ARCHIVED -  Telecom Decision CRTC 97-18

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Telecom Decision

Ottawa, 18 December 1997
Telecom Decision CRTC 97-18
IMPLEMENTATION OF PRICE CAP REGULATION - DECISION REGARDING INTERIM LOCAL RATE INCREASES AND OTHER MATTERS
File No.: 8085-RP0003/97
I INTRODUCTION
A. Background
1. In Review of Regulatory Framework, Telecom Decision CRTC 94-19, 16 September 1994, the Commission determined, among other things, that earnings regulation would be replaced with price cap regulation for the Utility segment, effective 1 January 1998. In that Decision, the Commission recognized the need for a transition period to establish suitable conditions for price caps, including moving local rates closer to costs and decreasing the subsidy provided by long distance services.
2. In Price Cap Regulation and Related Issues, Telecom Decision CRTC 97-9, 1 May 1997 (Decision 97-9), the Commission determined the appropriate regulatory framework for the price cap regime, including the principles and components of the price cap formula.
3. The Commission issued Implementation of Price Cap Regulation, 1997 Contribution Charges and Related Issues, Telecom Public Notice CRTC 97-11, 25 March 1997 (PN 97-11), in order to initiate a public proceeding to implement price cap regulation and to determine, among other things, the appropriate Utility segment rates prior to the implementation of price caps (going-in rates) for BC TEL, Bell Canada (Bell), The Island Telephone Company Limited (Island Tel), Maritime Tel & Tel Limited (MT&T), MTS NetCom Inc. (MTS), The New Brunswick Telephone Company, Limited (NBTel), NewTel Communications Inc. (NewTel) and TELUS Communications Inc. (TCI) (the telephone companies). Going-in rates provide the basis for the application of the price cap formula after 1 January 1998.
4. In PN 97-11, the Commission set out the schedule required to meet the 1 January 1998 implementation date for price cap regulation. In a letter dated 30 May 1997, the Commission modified the procedure outlined in PN 97-11 to allow parties to participate more effectively in the proceeding. In extending the length of the proceeding, the Commission stated the following:
In order not to jeopardize the implementation of local rate increases and contribution rate reductions on 1 January 1998, the Commission will issue an interim decision in late December, with an effective date of 1 January 1998, with respect to local rate increases, contribution rate reductions and the subsidy requirement. The final decision on all issues in the proceeding will be issued by 1 March 1998. Any rate adjustments required by the final decision will be filed by the telephone companies by 31 March 1998 and implemented by 1 May 1998.
B. Scope of Proceeding
5. In PN 97-11, the Commission directed the telephone companies to file, by 13 June 1997, their respective financial forecasts, split rate base results, depreciation studies and capital plan submissions for 1997.
6. The Commission also considered that it would be more efficient to include the 1997 contribution charges proceeding, including issues regarding the contribution rates for TELUS Communications (Edmonton) Inc. (TCI Edmonton or TCEI), in the context of this proceeding.
7. The telephone companies and TCI Edmonton were directed to file 1995 and 1996 data regarding conversation minutes as well as their respective 1997 forecasts. ACC TelEnterprises Ltd., AT&T Canada Long Distance Services Company (AT&T Canada LDS), fONOROLA Inc. (fONOROLA), London Telecom Network (London Telecom), Sprint Canada Inc., and Westel Telecommunications Ltd. (Westel) (the entrants) were requested to provide similar information for each telephone company's operating territory. In addition, AT&T Canada LDS and other entrants operating in Ontario were directed to provide their views, with supporting rationale, as to why the Gross Receipts Tax (GRT) adjustment should be continued.
8. In Decision 97-9, the Commission outlined the remaining scope of the proceeding initiated by PN 97-11, which included the following issues :
(1) the establishment of the going-in revenue requirement (including an appropriate rate of return on average common equity for the Utility segment) and rates (including contribution) for each telephone company effective 1 January 1998;
(2) proposals to increase basic residential service rates effective 1 January 1998;
(3) the mechanism to recover, during the price cap regime, any revenue requirement shortfall which cannot be recovered from going-in rates;
(4) the depreciation life characteristics to be implemented 1 January 1998;
(5) the telephone companies' subsidy requirements by residence Network Access Services or equivalent for each rate band as a result of the central fund approach approved in Local Competition, Telecom Decision CRTC 97-8, 1 May 1997 (Decision 97-8), to accommodate the evolution of the local market from a monopoly to a competitive environment;
(6) the finalization of rate band classifications which were given interim approval in the proceeding leading to Decision 97-8; and
(7) the Utility segment services to be designated as Uncapped Services and as Competitor Services.
9. The following matters were made part of this proceeding following the issuance of PN 97-11 and Decision 97-9:
(1) Bell's proposed Service Improvement Program (SIP) filed under Tariff Notice (TN) 6038; and
(2) the per-circuit contribution charge applicable to the Wireless Service Providers (WSPs), effective 1 January 1998, pursuant to the process established in Telecom Order CRTC 97-590, 1 May 1997 (Order 97-590).
C. Procedure
10. The telephone companies, the entrants and TCI Edmonton were made parties to this proceeding. On 13 June 1997, those parties and Stentor Resource Centre Inc. (Stentor), on behalf of the telephone companies, filed evidence and/or responses to initial Commission interrogatories. Other interested parties, including competitors, consumer groups and subscribers, also participated in the proceeding.
11. The following parties filed evidence on 26 September 1997: Alberta Council on Aging, the Consumers' Association of Canada, the Fédération nationale des associations de consommateurs du Québec and the National Anti-Poverty Organization (ACA et al.); the Canadian Cable Television Association (CCTA); City of Calgary (Calgary); Consumers' Association of Canada (Manitoba) and the Manitoba Society of Seniors (CAC/MSOS); and Consumers' Association of Canada, Alberta Branch (CACAlta). Several rounds of interrogatories were also addressed by parties and the Commission.
12. A public hearing took place in Hull, Quebec, on 3 November and 4 November 1997 before Commissioners David Colville (chairman of the hearing), Françoise Bertrand, Gail Scott, Peter Senchuk and Andrée Wylie for the presentation of oral final argument.
13. Oral and written final arguments were provided by the following parties: Stentor; BC TEL; Bell; Island Tel/MT&T; MTS; NBTel; NewTel; TCI; ACA et al.; AT&T Canada LDS; BC Old Age Pensioners' Organization, Council of Senior Citizens' Organizations of BC, Federated Anti-Poverty Groups of BC, Senior Citizens' Association of BC, West End Seniors' Network, End Legislated Poverty, BC Coalition for Information Access, and Tenants' Rights Action Coalition (BCOAPO et al.); Calgary; CAC/MSOS; CACAlta; Call-Net Communications Inc. (Call-Net); CCTA; Clearnet Communications Inc.; Corporation of the Township Euphrasia; fONOROLA; Government of British Columbia; Government of Ontario; London Telecom; Mr. Pat McCarthy; Microcell Telecommunications Inc. (Microcell); Ontario Federation of Agriculture; Township of Milton; Township Municipality of Palmerston, North and South Canonto; Rogers Cantel Inc. (Cantel); and Westel.
14. On 14 November 1997, written reply arguments were provided by the following parties: Stentor; BC TEL; Bell; Island Tel; MT&T; MTS; NewTel; TCI; ACA et al.; AT&T Canada LDS; BCOAPO et al.; Calgary; CAC/MSOS; CACAlta; Call-Net; CCTA; MetroNet Communications Group Inc.; Microcell; Cantel; and Westel.
15. The Commission also received about 2,000 comments from subscribers across Canada, as well as 134 petitions containing over 18,000 names.
II DETERMINATIONS
A. General
16. As stated earlier, this Decision sets out, among other things, the local rate increases, contribution rates and the percent subsidy requirement by band effective 1 January 1998. All determinations made in this Decision are final unless otherwise stated.
B. Rates
1. Interim Rate Increases
17. In Decision 97-9, the Commission determined that the telephone companies should be allowed to increase basic residential local service rates up to $3.00 on average at the start of the price cap regime (i.e., 1 January 1998) in order to move contribution rates to an appropriate level and to recover their going-in revenue requirements. Decision 97-9 also specified that the mechanism to recover any revenue requirement shortfall not reflected in going-in rates would also be determined in the proceeding initiated by PN 97-11.
18. Pursuant to Decision 97-9, the telephone companies filed proposed rate increases to basic residence local service, effective 1 January 1998. The proposed rate increases varied widely, ranging from no increases for NBTel to a $6.40 average increase proposed by NewTel. Bell proposed an average increase of $2.97, which included revisions proposed under TN 6038. BC TEL, Island Tel, MTS and TCI each proposed average increases of $3.00, while MT&T proposed an average increase of $2.00. Except for NewTel, the telephone companies submitted that their proposed going-in rates would not allow for a full recovery of their respective going-in revenue requirement shortfalls prior to the implementation of price caps.
19. The telephone companies, except for NewTel, requested recovery of their proposed remaining going-in revenue requirement shortfalls through a "Factor-A" adjustment to the price cap constraints. This proposal would provide the telephone companies with the opportunity to increase local rates beyond the basic price cap parameters during the price cap period. NewTel's proposed going-in rates would allow the company to recover its proposed revenue requirement shortfall.
20. After reviewing the evidence filed in this proceeding, the Commission concludes that, on a prima facie basis, interim rate increases to basic residential local rates are warranted for all the telephone companies who requested such increases. Only NBTel did not propose to increase its rates.
21. The Commission's interim determinations regarding each of the telephone companies' basic residential local rates are provided in Attachment A to this Decision. All rates specified therein are granted interim approval effective 1 January 1998. Except for MT&T, the average rate increases approved on an interim basis are less than those requested by the telephone companies. The approved interim rates result in average increases as outlined in the table below:
Average Rate
Increase ($)
BC TEL 2.84
Bell 2.57
Island Tel 2.05
MT&T 2.00
MTS 0.35
NBTel 0.00
NewTel 2.50
TCI 1.10
22. In determining, on a prima facie basis, the amount of the rate increases, the Commission has applied the same principles equally to each telephone company, while considering each company's particular circumstances. The Commission notes that, as detailed above, this approach does not result in uniform rate increases for the telephone companies across Canada.
23. The Commission also considers that, on a prima facie basis, except for MT&T and possibly BC TEL, the implementation of a mechanism to recover any remaining revenue requirement shortfall is not required. The Commission notes that there may also be some minor adjustments to the interim rates approved in this Decision. The Commission will further address these issues in its final determination to be issued by 1 March 1998.
24. The telephone companies, except for NBTel, are directed to issue revised tariff pages, effective 1 January 1998, reflecting the interim rates approved in Attachment A to this Decision.
25. The following Sections set out the determinations specific to certain individual telephone companies.
2. BC TEL
26. In addition to proposed increases to its basic residential local service rates, BC TEL proposed to restructure its rates for single and multi-line business services to take effect 15 November 1997. The company's proposed going-in revenue requirement reflected the estimated annualized revenue impact of the proposed rates. BC TEL requested that a determination regarding its business rate restructure be issued by 1 October 1997.
27. By letter dated 11 July 1997, the Commission informed BC TEL that it would not be appropriate to consider the company's business rate restructuring proposal prior to the close of the record of this proceeding and that this aspect of the company's application would be finalized in the Commission's interim decision. Alternatively, the Commission also stated that, should a tariff application be filed, it would be possible to issue a determination within the company's proposed time frame, conditional on the business rate restructure not resulting in a reduction of business revenues on an annualized basis and therefore not having an impact on basic residential local rates. By letter dated 17 July 1997, the company advised the Commission that it wished to proceed with its proposed business rate restructure in the context of this proceeding.
28. The Commission is of the view that, given the extensive restructuring of basic residential local rates, including that to be implemented 1 January 1998, it would be inappropriate to reflect the impact of BC TEL's proposed business rate restructure on residence rates to be implemented 1 January 1998. The Commission therefore denies the proposed business rate restructuring.
29. The Commission notes that the structure and levels of BC TEL's proposed basic residential local rates reflect the company's proposed assignment of wire centres and exchanges to rate bands. The company also proposed to adopt a number of sub-bands within each band, which were determined primarily by existing rate groups. As discussed in Section D below, the Commission has determined, on an interim basis, that certain changes to BC TEL's proposed rate band assignments are warranted. Accordingly, the affected wire centres and exchanges have been assigned, on an interim basis, to the appropriate sub-band, consistent with the Commission's determinations in Section D below and the current rate group of the particular wire centre or exchange.
30. In that regard, BC TEL is directed to file, by 12 January 1998, the average number of 1997 Customer Access Lines (based on the information filed in this proceeding) for each of residence individual line, two-party, four-party and multi-party services for each wire centre or exchange whose approved rate band assignment differs from the company's proposal.
3. Bell
31. In its 13 June 1997 evidence, Bell proposed to implement, on 1 January 1998, residence primary exchange service rate increases averaging $1.46. Under TN 6038, as modified by TNs 6038A and 6038B, Bell also proposed changes to its General Tariff Item providing for the company's proposed SIP. The proposed tariff amendments reflected, among other things, increases to residence primary exchange service averaging $1.51 to fund the implementation of the SIP and the elimination of mileage charges. In total, the company proposed that rate increases averaging $2.97 be implemented on 1 January 1998.
32. Under the SIP, Bell proposed to implement a four-year plan that would: (1) make individual line service available on demand throughout the company's served territory by the year 2001; (2) eliminate mileage charges; (3) establish expanded local calling based on Natural Calling Centres (NCCs); and (4) upgrade analog transmission facilities in north western Ontario. Bell filed forecast expenditures for each of the four years of the plan.
33. Bell's proposed average increase of $1.51 to residence primary exchange service rates was developed to recover the costs associated with implementing the SIP over the four-year period of the program roll-out. The company indicated that, without the proposed rate increases, it would be unable to justify financially the implementation of the SIP in the manner and time frames proposed.
34. The Commission considers that the SIP would provide rural customers with the benefits of urban grade service, such as improved 9-1-1 service, Internet access without mileage or toll charges and choice of long distance and terminal equipment suppliers. While the extension of local calling was proposed as an exception to the extended area service (EAS) criteria, the Commission is of the view that the proposal would be in the interests of subscribers, and these outweigh competitive concerns. The Commission also considers that approval of the SIP would be consistent with the Canadian telecommunications policy objectives.
35. The Commission therefore approves Bell's SIP, effective 1 January 1998. The corresponding tariff amendments, proposed under TNs 6038, 6038A and 6038B, are hereby granted approval subject to the rate determinations in this Decision. Bell is directed to file, by 1 May 1998, the implementation plan for the SIP, to be completed by the year 2001, specifying by quarter and by exchange when individual line service on demand is projected to be available and the roll-out plan for the local calling areas associated with the NCCs. Bell is also directed to file, by 1 May 1998, the roll-out plan for the Utility segment portion of the analog upgrade of transmission facilities in north western Ontario. The Commission expects that these plans will be consistent with the four-year forecast filed by Bell in this proceeding.
36. As noted above, the Commission also approves for Bell, on an interim basis, the residence primary exchange service rates specified in Attachment A to this Decision. The Commission notes that, on average, the approved rates result in an increase of $2.57 per residence line. In making this determination, the Commission has concluded that the proposed average increase of $1.51 per residence line to fund the SIP is not warranted. The Commission considers, on a prima facie basis, that the approved interim rate increases provide the company with a reasonable opportunity to recover the costs associated with the SIP, as well as other revenue requirement needs, including the company's ability to recover investment in its assets.
4. MTS
37. MTS proposed to incorporate the charge for non-optional Urban Unlimited Service in its primary exchange service rates. The Commission notes that approved primary exchange service rates for other telephone companies embody charges for extended area calling. The Commission approves MTS' proposal, effective 1 January 1998, on an interim basis. The interim rates specified for MTS in Attachment A to this Decision incorporate the charges for non-optional Urban Unlimited Service.
5. NewTel
38. NewTel proposed to consolidate rate groups for its business services, resulting in rates for Rate Group 1 being raised to the same level as that of the other rate groups. The Commission finds NewTel's proposal to align the business rates in Rate Group 1 with the rates for its other four Rate Groups to be reasonable. The Commission therefore approves, effective 1 January 1998, the company's proposed business primary exchange service rates.
C. Contribution
39. In Telecom Order CRTC 97-914, 27 June 1997, the Commission approved on an interim basis, effective 1 January 1997, the proposed final 1997 contribution rates submitted by the telephone companies. The Commission notes that the 1997 contribution rates will be finalized in the decision to be issued by 1 March 1998.
40. Interim contribution rates approved by the Commission, effective 1 January 1998, are provided in Attachment B to this Decision. These rates reflect, among other things, (1) the preliminary view that the GRT adjustment will be discontinued, and (2) additional revenues resulting from a per-circuit surcharge to be applied to WSPs as directed in Order 97-590. The interim WSP per-circuit surcharges, effective 1 January 1998, are provided below:
Per-circuit
Surcharge ($)
BC TEL 24.55
Bell 6.73
Island Tel 6.81
MTS 9.90
MT&T 11.75
NBTel 18.84
NewTel 20.47
TCI/TCEI 91.27
41. The telephone companies and TCEI are directed to issue forthwith tariff pages reflecting interim contribution rates and interim per-circuit surcharges provided herein.
42. In a letter dated 18 December 1997, the Commission made a determination to vary that portion of Order 97-590 which required the implementation of a de-averaged contribution mechanism and has retained the existing 2% contribution surcharge for direct access lines, pending the outcome of a future proceeding.
D. Local Subsidy Allocation
1. Rate Bands
43. In Decision 97-8, the Commission granted interim approval to the rate band structures proposed by each of the telephone companies. A number of companies in this proceeding proposed changes to those rate band structures.
44. Bell and MTS both proposed to disaggregate Band D into Bands D and E. The Commission notes that, while Bell provided descriptive evidence of significant cost differences within the existing Band D, the company was unable to provide cost studies in support of its proposal to disaggregate the existing Band D into Bands D and E. Therefore, the Commission is of the preliminary view that Bell's rate band structure should remain unchanged. The Commission notes that, while some of the other telephone companies supported a similar split of their respective Bands, they were also unable to furnish evidence to support that split.
45. The Commission notes that MTS provided the results and methodology of cost studies which supported the division of rural Manitoba exchanges into two rate bands. On the basis of that evidence, the Commission is of the preliminary view that MTS' proposal to subdivide the existing Band D into two bands is reasonable.
46. MTS also proposed to re-assign the Douglas and Alexander exchanges from Band C to Band E. MTS noted that these two exchanges had been assigned initially to Band C because they had EAS links to Brandon. MTS filed evidence indicating that the Douglas and Alexander exchanges exhibited the loop length and density characteristics of Band E and not of Band C. The Commission is of the preliminary view that MTS' proposal to re-assign the Douglas and Alexander exchanges from Band C to Band E is reasonable.
47. BC TEL proposed to re-assign a number of wire centres and exchanges between rate bands. The company noted that its revised proposal recognized that both density and community size are indicators of market and cost considerations, and that its original proposal had been based primarily on density calculations. The Commission is of the view that the market considerations advanced by BC TEL should not be the primary consideration as to whether an exchange or wire centre is assigned to one band or another. The Commission considers that cost characteristics are a more appropriate criterion by which to assign an exchange or a wire centre to a band. Consequently, the Commission is of the preliminary view that BC TEL's banding structure and assignment of particular wire centres and exchanges to bands should remain unchanged from that approved in Decision 97-8.
48. TCI proposed to assign the rural local loops from exchanges associated with Bands B, C and D that are defined as beyond the Base Rate Area (BRA) boundary to Band E. The BRA is the part of the exchange in which the development of service is relatively substantial and continuous; however, it may include a non-contiguous area referred to as an island BRA. As development of a particular community or nearby locality proceeds, the BRA boundaries are revised. TCI submitted that the rural loops in Band E are typically long and in low density areas and therefore exhibit significantly higher costs than loops within a BRA boundary.
49. The Commission notes that the rate band proposals of the telephone companies reflect the broad cost characteristics of providing local loops and that the costs of providing individual local loops within a particular band or exchange are not homogeneous. The Commission considers that an appropriate rate band structure must balance (1) the level of aggregation in terms of cost characteristics, and (2) the ease of administration for the purposes of the local subsidy allocation and for the development of local competition.
50. The Commission has concerns with respect to employing Band definitions determined by BRA boundaries. The Commission is of the view that the Network Access Lines (NALs) outside of a BRA may not be easily and readily identifiable. In addition, new NALs outside of a BRA served by competitors may be difficult to identify and administer under TCI's Band E proposal. Furthermore, the Commission considers that as BRA boundaries are not static, these difficulties could be exacerbated. Finally, the Commission considers that BRAs are a rating concept for primary exchange service that is becoming an outdated concept. In light of the above, the Commission denies TCI's proposed approach to Band E.
51. In conclusion, the Commission grants interim approval to the revised banding structure proposed by MTS in this proceeding. The Commission notes that, for the other telephone companies, the assignment of wire centres and exchanges to bands will remain unchanged from those given interim approval in Decision 97-8 and shall maintain their interim status.
2. Percent Subsidy Requirement by Band
52. The Commission approves, on a prima facie basis, the interim percent subsidy requirement by band provided in Attachment C to this Decision, effective 1 January 1998, based on interim residential service rates approved in this Decision and the methodology outlined in interrogatory ___(CRTC)1May97-508.
53. As discussed above, the Commission has determined that certain changes to BC TEL's proposed rates and rate band assignments are warranted. Accordingly, BC TEL is directed to file, by 12 January 1998, a revised response to interrogatory BC TEL(CRTC)1May97-508, along with supporting calculations, to reflect the Commission's determinations in this Decision regarding rates and rate band structure.
E. Service Baskets and Price Indices
54. The Commission's interim assignment, effective 1 January 1998, of Utility segment services under the price cap regime is specified in Attachment D to this Decision. The telephone companies are directed to file with the Commission, by 12 January 1998, the classification of each of their Utility segment services by tariff item.
55. In Decision 97-9, the Commission indicated that compliance with the Price Cap Index (PCI) and Service Band Limits (SBLs) would involve a demonstration of the impact of individual rates on the relevant price indices. In this proceeding, each company provided its proposed format for reporting changes to the price cap indices and compliance with the price constraints. Bell, NBTel and NewTel indicated that they would have the systems in place to report based on individual rate elements by the first quarter of 1998. The remainder of the companies indicated that they would not be in a position to report by the first quarter of 1998 on such a basis. The Commission directs BC TEL, Island Tel, MT&T, MTS and TCI to implement the systems necessary to demonstrate the calculation of the actual price index and related service band indices at the rate element level within six months of the date of this Decision.
56. The Commission directs the companies to file forthwith the calculation of their actual price indices and service band indices, based on rates for capped Utility segment services as at 1 January 1998, at the rate element level of detail (where possible). The information should be provided in hard copy as well as the original electronic format. The associated PCI and SBLs are set at an initial level of 100, effective 1 January 1998, on an interim basis.
F. Other Matters
57. In Rates for Unlisted Number Service and Related Issues, Telecom Public Notice CRTC 97-31, 27 August 1997 (PN 97-31), the Commission initiated a proceeding to review, among other things, the rates charged by the telephone companies for Unlisted Number Service. In PN 97-31, the Commission directed the telephone companies to file proposed monthly rates for Unlisted Number Service as well as the net revenue impact of changes to these rates. The Commission notes that a decision in that proceeding will likely have an impact on the telephone companies' going-in revenue requirement. Since a decision is not expected until the first quarter of 1998, the Commission hereby makes the rates for Unlisted Number Service interim, effective 1 January 1998, at existing levels.
III FINAL DECISION
58. As stated earlier, the Commission intends to issue its final decision by 1 March 1998, based on the record of this proceeding which closed on 14 November 1997, as well as the material required to be filed pursuant to this Decision. The final decision will provide the reasons for the Commission's determinations and will also make final determinations on a variety of matters, including those made on a preliminary or interim basis in this Decision.
Laura M. Talbot-Allan
Secretary General
This document is available in alternative format upon request.
Attachment A /
INTERIM RESIDENCE LOCAL RATES EFFECTIVE 1 JANUARY 1998 
BC TEL
Current Rate Group 

Rate Band & Sub-band e

Individual Line Service  Two-Party Service  Four-Party Service  Multi-Party Service 
         
E (16) 

A1

$24.10 $17.75 $16.45 $16.05
C (6-9) 

B1

$19.10 $14.35 $13.25 $12.95
D (11-13) 

B2

$21.40 $16.05 $14.75 $14.40
E (14-16) 

B3

$24.15 $17.75 $16.45 $16.05
F (17-19) 

B4

$27.00 $19.70 $18.05 $17.55
G (20-21) 

B4

$27.00 $19.70 $18.05 $17.55
C (6-9) 

C

$19.10 $14.35 $13.25 $12.95
D (10) 

C

$19.10 $14.35 $13.25 $12.95
B (4-5) 

D1

$18.35 $13.80 $12.55 $12.45
C (6-9) 

D1

$18.35 $13.80 $12.55 $12.45
D (10-13) 

D2

$21.65 $16.05 $14.75 $14.40
E (14-15) 

D3

$24.15 $17.75 $16.45 $16.05
A (2-3) 

D4

$17.20 $13.10 $12.15 $12.00
H (2-3)  $15.20 $12.05 $11.10 $10.95
I (4-5)  $16.35 $12.75 $11.65 $11.45
J (6-7)  $17.50 $13.55 $12.30 $12.05
K (8-9)  $18.70 $14.25 $13.15 $12.80
L (10-11)  $19.90 $15.10 $13.85 $13.55
Current Rate Group 

Rate Band & Sub-band

Individual Line Service Two-Party Service  Four-Party Service Multi-Party Service 
         
E (16) 

A1

$24.10 $17.75 $16.45 $16.05
C (6-9) 

B1

$19.10 $14.35 $13.25 $12.95
D (11-13) 

B2

$21.40 $16.05 $14.75 $14.40
E (14-16) 

B3

$24.15 $17.75 $16.45 $16.05
F (17-19) 

B4

$27.00 $19.70 $18.05 $17.55
G (20-21) 

B4

$27.00 $19.70 $18.05 $17.55
C (6-9) 

C

$19.10 $14.35 $13.25 $12.95
D (10) 

C

$19.10 $14.35 $13.25 $12.95
B (4-5) 

D1

$18.35 $13.80 $12.55 $12.45
C (6-9) 

D1

$18.35 $13.80 $12.55 $12.45
D (10-13) 

D2

$21.65 $16.05 $14.75 $14.40
E (14-15) 

D3

$24.15 $17.75 $16.45 $16.05
A (2-3) 

D4

$17.20 $13.10 $12.15 $12.00
H (2-3)  $15.20 $12.05 $11.10 $10.95
I (4-5)  $16.35 $12.75 $11.65 $11.45
J (6-7)  $17.50 $13.55 $12.30 $12.05
K (8-9)  $18.70 $14.25 $13.15 $12.80
L (10-11)  $19.90 $15.10 $13.85 $13.55
Bell
Rate Group 

Individual Line Service /

Two-Party Service Four-Party Service
     
3A 

$15.90

$12.20 $10.60
3 to/à 11 

$17.30

$12.75 $11.15
12 

$17.30

$12.75 $11.15
13 

$17.30

$12.75 $11.15
14 

$19.05

$14.70 $13.35
15 

$19.05

$14.70 $13.35
16 

$19.05

$14.70 $13.35
17 

$22.60

$17.20 $16.00
18 

$22.60

$17.20 $16.00
19 

$22.60

$17.20 $16.00
20 

$23.00

$17.50 $16.30
Rate Group

Individual Line Service

Two-Party Service  Four-Party Service 
     
3A 

$15.90

$12.20 $10.60
3 to/à 11 

$17.30

$12.75 $11.15
12 

$17.30

$12.75 $11.15
13 

$17.30

$12.75 $11.15
14 

$19.05

$14.70 $13.35
15 

$19.05

$14.70 $13.35
16 

$19.05

$14.70 $13.35
17 

$22.60

$17.20 $16.00
18 

$22.60

$17.20 $16.00
19 

$22.60

$17.20 $16.00
20 

$23.00

$17.50 $16.30
Island Tel
Individual Line Service (Rate Groups 2 to 4) / $22.25
Four-Party Service (Rate Groups 2 to 4) / $17.05
MT&T
Individual Line Service (Rate Groups 1 to 6) / $25.00
MTS
Individual Line Service
Rate Group 

Band A 

Band B Band C  Band D Band E 
3 $17.65 $17.65      
2     $17.65    
2       $16.35 $16.35
1         $15.30
1A         $13.00
Rate Group

Band A 

Band B  Band C Band D  Band E
3 $17.65 $17.65      
2     $17.65    
2       $16.35 $16.35
1         $15.30
1A         $13.00
NBTel
Individual Line Service / $20.00
NewTel
Individual Line Service (Rate Groups 1 to 5) / $19.95
Two-Party Line Service (Rate Groups 1 to 5) / $17.40
TCI
Individual Line Service / $22.00
Attachment B /
INTERIM CONTRIBUTION RATES EFFECTIVE 1 JANUARY 1998 /
  BC TEL Bell Island Tel MTS MT&T NBTel NewTel TCI TCEI
         
         
Contribution per Min. per End - Average 

0.0195

0.0052 0.0198 0.0114 0.0197 0.0127 0.0195 0.0280 0.0024
Contribution per Min. per End - Peak

0.0271

0.0070 0.0279 0.0157 0.0275 0.0173 0.0280 0.0387 0.0033
Contribution per Min. per End - Off-Peak 

0.0135

0.0035 0.0139 0.0078 0.0138 0.0087 0.0140 0.0193 0.0016
                 
Contribution per Min. per End - Trunk Side Average 

0.0167

0.0044 0.0170 0.0098 0.0169 0.0121 0.0186 0.0239 0.0020
Contribution per Min. per End - Trunk Side Peak 

0.0232

0.0060 0.0238 0.0134 0.0236 0.0165 0.0266 0.0331 0.0028
Contribution per Min. per End - Trunk Side Off-Peak 

0.0116

0.0030 0.0119 0.0067 0.0118 0.0082 0.0133 0.0166 0.0014
Contribution per Min. per End - Line Side Average

0.0142

0.0038 0.0144 0.0083 0.0143 0.0121 0.0186 0.0203 0.0017
Contribution per Min. per End - Line Side Peak 

0.0197

0.0051 0.0203 0.0114 0.0200 0.0165 0.0266 0.0281 0.0024
Contribution per Min. per End - Line Side Off-Peak 

0.0099

0.0026 0.0101 0.0057 0.0100 0.0082 0.0133 0.0141 0.0012
  BC TEL Bell Island Tel MTS MT&T NBTel NewTel TCI TCEI
         
         
Contribution per Min. per End - Average 

0.0195

0.0052 0.0198 0.0114 0.0197 0.0127 0.0195 0.0280 0.0024
Contribution per Min. per End - Peak  

0.0271

0.0070 0.0279 0.0157 0.0275 0.0173 0.0280 0.0387 0.0033
Contribution per Min. per End - Off-Peak

0.0135

0.0035 0.0139 0.0078 0.0138 0.0087 0.0140 0.0193 0.0016
                 
Contribution per Min. per End - Trunk Side Average 

0.0167

0.0044 0.0170 0.0098 0.0169 0.0121 0.0186 0.0239 0.0020
Contribution per Min. per End - Trunk Side Peak

0.0232

0.0060 0.0238 0.0134 0.0236 0.0165 0.0266 0.0331 0.0028
Contribution per Min. per End - Trunk Side Off-Peak

0.0116

0.0030 0.0119 0.0067 0.0118 0.0082 0.0133 0.0166 0.0014
Contribution per Min. per End - Line Side Average

0.0142

0.0038 0.0144 0.0083 0.0143 0.0121 0.0186 0.0203 0.0017
Contribution per Min. per End - Line Side Peak

0.0197

0.0051 0.0203 0.0114 0.0200 0.0165 0.0266 0.0281 0.0024
Contribution per Min. per End - Line Side Off-Peak

0.0099

0.0026 0.0101 0.0057 0.0100 0.0082 0.0133 0.0141 0.0012
Attachment C
INTERIM SUBSIDY REQUIREMENT (%) BY BAND EFFECTIVE 1 JANUARY 1998
  BC TEL Bell Island Tel MTS MT&T NBTel NewTel TCI
                 
Band                
                 
A 2.8 0.0 0.0 0.0 0.0 22.7 14.1 0.0
B 33.7 19.4 0.0 21.8 0.0 77.3 85.9 15.4
C 16.6 30.6 100.0 2.6 100.0 - - 10.2
D 46.9 50.0 - 24.7 - - - 74.4
E - - - 50.9 - - - -
  BC TEL Bell Island Tel MTS MT&T NBTel NewTel TCI
                 
Band                
                 
A 2.8 0.0 0.0 0.0 0.0 22.7 14.1 0.0
B 33.7 19.4 0.0 21.8 0.0 77.3 85.9 15.4
C 16.6 30.6 100.0 2.6 100.0 - - 10.2
D 46.9 50.0 - 24.7 - - - 74.4
E - - - 50.9 - - - -
Attachment D
INTERIM UTILITY SEGMENT SERVICE ASSIGNMENTS
BASIC RESIDENTIAL LOCAL SERVICE SUB-BASKET
Residence Primary Exchange Services
Mileage Charges
Service Charges
Mandatory EAS Charges
Touch-tone Surcharge
Party-line Telephone Sets
Exchange Radio-Telephone Service
SINGLE AND MULTI-LINE BUSINESS SERVICES SUB-BASKET
Business Primary Exchange Services (including single and multi-line, message rate
and joint user services)
Service Charges
Mandatory EAS Charges
Touch-tone Surcharge
Short-term Service
Exchange Radio-Telephone Service
OTHER CAPPED SERVICES SUB-BASKET
Tariff Subscription Charges
Telephone Set Loss Charge
Equivalent Service/Hunting Arrangements
Operator Services (other than those operator services assigned elsewhere)
Unlisted/Unpublished Telephone Numbers
Public Telephone Service
Semi-Public Telephone Service
Direct Inward Dialing
Suspension of Service/Temporary Discontinuance of Service
Service-System Service
Alerting/Reporting Systems other than 9-1-1
Microlink
Megalink
Digital Exchange Access
Digital Channel Service
Digital Network Access
Access Special Routing
Hotel, Hospital and General Private Branch Exchange (PBX) Services
Service on Stationary Boats, Ships, Trailers and Trains
Local Channels (including access portions of interexchange private line services)
Non-Sufficient Funds Cheque Charge
Hospital Patient Telephone Service
Answer Supervision
Suppressed Ringing Service
Other Radio-telephone Services (non-exchange)
Non fixed price, fixed-term Special Facilities Tariffs (SFTs) related to the services in
the Other Capped Services sub-basket
COMPETITOR SERVICES
Directory File Service
Telephone Number Access Service
Network Portability Access Service
Switched Network Access for Radio Paging System Operators
Switched Network Access for Radio System Operators
Internet Service Provider Link
Support Structures
Partial Cable Distribution Systems
Integrated Voice Messaging Service Access
Resale and Sharing (other than Contribution Charges)
Wireless Access Service
Cellular Access Service
Local Network Interconnection and Component Unbundling
Co-located Customer Provided Equipment in a Telephone Company Central Office
Tariff for Interconnection with Interexchange Carriers (other than Contribution
Rates)
Tariff for Interconnection with Telesat Canada
Interexchange Equal Access Services (800 Carrier Identification Query, 800 Directory
Assistance - Database Update and Administration, 800 Directory Assistance - Usage,
Busy Line Verification/Interruption, Long Distance Directory Assistance, Signal Transfer
Point Port Connection, Bill Number Screening Database Query)
SERVICES WITH FROZEN RATES
Contribution Charges
9-1-1 and Message Relay Service
Call Display Blocking
Call Blocking 900/976
Installment Payment Plan
Toll Restriction
UNCAPPED SERVICES
Directory Listings (other than Unlisted/Unpublished Telephone Numbers)
Labour Rates/Service Charges (other than those applicable to capped services)
Late Payment Charges
Centrex Services
Construction Charges/Trench Provisioning
Optional Calling Features (including Advanced Intelligent Network Services)
Access Portions of Switched Interexchange Services
Toll Telephones
Optional EAS
Jack and Plug Arrangements
Remaining SFTs (other than those relating to wireless access services)
Mobile Telephone Services
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