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Telecom Public Notice CRTC 98-9
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Ottawa, 11 May 1998 |
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QUÉBEC-TÉLÉPHONE AND TÉLÉBEC LTÉE - 1998 CONTRIBUTION RATE
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Reference: 8695-C12-05/98 |
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I BACKGROUND |
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In Implementation of Regulatory Framework
for Québec-Téléphone and Télébec ltée, Telecom Decision CRTC 97-21,
18 December 1997 (Decision 97-21), the Commission implemented the split
rate base for these companies effective 1998 and set interim 1998
contribution rates of $0.0561 for Québec-Téléphone and $0.0588 for Télébec
ltée (Télébec). |
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In Télébec - 1997 Contribution Charges,
Telecom Public Notice CRTC 97-29, 31 July 1997 and Québec-Téléphone -
1997 Contribution, Telecom Public Notice CRTC 98-7, 23 March 1998 (the
1997 contribution proceedings), the Commission initiated proceedings to
finalize the 1997 contribution rates for these companies. Those proceedings
are still in progress. |
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The Commission hereby initiates a proceeding
to finalize the 1998 contribution rates for Québec-Téléphone and Télébec. |
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II 1998 CONTRIBUTION REQUIREMENT |
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A. De-Averaged Per-Minute Contribution
Mechanism for Trunk-Side and Line-Side Connections |
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In the 1997 contribution proceedings, the
Commission directed Québec-Téléphone and Télébec to show cause as to why a
de-averaged per-minute contribution rate applicable to trunk-side
connections, as approved in Revisions to the Mechanism to Recover
Contribution Charges, Telecom Decision CRTC 95-23, 4 December 1995,
should not apply in their territories. |
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The Commission also directed Québec-Téléphone
and Télébec to show cause as to why a de-averaged per-minute contribution
mechanism for line-side connections, as approved in Per-Minute
Contribution Mechanism for Line-Side Connections, Telecom Decision CRTC
96-12, 12 December 1996, should not apply also in their territories. |
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Notwithstanding the companies' responses to
the directions to show cause in paragraphs 4 and 5 above, Québec-Téléphone
and Télébec are to provide a breakdown of their proposed 1998 contribution
rates by peak and off-peak periods for trunk-side and line-side
connections, with all supporting calculations. |
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B. Treatment of 1997 Excess Earnings |
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The Commission indicated in Decision 97-21
that any excess earnings for 1997 should be dealt with in the proceedings
to finalize the Québec-Téléphone and Télébec contribution rates for 1998.
Where applicable, these companies are to file proposals in this regard,
with supporting arguments. |
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C. Accounting Reserve for Pole Rental |
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In Decision 97-21, the Commission considered
the issue of the amortization period for Télébec's accounting reserve for
pole rental. For purposes of calculating the interim 1998 contribution
rate, the Commission set a two-year amortization period for the accounting
reserve balance as at 31 December 1997. It indicated that the amortization
period would be finalized in the proceeding to determine Télébec's final
1998 contribution rate. Also, Télébec intended to purchase a large number
of poles before the end of 1997 and to treat the purchase as it would any
other operating expense. The Commission intended to re-assess, in the same
proceeding, the need to maintain the accounting reserve. Accordingly, the
Commission directs Télébec to file its proposals relating to these points,
with supporting arguments. |
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D. Directory Operations |
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In Decision 97-21, the Commission indicated that the
reasonableness of the deemed earnings from directory operations would be
addressed in the proceedings to finalize the 1998 contribution rates for
Québec-Téléphone and Télébec. Accordingly, the Commission directs them to
file their proposals in this regard, with supporting arguments. |
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E. Demand Information |
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Québec-Téléphone and Télébec are directed to
file, by 22 June 1998, their forecast 1998 split rate base results, as
illustrated in Attachment B to Implementation of Regulatory Framework -
Splitting of the Rate Base and Related Issues, Telecom Decision CRTC
95-21, 31 October 1995, adjusted to adapt to their respective accounting
system. The companies are also directed to include explanations, with
supporting data, for any change resulting from significant changes to
methodology, or from variances in revenue, investment or expenses over the
most current 1997 Phase III results, arranged by Utility and Competitive
segments. Changes to methodology include those relating to accounting
changes or to the implementation of the split rate base. |
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By the same date, Québec-Téléphone and Télébec
are to file proposed 1998 contribution rates. These proposed rates are to
be based on the companies' forecast contribution requirements reflected in
the split rate base results, budget views and forecasts of
contribution-eligible minutes for 1998. Also to be reflected are the local
rate increases approved for Québec-Téléphone in Telecom Order CRTC 97-1837
dated 16 December 1997, and approved on an interim basis for Télébec in
Telecom Order CRTC 97-1787 dated 1 December 1997 as amended by Telecom
Order CRTC 97-1787-1 dated 4 December 1997. |
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Québec-Téléphone and Télébec are to provide forecasts of
1998 minutes for contribution-eligible services as defined in Regulatory
Framework for Québec-Téléphone and Télébec ltée, Telecom Decision CRTC
96-5, 7 August 1996 (Decision 96-5). |
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The Commission directs AT&T Canada Long
Distance Services Company (AT&T Canada LDS), fONOROLA Inc. (fONOROLA) and
Sprint Canada Inc. (Sprint), who originate or terminate
contribution-eligible traffic in the territories of Québec-Téléphone or
Télébec, to file for each company, by 22 June 1998, their forecast 1998
contribution-eligible minutes as defined in Decision 96-5. |
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On 11 May 1998, the Commission addressed
interrogatories relating to this Public Notice to Québec-Téléphone, Télébec
and the interconnecting carriers. |
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III PROCEDURE |
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Québec-Téléphone and Télébec are made parties
to this proceeding. AT&T Canada LDS, fONOROLA and Sprint (the
interconnecting carriers) are also made parties to this proceeding. |
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Other persons wishing to participate in this
proceeding must notify the Commission of their intention to do so by
writing to Mrs. Laura M. Talbot-Allan, Secretary General, CRTC, Ottawa,
Ontario, K1A 0N2, Fax: 819-953-0795, by 26 May 1998. Parties are to
indicate in the notice their Internet email address, if available. If
parties do not have access to the Internet, they are to indicate in their
notice whether they wish to receive disk versions of hard copy filings. The
Commission will issue a complete list of parties and their mailing
addresses (including Internet email addresses if available), identifying
those parties who wish to receive disk versions. |
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Québec-Téléphone, Télébec and the
interconnecting carriers are to file the information indicated in Part II
of this Public Notice, serving copies on all parties, by 22 June 1998. |
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By 22 June 1998, Québec-Téléphone and Télébec
are directed to file tariff pages setting out their proposed contribution
charges for 1998. Underlying calculations are to be provided by the same
date. |
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Those parties to whom the Commission has
addressed interrogatories, as noted in Part II, are directed to file
responses, serving copies on all parties, by 22 June 1998. |
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Parties may file requests with the Commission
for public disclosure of information for which confidentiality has been
claimed, setting out the reasons for disclosure, by 29 June 1998, serving
the party or parties asserting confidentiality. |
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Replies to requests for public disclosure are
to be filed with the Commission and served on the party or parties making
the request by 2 July 1998. |
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The Commission will issue a determination with
respect to any requests filed pursuant to paragraph 20 as soon as possible.
The Commission intends to direct that any information to be disclosed
pursuant to its determination be placed on the public record and served on
all parties by 22 July 1998. |
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Any party may address interrogatories to any
party who files information pursuant to paragraphs 17, 18 or 19 above. Any
such interrogatories must be filed with the Commission and served on the
party or parties in question by 29 July 1998. |
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Responses to interrogatories addressed pursuant to
paragraph 23 are to be filed with the Commission and served on all parties
by 19 August 1998. |
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Requests by parties for further responses to
their interrogatories, specifying in each case why a further response is
both relevant and necessary, and requests for public disclosure of
information for which confidentiality has been claimed, setting out the
reasons for disclosure, must be filed with the Commission and served on the
party or parties in question by 26 August 1998. |
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Written responses to requests for further
responses to interrogatories and for public disclosure must be filed with
the Commission and served on the party making the request by 31 August
1998. |
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The Commission will make a determination with
respect to requests for disclosure and for further responses as soon as
possible. The Commission intends to direct that any information to be
disclosed pursuant to its determination be filed with the Commission and
served on all parties by 21 September 1998. |
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All parties may file comments with the
Commission on any matter raised in this proceeding, serving copies on all
other parties, by 30 September 1998. |
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Québec-Téléphone and Télébec may file reply
comments, serving copies on all parties, by 13 October 1998. |
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Where a document is to be filed or served by a
specific date, the document must be actually received, not merely mailed,
by that date. |
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In addition to hard copy filings, parties are
encouraged to file with the Commission electronic versions of their
submissions in accordance with the Commission's Interim Telecom
Guidelines for the Handling of Machine-Readable Files, dated
30 November 1995. The Commission's Internet email address for
electronically filed documents is public.telecom@crtc.gc.ca.
Electronically filed documents can be accessed at the Commission's Internet
site at www.crtc.gc.ca. |
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This document is available in alternative format upon
request. |
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Laura M. Talbot-Allan
Secretary General |