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Telecom Order
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Ottawa, 27 May 1996
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Telecom Order CRTC 96-503
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IN THE MATTER OF applications filed by AGT Limited (AGT) under Tariff Notice 768 dated 3 April 1996, BC TEL under Tariff Notices 3456 and 3456A dated 2 April and 29 April 1996 respectively, Bell Canada (Bell) under Tariff Notice 5728 dated 21 March 1996, The Island Telephone Company Limited (Island Tel) under Tariff Notice 419 and Maritime Tel & Tel Limited (MT&T) under Tariff Notice 598 dated 26 March 1996, MTS Netcom Inc. (MTS) under Tariff Notice 203 dated 29 March 1996, The New Brunswick Telephone Company, Limited (NBTel) Tariff Notice 527 dated 20 March 1996 and NewTel Communications Inc. (NewTel) under tariff Notice 468 dated 12 April 1996 (collectively, the telephone companies) for interim approval of proposed revisions to various Tariff Items related to each telephone company's respective Interexchange Carrier Access Service.
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WHEREAS the telephone companies' applications include the proposed 1996 contribution rates for de-averaged trunk-side connections applicable to alternate service providers of long distance services, to be effective 1 June 1996, as directed by Revisions to the Mechanism to Recover Contribution Charges, Telecom Decision CRTC 95-23, 4 December 1995 (Decision 95-23);
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WHEREAS the telephone companies, excluding NBTel and NewTel, proposed revised rates to be effective 1 July 1996, to reflect the change in entrant discount from 25% to 15%, as set out 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), and modified in Unitel Communications Inc. - Application for Extension of the Contribution Discount Period and Other Matters, Telecom Decision CRTC 93-5, 19 April 1993 (Decision 93-5);
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WHEREAS the telephone companies, except for MTS and NewTel, have also included proposed interim per-circuit contribution rates for line-side connections and Canada-US and Canada-Overseas circuits, to be effective 1 June and 1 July 1996;
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WHEREAS the Commission considers that the interim de-averaged trunk-side contribution rates that were filed are consistent with Decision 95-23 and in accordance with the directives contained in 1996 Contribution Charges, Telecom Public Notice CRTC 95-52, 8 December 1995 (Public Notice 95-52);
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WHEREAS the Commission notes that, except for AGT, the telephone companies' proposed interim per-circuit contribution rates for line-side connections and Canada-US and Canada-Overseas circuits are consistent with Public Notice 95-52;
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WHEREAS the Commission notes that revised interim per-circuit line-side contribution rates are not required for MTS and NewTel as the proposed final 1996 contribution rates filed pursuant to Public Notice 95-52 reflect the contribution ceiling for these companies that was set out in Implementation of Regulatory Framework - Splitting of the Rate Base and Related Issues, Telecom Decision CRTC 95-21, 31 October 1995 (Decision 95-21);
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WHEREAS, subject to the adjustments noted below, the Commission considers that interim approval of the telephone companies' proposed per-circuit contribution rates for line-side connections and Canada-US and Canada-Overseas circuit rates, effective 1 June and 1 July 1996, is appropriate;
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WHEREAS the Commission notes that AGT included in its tariff filing, proposed interim de-averaged per-minute line-side contribution rates to be effective 1 June and 1 July 1996;
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WHEREAS, by letter dated 7 May 1996, the Commission denied the request of AGT and certain other telephone companies, for interim approval of de-averaged per-minute line-side contribution rates;
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WHEREAS the Commission has accordingly calculated AGT's average line-side per-minute contribution rate as set out in the Attachment to this Order;
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WHEREAS the Commission notes that Contribution Regime in Alberta, Telecom Decision CRTC 95-22, 27 November 1995, (Decision 95-22) implemented a province-wide blended contribution rate for Alberta, designed to incorporate the individual contribution requirements of ED TEL Communications Inc. (ED TEL) and AGT;
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WHEREAS the Attachment to this Order sets out certain adjustments to the interim 1996 Alberta blended contribution rates to reflect the exclusion from ED TEL's contribution requirement of a proposed $2 local rate increase that was deferred by the Commission in Telecom Order CRTC 96-502;
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WHEREAS the Commission notes that the proposed 1996 contribution rates filed by ED TEL are the first filed by that company to be based on Phase III results, and accordingly, the Commission has given these interim approval, effective 1 January 1996 in Telecom Order CRTC 96-502;
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WHEREAS the Commission considers that it is appropriate, in light of the province-wide blended rate in effect in Alberta, that the line-side contribution rate for AGT, approved in this Order, should also be effective 1 January 1996;
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WHEREAS the Commission notes that NBTel requested retroactive interim approval of its proposed final 1996 line-side per-circuit contribution rates effective 1 January 1996;
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WHEREAS the Commission further notes that finalization of all 1996 contribution charges will be dealt with in the context of the proceeding initiated in Public Notice 95-52;
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WHEREAS on 16 April 1996, Unitel Communications Company submitted that if final 1996 contribution rates exceed the interim rates filed by the telephone companies under the above-noted Tariff Notices, they should be required to file imputation test results for all price changes and new services introduced from 1 June 1996 until the Commission issues its decision in the proceeding announced in Public Notice 95-52; and
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WHEREAS the Commission is of the view that this request is more appropriately considered at the time that the 1996 contribution rates are finalized -
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IT IS HEREBY ORDERED THAT:
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1. The proposed contribution rate revisions for de-averaged trunk-side connections submitted by AGT, BC TEL, Bell, Island Tel, MT&T, MTS, NBTel and NewTel, to be effective 1 June and 1 July 1996, are granted interim approval.
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2. The proposed contribution rate revisions for averaged line-side connections and Canada-US and Canada-Overseas per-circuit rates submitted by BC TEL, Bell, Island Tel, NBTel and MT&T, to be effective 1 June and 1 July 1996, are granted interim approval.
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3. AGT's proposed de-averaged line-side contribution rates are denied.
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4. The attached averaged line-side rates for AGT are granted interim approval as set out in the Attachment to this Order, commencing 1 January 1996 and 1 July 1996.
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5. NBTel's request for retroactive interim approval of its averaged line-side per-circuit contribution rates for the period 1 January to 31 May 1996 is denied.
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6. AGT shall issue, within 7 days, revised tariff pages reflecting the contribution rates granted interim approval in item 4 above.
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Allan J. Darling
Secretary General
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ATTACHMENT
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