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Ottawa, 30 September 1998
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Telecom Order CRTC 98-968
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On 5 August 1998, TELUS Communications Inc. (TCI) filed Tariff Notice (TN) 1073 proposing to increase the local calling rate for public and semi-public pay telephones from $0.25 to $0.35 for the cash payment option, including the use of the company's Quickchange Prepaid Cash Card.
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File No.: TN 1073
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1.In its application, TCI stated that the local cash payphone rate was not compensatory and that achieving pay telephone rates that cover the cost of providing pay telephone service is consistent with maintaining a viable, affordable and competitive service priced at market-based rates.
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2.TCI also stated that because of the work involved in implementing this change, including the requirement for technicians to visit each pay telephone location, a roll-out period, starting 4 September 1998 (the requested approval date) and completing 31 December 1998, was required for the changeover.
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3.The company stated that the proposal met all the price cap regulation requirements and filed the pertinent information with the application.
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4.On 25 August 1998, the Commission received an intervention from the Public Interest Advocacy Centre (PIAC). It stated, in part, that given the importance of pay phone rates to the public, PIAC assumed that this matter would be made the subject of a public notice proceeding.
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5.PIAC also submitted that the application should not be approved on an interim basis, because there would be significant costs involved should the application not be given final approval.
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6.On 26 August 1998, the Commission received an intervention from the Consumers' Association of Canada, Alberta Branch which stated support for the PIAC intervention.
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7.The Commission notes that TCI is under price cap regulation and that the application is in conformity with the price cap criteria. That is:
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a) the service in question is part of the Other Capped Services sub basket;
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b) with approval of the proposed rate increase, the Service Band Index for the sub basket would increase to 93.70 relative to the Service Band Limit of 100.9 for 1998; and
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c) with approval of the proposed rate increase, the Actual Price Index for total capped revenues would increase to 96.83 relative to the Price Cap Index of 96.85 for 1998.
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8.The Commission finds that the above indices are less than their respective limits under the price-cap regulations, and therefore approves TN 1073 with a roll-out period starting the date of this Order and completing 31 December 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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