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Ottawa, 11 December 1998
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Telecom Order CRTC 98-1247
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On 17 August 1998, BC TEL filed Tariff Notice 3843 proposing to introduce Asymmetric Digital Subscriber Line (ADSL) Access to Business Line Service. BC TEL proposed a service charge of $225.00 and a monthly rate of $45.00 for this service. This service provides an ADSL service provider with access to the network access lines of BC TEL business local exchange service subscribers for the purpose of connecting the subscribers' network access lines to the service provider's ADSL equipment co-located in BC TEL central offices.
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File No.: Tariff Notice 3843
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1.BC TEL stated that the rates for this service have been established based on market value and market alternatives. BC TEL stated that the normal 25% mark-up for essential services is not appropriate because there is no reasonable basis to designate the proposed service as "essential", given the market conditions attending the high-speed data services sector.
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2.BC TEL stated that there are a number of alternatives for providers of ADSL-based services to provide such services to BC TEL local customers. BC TEL also stated that there are other competitive access facilities available for other types of high-speed data access services that are not ADSL-based.
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3.The Commission notes that the proposed service does not provide a complete high-speed data access service. Rather, it provides one component of such a service, namely, the facilities needed to link the company's or a competitor's ADSL equipment to the local loops of BC TEL business local exchange service customers. In the Commission's view, notwithstanding the level of competition that may exist in various sectors of the high-speed data access market, the service in question is currently more in the nature of an essential service. The Commission notes in this regard that the approved rates for BC TEL's ADSL Access to Residence Line Service are based on a 25% mark-up as required for services in the nature of essential services.
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4.The Commission notes further that BC TEL is the only Stentor company to propose different rates for ADSL Access to Residence Line Service and ADSL Access to Business Line Service. While there may be market justification for different levels of rates for residence and business ADSL high-speed data access services, in the Commission's view, the company has not provided adequate justification for a difference in rates for this particular component.
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5.In light of the above, the Commission approves the proposed service, but at rates that are the same as the current ADSL Access to Residence Line Service rates.
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Secretary General
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This document is available in alternative format upon request.
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