ARCHIVED - Telecom Order CRTC 97-233
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Telecom Order |
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Ottawa, 21 February 1997
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Telecom Order CRTC 97-233
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IN THE MATTER OF an application filed by Stentor Resource Centre Inc. (Stentor) under Tariff Notice 286 dated 4 April 1996, on behalf of and with the concurrence of BC TEL, Bell Canada, Maritime Tel & Tel Limited, MTS NetCom Inc., The Island Telephone Company Limited, The New Brunswick Telephone Company, Limited and NewTel Communications Inc., as amended by Tariff Notice 286A dated 24 May 1996 on behalf of and with the concurrence of TELUS Communications Inc., (collectively the telephone companies), proposing the introduction of Dialed Number Transport Capability (DNTC).
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WHEREAS Stentor stated that DNTC is an access service for Alternate Providers of Long Distance Services (APLDS) that transports the 800 or 888 toll-free number that was dialed by a caller to the switched local facilities of the end-user subscriber of the APLDS;
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WHEREAS Stentor submitted that the filing is submitted in response to a request by AT&T Canada Long Distance Services Company (AT&T Canada) that Stentor file a tariff for APLDS access to the Dialed Number Identifier (DNI) associated with toll-free service;
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WHEREAS Stentor stated that the proposed rates for DNTC recover the causal costs to develop, implement and maintain DNTC and do not include a mark-up;
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WHEREAS comments and reply comments were filed by AT&T Canada and Stentor, respectively;
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WHEREAS AT&T Canada questioned the level of costs, the appropriate rate and rating elements, and whether the telephone companies should impute the wholesale DNTC rates for their retail DNI feature associated with their 800/888 toll-free service;
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WHEREAS AT&T Canada noted that Stentor proposed to exclude the DNTC monthly rates from the Carrier Access Tariff (CAT) and submitted that all charges associated with the use of this utility network feature must be included as a CAT rate, and imputed by the telephone companies in the determination of their own rates;
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WHEREAS Stentor replied that DNTC service is an optional service that is not required to provide toll-free calling service to end-user subscribers and, accordingly, the tariffed rate is properly excluded from the imputation test;
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WHEREAS Stentor further noted that the costs associated with the provision of the telephone companies' equivalent dialed number display capability are reflected within the recurring charges of the telephone companies' toll-free DNI tariffs;
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WHEREAS Stentor also noted that consistent with the Commission's ruling regarding the split of the telephone companies' rate bases in Implementation of Regulatory Framework - Splitting of the Rate Base and Related Issues Telecom Decision 95-21 dated 31 October 1995, the costs associated with the telephone companies' use of the DNTC functionality is assigned to the Competitive Segment, and that, therefore, it is the Phase II causal cost, not the tariffed rate, which is appropriately included in the imputation test for the telephone companies' services utilising the DNTC functionality;
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WHEREAS the Commission notes that the software required by the telephone companies to provide both their retail DNI service and the wholesale DNTC service to APLDS resides in the end office;
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WHEREAS for the end-user subscriber to be able to receive the DNI, the end-user subscriber must also pay the Utility Segment for Calling Line Identification (CLID) features and a PBX trunk, both of which are also associated with the end office;
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WHEREAS, the Commission considers that the DNTC software provides an end office feature and that to ensure equitable treatment of the DNTC service functionality to APLDS, the software should be treated as a bottleneck service for which the Competitive Segment should impute the associated CAT rate;
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WHEREAS with respect to the level of costs used to support the DNTC CAT rate, the Commission is of the view that the costs to provide the DNTC functionality to the Competitive Segment and to the APLDS should not be materially different;
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WHEREAS the Commission considers that for the purposes of the imputation test, a DNTC CAT rate should be developed using an "all-carriers" approach whereby the average cost of the DNTC functionality is calculated using the combined demand of the telephone companies' Competitive Segment and the APLDS;
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WHEREAS the Commission considers that cost recovery should be assessed on an activity basis where cost recovery is reasonably assured and, accordingly, that the two components of the tariff - a one time service charge to recover order and line provisioning costs and a recurring monthly per circuit charge - as proposed by Stentor, are appropriate; and
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WHEREAS the Commission is of the view that the rates should include a 25% mark-up -
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IT IS HEREBY ORDERED THAT:
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1. Tariff Notices 286 and 286A are denied.
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2. The telephone companies are directed to file proposed tariffs for DNTC service consistent with the above principles within 30 days of the date of this Order.
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Allan J. Darling
Secretary General |
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- Date modified: