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Ottawa, 7 July 1998
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Telecom Order CRTC 98-669
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On 5 February 1998, BC TEL filed an application under Tariff Notice (TN) 3765 for approval of revisions to the company's General Tariff providing for the introduction of Item 500, Solutions for Small Business.
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BC TEL subsequently filed the following amendments to TN 3765:
-TN 3765A dated 17 March 1998;
-TN 3765B dated 7 May 1998; and
-TN 3765C dated 15 May 1998.
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On 16 February 1998, BC TEL filed an application under TN 3770 for approval of revisions to the company's General Tariff providing for the introduction of Item 501, BC TEL Residential Package.
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On 8 May 1998, BC TEL filed an amendment to TN 3770 under TN 3770A.
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File Nos.: TNs 3765 and 3770
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1.The BC TEL Solutions for Small Business filed under TN 3765 is a limited time offer which would provide business individual line customers with the opportunity to subscribe to a package offering consisting of:
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i) an individual business line;
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ii) one hour of Intra B.C. customer dialed (non-calling card) message toll; and
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iii) a choice of up to three SmartTouch( Services and/or Integrated Voice Messaging Services.
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2.Under TN 3765, BC TEL proposed rates of $57.99 or $65.99 per month, depending on the Rate Group of the customer.
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3.BC TEL submitted that the enrolment period for the Residential Package would consist of the two months immediately following the effective date of the offer and that the service and rates would be in effect for a period of 12 months for each customer commencing from the enrolment date.
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4.Under TN 3765A, BC TEL proposed to include the Message Relay Centre charge in the packaged rate for the offering.
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5.Under TN 3765B, BC TEL proposed to change the item number of Solutions for Small Business to Item 272 and to relocate that Item in the revised Section XIII, Packaged Services of the General Tariff.
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6.Under TN 3765C, BC TEL proposed to revise the rate structure of the offering to align with the new rate band structure approved by the Commission in Telecom Order CRTC 98-463.
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7.The BC TEL Residential Package filed under TN 3770 is a limited time offer which would provide single line residential customers with the opportunity to subscribe to a package offering consisting of:
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i) an individual residential access line;
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ii) an initial 60 minutes of customer-dialed station-to-station message toll calling to destinations within Canada; and
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iii) a choice of up to three specified SmartTouch( Services and/or Integrated Voice Messaging Services.
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8.BC TEL proposed rates for the Residential Package of between $35.95 and $41.95 per month, depending on the Exchange Rate Band of the customer.
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9.BC TEL proposed that the enrolment period for the Residential Package consist of the three months immediately following the effective date of the offer and that the service and rates would be in effect until 31 March 1999.
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10.Under TN 3770A, BC TEL proposed to change the end date indicated in the proposed tariff to wording which reflects an 11 month subscription period following the determined effective date. In addition, BC TEL requested that it be allowed to select an effective date following the approval of TN 3770, as amended, within two business days of the date of approval.
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11.Comments were received from Call-Net Enterprises Inc., the Canadian Cable Television Association (CCTA) and AT&T Company Canada Long Distance Services Company, (collectively, the interveners).
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12.The interveners submitted that the Commission, in Telecom Orders CRTC 97-1345 and 97-1764 (Orders 97-1345 and 97-1764), denied the bundling of primary exchange service and toll service until such time as the barriers to local competition are largely eliminated.
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13.The interveners argued that Local Competition, Telecom Decision CRTC 97-8, 1 May 1997 (Decision 97-8), which stipulated that the Stentor companies can bundle their Utility segment services with forborne services, established the framework for local service competition but did not deal with the significant practical obstacles of implementing local competition, while Order 97-1764 does deal with implementation issues.
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14.The interveners further argued that the Commission's determinations in Forbearance - Regulation of Toll Services Provided by Incumbent Telephone Companies, Telecom Decision CRTC 97-19, 18 December 1997 (Decision 97-19), are merely a restatement of the broad policy set out in Implementation of Price Cap Regulation - Decision Regarding Interim Local Rate Increases and Other Matters, Telecom Decision CRTC 97-18, 18 December 1997, and do not affect Order 97-1764.
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15.CCTA submitted that the bundling of local and toll services would forestall local competition.
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16.BC TEL replied that the interveners have mischaracterized the Commission's decisions regarding the bundling of utility and other telecommunications services.
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17.BC TEL submitted that Review of Regulatory Framework, Telecom Decision CRTC 94-19, 16 September 1994 (Decision 94-19), and Decisions 97-8 and 97-19 determined that the bundling of utility and other telecommunications services was appropriate and set the imputation test requirements that were to be met for such bundled services.
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18.BC TEL argued that the finding in Decision 97-19 that bundling is permitted supersedes the Commission's earlier finding in Order 97-1764 that bundling of primary exchange and toll services would not be permitted until the barriers to facilities based local competition are largely eliminated.
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19.In Joint Marketing and Bundling, Telecom Decision CRTC 98-4, 24 March 1998 (Decision 98-4), the Commission concluded that there is no requirement for competitive criteria or competitive thresholds to be met prior to allowing the bundling of local exchange and competitive services, provided that the bundling rules, which act as competitive safeguards, are satisfied.
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20.The Commission considers that TNs 3765, as amended, and 3770, as amended, are consistent with the bundling rules as defined in Decisions 94-19, 97-8, 97-19 and 98-4.
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21.In light of the above, the Commission orders that the applications filed by BC TEL under TN 3765, as amended, and under TN 3770, as amended, be approved.
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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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