ARCHIVED - Telecom Order CRTC 97-227
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Ottawa, 20 February 1997
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Telecom Order CRTC 97-227
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IN THE MATTER OF an application filed by MTS NetCom Inc. (MTS) under Tariff Notice 240 dated 16 December 1996, for approval of tariff revisions to: (1) allow the payment of service charges related to the provision of residence primary exchange service in monthly installments over a period of up to six months, (2) provide for the removal of all charges related to the provision of Toll Restriction service in the residence market, and (3) provide for the introduction of a $10 service charge to reactivate toll service.
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WHEREAS these modifications were filed pursuant to Local Service Pricing Options, Telecom Decision CRTC 96-10, issued 15 November 1996 (Decision 96-10);
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WHEREAS the Commission notes that MTS proposed that the interest rate component of the surcharge for late payments apply when a customer prearranges with the company to spread the payment of service charges;
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WHEREAS MTS indicated that Toll Restriction service will not prevent any person at the customer's premise from accepting collect calls or third number calls;
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WHEREAS BC TEL, Maritime Tel & Tel Limited, The Island Telephone Company Limited and The New Brunswick Telephone Company, Limited proposed to introduce Call Guardian( service, providing customers choosing Toll Restriction with the option of also blocking collect calls and/or third number calls;
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WHEREAS the Commission is of the view that it would be desirable for customers choosing Toll Restriction service to also be provided with the option of blocking collect calls and/or third number calls at no additional charge;
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WHEREAS Decision 96-10 directed the companies to show cause why the interest rate applicable to late payment charges should not be based on a formula such as that approved by the Commission for Bell Canada (Bell) and BC TEL;
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WHEREAS MTS submitted that it establishes the interest rate for overdue accounts taking into account comparibility with the interest rates used by other providers of utility services in Manitoba;
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WHEREAS the company submitted that it also considers an assessment of the administration costs of overdue accounts, comparability with other Canadian telephone companies, and the use of interest rate as a deterrent by setting it at a level that will encourage customers to pay promptly;
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WHEREAS MTS argued that the interest rate it charges must allow the company to remain competitive with other utility providers for the customer payment;
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WHEREAS MTS submitted that the methodology it uses to establish the interest rate of 1.50% per month meets the operating conditions in Manitoba;
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WHEREAS the company proposed to retain its existing methodology to establish the interest rate for overdue accounts and its current rate of 1.50% per month;
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WHEREAS the Commission notes the formula of "prime + 7%" approved for Bell and BC TEL is based on costs;
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WHEREAS the Commission considers that MTS has not demonstrated that its costs for extending credit were higher than "prime + 7%";
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WHEREAS the Commission is of the view that the interest rate associated with the deferred payment plan for installation charges should not be punitive; and
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WHEREAS the Commission is of the view that MTS should adopt the interest rate formula approved for Bell and BC TEL -
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IT IS HEREBY ORDERED THAT:
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1. The proposed tariff revisions are approved.
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2. MTS is to:
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(a) provide customers with the option of blocking collect calls and third number calls at no additional charge when this becomes technically feasible;
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(b) file the appropriate tariff revisions when it is able to do (a) above;
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(c) notify the Commission, within 30 days of the date of this Order, of when it expects to be able to satisfy (a) above; and
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(d) adopt the interest rate formula approved by the Commission for Bell and BC TEL and file revised tariffs within 30 days of the date of this Order.
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Allan J. Darling
Secretary General |
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- Date modified: