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ARCHIVED -  Telecom Order CRTC 97-802

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Telecom Order CRTC 97-802

 

Ottawa, 11 June 1997

 

On 14 May 1997, NewTel Communications Inc. (NewTel) filed an application under Tariff Notice 522 proposing revisions to the company’s General Tariff providing for a move from five rate bands to one rate band for the additional monthly charges paid by residence and business primary exchange service customers who have Extended Area Service (EAS).

 

File No.: Tariff Notice 522

 

In its application NewTel stated that by moving to one rate band for EAS, the rate structure would then be consistent with the Community Calling Plan rate structure as approved by the Commission in Telecom Order CRTC 97-381.

 

NewTel submitted that this proposal would better meet customer requirements by providing a less complicated rate schedule and would simplify customer communications efforts and reduce administration costs.

 

Under the NewTel proposal the residence EAS rate would move from between $2.10 and $3.10 per month to a single rate of $3.10 per month. Business EAS rates would move from between $4.20 and $6.20 per month to a single rate of $6.20 per month.

 

In addition, NewTel proposed to reformat the EAS exchange list to improve readability.

 

The Commission considers this application by NewTel to consolidate EAS rate bands to be, in effect, an application for a local rate increase.

 

Under Telecom Decision CRTC 97-9 Price Cap Regulation and Related Issues (Decision 97-9), the Commission determined that the telephone companies should be allowed a basic residential local service weighted-average rate increase of up to a maximum of $3.00 at the start of the price cap regime.

 

Under Telecom Public Notice CRTC 97-11 Implementation of Price Cap Regulation, 1997 Contribution Charges and Related Issues (PN 97-11), the Commission initiated a proceeding to implement Decision 97-9.

 

In the Commission’s view, tariff revisions for basic residential rates such as the revisions to the non-optional residential EAS rates proposed under Tariff Notice 522 are more appropriately addressed in the context of the proceeding established by PN 97-11.

 

In light of the foregoing, the Commission orders that:

 

The application filed under Tariff Notice 522 is denied.

 

Allan J. Darling
Secretary General

 

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