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ARCHIVED -  Telecom Order CRTC 95-722

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Telecom Order

Ottawa, 30 June 1995
Telecom Order CRTC 95-722
IN THE MATTER OF an application by BC TEL under Tariff Notice 3165, dated 2 September 1994 for approval of revisions to the company's General Tariff items 32, 155, 163, 254 and 255 and Special Assembly Tariff item 250, pertaining to the incorporation of Touch Calling into basic exchange service.
WHEREAS BC TEL proposed to incorporate existing Touch Calling rates into the monthly basic exchange service rates for all residence individual, multi-line, two-party, four-party and multi-party customers and all business individual, measured, four-party and multi-party customers;
WHEREAS the company proposed to establish a radio exchange service rate schedule with rates equivalent to the existing four-party and multi-party exchange service rate schedule for radio services which can not be equipped with Touch Calling capability;
WHEREAS the company proposed to establish residence and business rotary dial discounts equivalent to one-half of the current Touch Calling rates for a period of one year and eliminate the rotary dial discount after the one-year period;
WHEREAS the company proposed to establish Touch Calling service as the standard service offering for the business and residence services noted above on all move orders initially and on change of service orders once the rotary dial discount has been eliminated;
WHEREAS in Telecom Order CRTC 94-1114, dated 28 September 1994, the tariff revisions filed under Tariff Notice 3165 were approved on an interim basis;
WHEREAS the Commission invited comments on the company's application in Telecom Public Notice CRTC 94-45, dated 17 October 1994;
WHEREAS comments were received from a number of individuals, the B.C. Old Age Pensioners' Organization et al. (BCOAPO et al.) and the Government of British Columbia (BCG);
WHEREAS individual subscribers were concerned with what they characterized as an increase in the rate for rotary dial service to Touch Calling levels while not receiving Touch Calling service;
WHEREAS BCOAPO et al. argued, among other things, that the increase was being imposed on those subscribers who could least afford it;
WHEREAS BCOAPO et al. further argued that the filing represented a substantial and unwarranted increase in local rates and submitted that the Commission should reverse its interim order and deny the application;
WHEREAS the BCG indicated, among other things, that it was concerned with the immediate rate increase and the short transition period of one year before rotary dial subscribers would pay the full Touch Calling rates;
WHEREAS it argued that the negative impact on rotary dial customers was contrary to the spirit of grandfathering and the Commission's desire that the process of Touch Calling standardization be gradual in order to mitigate the disruption for customers;
WHEREAS the BCG suggested that consideration be given to the proposal of either a longer transition period of five years or a 5% residual threshold of rotary dial subscribers being achieved before equating rotary dial and Touch Calling rates;
WHEREAS, by letter dated 1 December 1994, BC TEL filed a reply;
WHEREAS BC TEL noted, among other things, that the Commission has consistently ruled that it would be appropriate to move towards standardizing Touch Calling capability and incorporating it into basic service for all customers and that, given the existing overall revenue/cost relationship of local services, it would not be appropriate to accompany the standardization with reduced Touch Calling rates;
WHEREAS BC TEL argued that the application puts into place the final steps required for achieving the objective of making Touch Calling the standard within a reasonable time frame;
WHEREAS the Commission notes that BC TEL indicated in Tariff Notice 3165 that it waives the service charges to change from rotary dial to Touch Calling service;
WHEREAS the Commission notes that it has stated in numerous orders issued since 1992 that, as a general policy objective, it considers it appropriate for telephone companies to move towards standardizing Touch Calling service and incorporating it into basic service for all customers;
WHEREAS the Commission's general approach to the standardization of Touch Calling service has contained two phases;
WHEREAS the first phase has involved grandfathering the rates for rotary dial service, as was approved for BC TEL in Telecom Order CRTC 92-1731, dated 21 December 1992, to become effective 24 February 1993;
WHEREAS the Commission notes that the first phase has had the effect of removing the price differential between Touch Calling and rotary dial service for new customers;
WHEREAS the second phase has involved the phased elimination of the rate differential between rotary dial and Touch Calling service for existing customers;
WHEREAS the Commission considers that, given the overall revenue/cost relationship of local services, approaches to standardizing Touch Calling service should not involve reductions in the current Touch Calling rates and that the process should be gradual in order to minimize the disruption for customers using rotary dial service;
WHEREAS the Commission considers that the filing by BC TEL meets the policy objectives of the Commission;
WHEREAS the Commission considers that the availability of Touch Calling service in any particular exchange within the company's operating territory should be a precondition to equating rotary and Touch Calling rates within that exchange; and
WHEREAS the Commission has given consideration to the application in light of all the information and comments received and the company's reply thereto -
IT IS HEREBY ORDERED THAT:
The proposed tariff revisions submitted by BC TEL under Tariff Notice 3165 are approved on a final basis, with the condition that, in the event that there are exchanges where Touch Calling would not be available by 1 November 1995, the tariff revisions shall not come into effect for those exchanges until such time as Touch Calling service becomes available.
Allan J. Darling
Secretary General

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