ARCHIVED - Telecom Order CRTC 97-1295
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Ottawa, 10 September 1997
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Telecom Order CRTC 97-1295
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On 6 June 1997, Québec-Téléphone filed an application for interim approval of tariff revisions for the recovery of switching and aggregation costs.
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File No.: Tariff Notice 168
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1. Québec-Téléphone submitted that since 1 January 1997, interexchange service providers have been provided with interconnection on an equal access basis for their switched traffic terminating in its territory and for 800/888 service.
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2. Québec-Téléphone maintained that on 1 January 1997 it applied an interim contribution rate set at $0.1791 for all independent telephone companies in Quebec.
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3. Québec-Téléphone argued that adding on switching and aggregation charges at that time would have resulted in an excessively high carrier access tariff (CAT).
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4. Québec-Téléphone recalled that in Telecom Order CRTC 97-573 dated 29 April 1997, the Commission gave interim approval, effective 1 January 1997, for a revised contribution rate of $0.0754 to replace the existing interim contribution rate.
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5. Québec-Téléphone noted that the revised contribution rate was based on Phase III studies and included no compensation for switching and aggregation costs.
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6. Québec-Téléphone therefore proposed to recover switching and aggregation costs from interexchange service providers beginning on 1 January 1997.
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7. AT&T Canada Long Distance Services Company (AT&T Canada LDS) opposed the Québec-Téléphone application, arguing that it would be inappropriate to apply switching and aggregation charges before equal access is put in place.
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8. AT&T Canada LDS submitted that the rate proposed by Québec-Téléphone was developed to recover the costs of a series of services available under equal access, and that the company to date cannot obtain that package of services.
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9. AT&T Canada LDS also opposed the Québec-Téléphone proposal to apply switching and aggregation charges retroactively.
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10. AT&T Canada LDS further was of the view that Québec-Téléphone, like the Stentor members, should unbundle the switching and aggregation charges.
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11. Québec-Téléphone replied that switching and aggregation charges apply not only to the originating minutes or terminating minutes of an interexchange service provider under equal access, but to all trunk-side access minutes irrespective of whether equal access is or is not in effect.
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12. Québec-Téléphone submitted that the only situation in which switching and aggregation charges would not apply is where an interexchange service provider has line-side access.
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13. The Commission is of the view that, as regards the services specified by Québec-Téléphone, the company provides the interexchange service providers with switching and aggregation services for which it receives no compensation.
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14. The Commission is of the view that the switching and aggregation charges coming into interim effect on 1 January 1997, over and above the contribution rate then in effect, raises no tariff retroactivity issues.
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15. The Commission considers that approval of this proposal and its coming into effect on 1 January are appropriate.
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16. The Commission notes that in Regulatory Framework for Québec-Téléphone and Télébec ltée, Telecom Decision CRTC 96-5, 7 August 1996, it directed Québec-Téléphone to file unbundled rates for the recovery of switching and aggregation costs when it was able to do so.
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17. In light of the foregoing, the Commission approves the proposed tariff revisions on an interim basis effective 1 January 1997.
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Laura M. Talbot-Allan
Secretary General |
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This document is available in alternative format upon request.
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