ARCHIVED -  Telecom Order CRTC 97-1837

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Telecom Order

Ottawa, 16 December 1997
Telecom Order CRTC 97-1837
On 17 October 1997, Québec-Téléphone filed an application under Tariff Notice 186, for approval of revisions to its General Tariff, to become effective 1 January 1998, and providing for a rate increase of $3.25 per month for all local access services, a rate increase applicable to residence subscribers of $0.10 per month per Extended Area Service (EAS) link and changes to its Centrex discount structure.
File No.: Tariff Notice 186
1. In Regulatory Framework for Québec-Téléphone and Télébec ltée, Telecom Decision CRTC 96-5, 7 August 1996 (Decision 96-5), the Commission expressed the preliminary view that annual increases of $2.00 per month per local access line should be implemented by Québec-Téléphone and Télébec ltée (Télébec) effective 1 January 1998 unless a particular local rate could be shown to be compensatory.
2. In Decision 96-5, the Commission also directed Bell Canada (Bell), Québec-Téléphone and Télébec to reduce Other Line Charges to half their current level effective 1 January 1997 and to eliminate them effective 1 January 1998.
3. On 21 November 1997, the Commission issued interrogatories to which the company responded on 1 December 1997.
4. Québec-Téléphone submitted that its proposal to increase local rates by $3.25 per month was consistent with Decision 96-5 in that $1.25 of the proposed increase was to compensate the company for revenue losses resulting from the elimination of Other Line Charges in 1998.
5. The Commission considers that increases of $3.25 per month should apply to rates for local access services effective 1 January 1998.
6. The Commission considers Québec-Téléphone's proposed amendments to the volume discount schedule for Centrex services to be acceptable.
7. Québec-Téléphone noted that since implementing the revision to its EAS criteria mandated by Decision 96-5, 10 new EAS links had been established and 12 more were under assessment.
8. Québec-Téléphone submitted that the proposed increase of $0.10 per EAS link would compensate it for the toll revenue losses stemming from the establishment of these links.
9. The Commission considers that Québec-Téléphone's EAS link rate proposal would result in rebalancing beyond that permitted by Decision 96-5. Moreover, the Commission notes that existing rates provide a measure of compensation to the company for establishing EAS links.
10. In light of the foregoing, the Commission orders that:
(a) Québec-Téléphone's proposal to increase the rates per EAS link applicable to residence subscribers is denied.
(b) The proposed tariff revisions to become effective on 1 January 1998 are approved subject to the modifications required by (a)
(c) Québec-Téléphone is directed to issue revised tariff pages within 10 days of the date of issuance of this Order.
Laura M. Talbot-Allan
Secretary General
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