ARCHIVED - Telecom Order CRTC 97-406
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Ottawa, 27 March 1997
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Telecom Order CRTC 97-406
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IN THE MATTER OF applications from Maritime Tel & Tel Limited (MT&T) filed under Tariff Notices 622 and 623 (TNs 622 and 623) dated 17 July 1996, for approval of tariff revisions providing for a restructuring of residence and business single line and business multiline Network Exchange Service (NAS) rates.
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WHEREAS under TN 622, MT&T proposed to:
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(a) consolidate NAS rates for residence and business customers over one, two or three steps into one province-wide rate for residence customers and two rate groups for business customers;
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(b) introduce a monthly rate differential for customers served by analog switching equipment; and
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(c) eliminate single-party mileage charges in all remaining exchanges not yet declared as single-party exchanges;
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WHEREAS MT&T submitted that it is necessary to change its rate group structure to reflect the cost structures associated with providing service;
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WHEREAS MT&T proposed that rates be consolidated over one, two or three steps, depending on the forecast impact on the customer;
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WHEREAS MT&T proposed that the first phase of the rate consolidation be effective 1 October 1996, the second phase be effective 1 May 1997 and the third phase be effective 1 January 1998;
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WHEREAS MT&T submitted that the proposed rate changes mitigate, to the extent possible, the impact on the customer in terms of both the dollar and percentage increase on both NAS and customers' total telecommunications bills;
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WHEREAS MT&T submitted that the proposed analog switching differential and the elimination of single-party mileage charges, in addition to addressing some value of service issues, will mitigate the effect of rate group consolidation increases seen by customers in smaller exchanges;
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WHEREAS under TN 623, MT&T proposed to:
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(a) restructure Multiline Trunk rates by reducing the number of rate groups from six to two in three steps by 1 January 1998;
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(b) split existing Centrex service offerings into a Digital category and an Analog category; and
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(c) decrease the minimum buy-in rate for Small Centrex from 30 lines to 1 line;
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WHEREAS MT&T submitted that the restructuring of Multiline Trunk and Centrex rates would meet the following objectives:
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(a) reduce the subsidies flowing from MT&T's business services to residential service;
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(b) establish sustainable rate structures prior to the implementation of price caps;
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(c) establish rates that will contribute to the competitiveness of Nova Scotia business and to make the province a more attractive place for new businesses to develop and to locate; and
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(d) move towards cost based and ultimately market-based pricing for local services;
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WHEREAS the Commission, under Telecom Public Notice CRTC 96-31 (PN 96-31), conducted a public procedure to allow for the examination and the filing of comments by interested parties;
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WHEREAS the Commission received 25 letters of comments from subscribers as well as comments from the Metro Halifax Chamber of Commerce, Call-Net Enterprises Inc. (Call-Net), the Canadian Cable Television Association (CCTA) and the Canadian Business Telecommunications Alliance (CBTA);
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WHEREAS Call-Net also filed an application dated 8 January 1997, supplemented by a submission dated 5 February 1997, requesting, among other things, deferral of certain current and any future tariff filings for rate restructuring and expansion of free calling areas, to a comprehensive general proceeding involving all Stentor companies (the Call-Net application);
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WHEREAS the Call-Net application was filed on behalf of AT&T Canada LDS, Call-Net, fONOROLA, Fundy Cable Ltd./Ltée and Rogers Network Services;
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WHEREAS subscribers generally objected to a single, province-wide rate when they did not perceive that the service was uniform across the province;
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WHEREAS CCTA, Call-Net and CBTA submitted that the proposed restructuring was designed to preclude local competition and should be denied;
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WHEREAS MT&T replied that the purpose of its rate restructure proposal is to move the rates charged for services closer to costs;
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WHEREAS MT&T replied that the proposed higher rates for residence and business services outside of Metro Halifax should provide new entrants with a greater opportunity to compete for customers throughout Nova Scotia;
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WHEREAS MT&T replied that the proposed elimination of Single Party mileage charges and discounted rates for customers served by analog equipment reflect the uniform price for uniform service consideration;
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WHEREAS MT&T also replied that the proposed changes for Multiline and Centrex services include those designed to meet customers' expressed needs and will make prices in Nova Scotia more comparable to those in other areas of the country;
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WHEREAS based on the record of the proceeding initiated pursuant to PN 96-31 (including the Call-Net application), the Commission is of the view that deferral of consideration of TNs 622 and 623 is not appropriate;
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WHEREAS the Commission considers it appropriate to move MT&T's rates closer to costs;
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WHEREAS the Commission is of the view that a phased-in approach will mitigate the impact of rate increases on customers;
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WHEREAS the Commission considers that the proposed analog switching differential and the elimination of Single Party mileage charges recognizes value-for-service concerns expressed by customers and will mitigate the effect of rate group consolidation increases experienced by customers in smaller exchanges;
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WHEREAS the Commission considers that, given the current level of MT&T's rates for business single line NAS, Multiline and Centrex services, the proposed changes to the rates are appropriate;
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WHEREAS the Commission notes that the introduction of the lower rated Analog category maintains the current price relationship with the revised Multiline rates; and
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WHEREAS the Commission considers that it would be appropriate to implement the proposals submitted under TNs 622 and 623 in two phases effective 1 May 1997 and 1 January 1998 -
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IT IS HEREBY ORDERED THAT:
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The proposals submitted by MT&T under TNs 622 and 623 are approved effective 1 May 1997.
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Allan J. Darling
Secretary General |
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- Date modified: