ARCHIVED -  Telecom Order CRTC 97-945

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Telecom Order

Ottawa, 9 July 1997
Telecom Order CRTC 97-945
On 2 May 1997 Télébec ltée (Télébec) filed an application under Tariff Notice 139, for approval of tariff revisions providing for a market trial to study the impact of future Extended Area Service (EAS) links.
File No.: Tariff Notice 139
1. Télébec's proposed market trial provided free 1+ dialing between specific exchanges from 1 July 1997 to 31 December 1997.
2. The Commission denied a similar proposal made by Télébec under Tariff Notice 128 dated 21 January 1997, on the basis that Télébec did not address the market trial criteria set out in Telecom Order CRTC 95-453 dated 12 April 1995.
3. Télébec stated that the objective for the proposed market trial is to collect data on the occurrence of toll by-pass, traffic stimulation, community of interest and the development of customer calling patterns.
4. Télébec submitted that the data gathered during this market trial would be useful in the context of planning new EAS links, developing optional EAS links and formulating future rate restructuring proposals.
5. The Commission considers that a market trial is intended to evaluate the potential offering of a specific new service, such as optional EAS, under market conditions.
6. In the Commission's view, the proposed market trial would not provide an appropriate basis for the evaluation of a potential service offering.
7. The Commission would be prepared to consider an application for a market trial of optional EAS service whereby the company would test optional EAS price-points under market conditions.
8. The Commission would also be prepared to consider an application that proposes variations from the EAS criteria whereby a new link would be established pursuant to a subscriber vote and such that other subscribers would not subsidize the offering of new links.
9. The Commission would also be prepared to consider a company wide rate restructuring application.
10. In light of the foregoing, the tariff revisions proposed under Tariff Notice 139 are denied.
Laura M. Talbot-Allan
Secretary General
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