN) category would show a surplus in 1994;

WHEREAS Unitel submitted that, in light of the detailed draft study documentation on new broadband activities provided by NBTel in the Split Rate Base proceeding, NBTel appears to have two levels of documentation but only provides an abbreviated Executive Summary version in its Phase III Manual;

WHEREAS Unitel submitted that this level of detail was insufficient for reviewing and evaluating NBTel's Phase III procedures and that the company should be directed to provide more complete study documentation in its Manual;

WHEREAS Unitel submitted that NBTel's claim that its CN category will show a surplus in 1994 is not supported by the forecast Phase III results submitted in the Split Rate Base proceeding which revealed shortfalls for 1994 and 1995;

WHEREAS NBTel filed its reply on 14 August 1995;

WHEREAS NBTel stated that (1) in Decision 95-11, the Commission endorsed the level of detail provided in its Manual, supplemented by its accounting manual, as sufficient for audit purposes, (2) the use of the study title Executive Summary eliminates confusion in its internal documentation, (3) the draft study documentation referred to by Unitel is very specific, may vary from year-to-year due to organization and other changes and would require substantial editing if it were to become public, and (4) Unitel's request should be denied in accordance with the Commission's past treatment of Bell and BC TEL's "Desk Guides";

WHEREAS NBTel stated that the forecasts provided in the Split Rate Base proceeding were explicitly qualified since they were developed by applying 1993 ratios to the corporate-level data available at that time;

WHEREAS NBTel stated that the similarity in the results between 1993 and the 1994/1995 forecasts is not surprising and noted further that, based on a preliminary analysis of actual results, its current view is more representative and indicative of the expected results;

WHEREAS the Commission continues to consider that the level of documentation contained in NBTel's Phase III Manual is sufficient for audit purposes when supplemented by its accounting manual;

WHEREAS the Commission considers NBTel's explanation of its CN category shortfall situation is acceptable;

WHEREAS the Commission's review of NBTel's update report has revealed certain inappropriate tariff classifications;

WHEREAS the Commission considers that revised classifications for the services identified in the Appendix to this Order are appropriate;

WHEREAS, other than as noted above, the Commission finds the explanations and modifications included in NBTel's 10 July 1995 update report acceptable; and

WHEREAS NBTel must file amended pages to its Phase III Manual in accordance with the Commission's findings set out in this Order -

IT IS HEREBY ORDERED THAT:

1. Subject to paragraph 2 below, the revisions, explanations, clarifications and reports included in NBTel's 10 July 1995 update report are approved.

2. NBTel is to re-classify the tariffed services listed in the Appendix to this Order as indicated.

3. The amended pages to the Phase III Manual are to be filed by 27 October 1995 and are to include all updates approved in this Order that are relevant to the production of NBTel's 1994 Phase III results to be submitted by 30 September 1995.

4. Copies of the amended pages to the Phase III Manual are to be served on all interested parties by the same date.

Allan J. Darling
Secretary General

APPENDIX

The proposed classifications of the NBTel tariffed services listed below are unacceptable and are to be re-classified as follows:

1) Digital Switched Access Service (GT 102.3)

Change the proposed classification from A; CTMD to A; ML since the tariff contains no terminal equipment rates but does have tariff components which qualify for a ML classification.

2) Interconnect Services (IXCs) - Switching & Aggregation (GT 800.6D)

Proposed classification was to ML; CT. The service component should be classified as Access for 1994 consistent with other Stentor members and subsequently changed to ML; CT in a future update submission for use in the production of 1995 results.

3) Mobile Radio Network Access (GT 840.4)

Delete the proposed CT-O classification since no terminal component rates are included in the tariff.

4) Cellular Telephone Service (SST 4030)

Change the proposed ML classification for the call restriction feature to CN since it can be provided by competitors.

5) Multicom (SST 6450.4)
Voicecom (SST 6460.3)

Change the proposed CN only classification to A; ML; CN since the tariffs for both services contain Access and ML components and the revision is consistent with the classification approved for other Stentor members.

6) Advantage Vnet (NST 7400E-200)

Change the proposed CN only classification to A; CT consistent with the classification approved for other Stentor members.

7) Electronic Transfer Capability for Centrex (NST 7400E-900)

Change the proposed CN only classification to ML consistent with the classification approved for other Stentor members.