Telecom Order
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Ottawa, 21 January 1997
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Telecom Order CRTC 97-83 |
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IN THE MATTER OF an application by Bell Canada (Bell) filed under Tariff Notice 5903 (TN 5903) dated 19 December 1996, for approval of tariff revisions related to wireless access service based on 1997 estimated costs. |
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WHEREAS by letter dated 6 June 1996, the Commission made rates interim for the cellular telephone number and cellular network elements of Bell's line-side access service pending final disposition, and stated that final rates would be made retroactive to 6 June 1996; |
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WHEREAS the Commission granted interim approval, effective 1 July 1996, under Telecom Order CRTC 96-687, to cellular trunk-side access service rates; |
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WHEREAS the Commission notes that these interim trunk-side rates rely on the application of cellular line-side access service rates; |
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WHEREAS by letter dated 21 August 1996, the Commission directed Bell to file revised rates for the cellular telephone number and cellular network elements of Bell's line-side access together with supporting cost studies by 21 November 1996; |
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WHEREAS by letter dated 8 November 1996, Bell indicated that, due to difficulties in obtaining current traffic data, it would be unable to file the revised rates by 21 November 1996, but that it would be in a position to file the revised rates and supporting cost studies by 20 December 1996; |
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WHEREAS by letter dated 5 December 1996, Cantel requested that Bell's anticipated revised rates be granted immediate interim approval and that a credit equal to the difference between the proposed and interim rates be issued to cellular operators for the period 6 June 1996 to 20 December 1996; |
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WHEREAS Bell filed the required revised rates and associated cost studies on 19 December 1996 under TN 5903; |
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WHEREAS Bell requested that the revised rates filed under TN 5903 be granted interim approval effective 20 January 1997; |
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WHEREAS Bell noted that the implementation of the directed rate changes is expected to reduce Bell's Utility segment revenues by $31.6 million in 1997; |
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WHEREAS Bell indicated that the appropriate time for credits is following final disposition of the proposed cellular line-side rates; |
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WHEREAS Bell noted that the application of the proposed cellular line-side rates for trunk-side interconnections does not provide for the appropriate recovery of costs; |
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WHEREAS Bell noted that it would expect that the final cellular trunk-side rates would apply retroactively to the provisioning of trunk-side interconnection service, i.e., 1 July 1996; |
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WHEREAS Cantel estimated that based on the rates proposed by Bell in TN 5903, the amount overpaid to Bell in respect of its wireless access rates in the period 6 June 1996 to 31 December 1996, is approximately $8 million; |
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WHEREAS Cantel submitted that under these circumstances, it would be highly inappropriate for Bell to delay making an adjustment until its access rates have been finalized; |
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WHEREAS the Commission concurs with Cantel's view that it would be inappropriate for Bell to delay making an adjustment until its access rates have been finalized; |
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WHEREAS Cantel noted, for example, that the Commission has granted final approval for monthly rates of $0.14 per cellular telephone number for TELUS Communications Inc. (TCI) and TELUS Communications (Edmonton) Inc. and interim approval for a monthly rate of $0.25 for BC TEL; |
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WHEREAS the Commission notes that Bell's proposed rates are significantly lower than existing Bell rates and are lower than the rates of other Stentor owner companies; |
WHEREAS the Commission notes that Bell stated that the proposed rates are based on 1997 estimated costs reflecting the digital evolution of the network, the deployment of
fibre optics as well as updated traffic assumptions based on a traffic analysis; |
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WHEREAS the Commission intends to pose interrogatories to Bell; |
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WHEREAS the Commission intends to ascertain whether Bell's proposed rates reflect an adequate level of contribution towards the associated embedded and fixed costs; |
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WHEREAS the Commission is of the view that in light of the costing information filed by Bell on 19 December 1996, it would be appropriate to approve, on an interim basis, significant reductions to the current rates; |
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WHEREAS the Commission is of the view that pending final disposition of TN 5903, it would be appropriate to use the existing TCI rates pertaining to cellular telephone number and cellular network elements of its line-side access service, for Bell; |
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WHEREAS the Commission notes that unlike Bell, TCI cellular access service rates do not offer a distinct telephone number reservation rate element; |
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WHEREAS Bell's proposed telephone number reservation rate is $.02 per number in contrast with the existing reservation rate of $.16 per number; |
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WHEREAS the Commission considers an interim rate of $.04 per number for reserving cellular telephone numbers to be appropriate in the circumstances, pending final disposition; |
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WHEREAS Cantel further requested that a process be established which would include the opportunity to pose interrogatories regarding the associated cost studies; and |
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WHEREAS the Commission agrees with Cantel that a process should be established to enable all interested parties to scrutinize Bell's proposal for revised rates - |
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IT IS HEREBY ORDERED THAT: |
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1. TN 5903 is approved on an interim basis pending final disposition, with the following changes: |
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a) The rates for the telephone numbers and network elements of Bell's wireless access service are those as set out in Attachment 1. These rates are to be applied back, in the case of wireless line-side interconnections, to 6 June 1996, and in the case of wireless trunk-side interconnections, to 1 July 1996; |
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b) Bell is directed to issue, within 14 days, tariff pages incorporating the rates as set out in Attachment 1 to this Order for Wireless Access Service Item G-250; and |
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c) Bell is directed to make the necessary interim billing adjustments forthwith. |
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2. Interveners may file interrogatories regarding TN 5903 by 31 January 1997. |
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3. Bell is directed to file responses to any interrogatories by 28 February 1997. |
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4. Interveners may file comments regarding the proposed rates and associated costs by 11 March 1997. |
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5. Bell may file its reply by 21 March 1997. |
Allan J. Darling
Secretary General |