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Ottawa, 19 June 1998
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Telecom Order CRTC 98-598
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On 9 February 1998, Amtelecom Inc. (Amtelecom) filed an application for approval of tariff revisions reflecting changes to the primary exchange service rates in the Coldwater exchange.
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File No.: Tariff Notice 31
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1. Under Tariff Notice (TN) 31, Amtelecom proposed to modify the primary exchange service rates for its Coldwater exchange on a revenue-neutral basis.
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2. The modifications proposed by Amtelecom pertain to its current "Zone Rates". Amtelecom's Zone Rates are similar to extra exchange mileage charges whereby an extra mileage based fee is charged to customers outside of a set base rate area.
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3. Amtelecom proposed to consolidate the rates applicable to each Zone Rate Area into a flat Rural Area Rate for residential individual, two and four party line customers.
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4. In order to maintain an overall revenue neutral position, Amtelecom proposed to increase the rates charged to its business customers.
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5. Amtelecom proposed to base rates for business cutomers on the establishment of a uniform rate for individual line service, regardless of location, and the consolidation of Zone Rates into flat rates for two and four party service.
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6. Amtelecom submitted that its proposal to eliminate the Zone Rate structure is in response to strong customer objections made to both the company and the Commission.
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7. Amtelecom submitted that the proposal would improve the quality of service for current two and four party service customers by providing them with the option of subscribing to individual line service at affordable rates.
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8. Amtelecom submitted that the company would benefit from increased penetration of individual line and optional services in addition to other benefits such as simplified rate administration.
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9. Amtelecom noted that it had completed significant capital upgrades to bring urban grade service to its rural areas but that the high Zone Rates proved to be a deterrent to individual line subscription.
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10. Amtelecom advised all 900 affected customers by way of a billing insert. Only five responses were received, all of which were in favour of the proposal.
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11. The Commission notes that the rate restructuring proposed by Amtelecom is not expected to have any immediate impact on the Carrier Access Tariff.
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12. In light of the foregoing, the proposed tariff revisions filed under TN 31 are approved effective 1 July 1998.
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Laura M. Talbot-Allan
Secretary General
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This document is available in alternative format upon request.
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