ARCHIVED -  Telecom Order CRTC 98-1135

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Telecom Order

Ottawa, 12 November 1998
Telecom Order CRTC 98-1135
On 9 July 1998, BC TEL filed an application under Tariff Notice (TN) 3831, amended by TN 3831A dated 30 July 1998, introducing General Tariff Item 276, BC TEL PRIME Loyalty Promotion, for loyal single-line residential customers, which offers a choice of up to two free SmartTouch services or Integrated Voice Messaging Services features or the option to instead select a choice of non-tariffed alternative long distance calling benefits, per month, for a period of up to 12 months, from 5 October 1998 to 30 September 1999.
File No.: TN 3831
1.On 13 August 1998, the Commission issued Telecom Order CRTC 98-792 granting interim approval to the application.
2.In its comments dated 5 August 1998, Call-Net Enterprises Inc. (Call-Net) submitted that the application should not be given either interim or final approval pending the resolution of a 15 May 1998 joint application by a number of parties to review and vary the portion of Joint Marketing and Bundling, Telecom Decision CRTC 98-4, 24 March 1998 (Decision 98-4), that permitted Stentor member companies to bundle tariffed services with services of an affiliated or non-affiliated company or with non-telecommunications services offered in-house by the telephone company.
3.Call-Net submitted that barriers to facilities-based local competition continue to exist and that these barriers are especially significant in the residential sector of the local market, which is the sector that BC TEL is targeting with the BC TEL PRIME Loyalty Promotion. Call-Net argued that until these barriers are eliminated, permitting BC TEL to bundle local services with other competitive services will have deleterious effects on the introduction of local competition.
4.In its reply, BC TEL argued that Call-Net's submission was a repetition of previous unsuccessful arguments, which does not warrant deferment, much less denial, of TN 3831.
5.In a ruling dated 25 May 1998 with respect to the joint review and vary application, the Commission noted that competitors are free to comment on a case-by-case basis on other filings for bundling from the Stentor member companies.
6.The Commission considers the BC TEL PRIME Loyalty Promotion to be a legitimate promotion of limited duration that is therefore exempt from the application of the imputation test.
7.The Commission notes that the service bundle is consistent with the bundling rules as set out in a number of Commission decisions including Decision 98-4.
8.In light of the foregoing, the Commission orders that the application filed by BC TEL under TNs 3831 and 3831A be granted final approval.
Secretary General
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