ARCHIVED - Telecom Order CRTC 99-1055
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Telecom Order |
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Ottawa, 3 November 1999 |
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Telecom Order CRTC 99-1055 |
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In Tariff Notice (TN) 363 dated 26 April 1999, MTS Communications Inc. (MTS) proposed to offer its "Welcome Home" trial offer as a standard feature and expand its availability to include multiline customers. |
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File No.: Tariff Notice 363 |
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1.The Welcome Home trial offer provides for new and existing individual line customers who move, to receive up to three eligible features from among Calling Features, Voice Messaging Integration, Voice Messaging Services, and Internet Call Display in any combination for a period of one month, free of charge. MTS has determined that the "Welcome Home" offer is successful and has been a good incentive for customers to subscribe to its calling features. The Welcome Home trial was initially introduced in 1995 and was to terminate on 30 June 1999. |
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2.The Commission notes that MTS is proposing to make the service a standard feature. Any long-term promotion or service may be legitimate, provided that the application is supported by an imputation test showing that the proposal is compensatory. The Commission notes that the imputation test information provided by the company in TN 363 is not complete, as the company did not provide detailed costs and revenue (actual and foregone) information. |
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3.The Commission also notes that Item 2142.3 Note (3) of the MTS Tariff indicates the following: |
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"MTS, when there is sufficient central office capability and capacity, may offer one month free usage of selected CCS or CMS. This offer would be available to all customers within the central office serving area who have not subscribed to those features of CCS or CMS within the past three months." |
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4.The Commission considers that the one-month offer under Tariff Item 2142.3 Note (3) is an open-ended promotion as there is no termination date. The Commission also considers Item 2148.4 Note (3) and Item 6100.3 Note (2) to be similar to Item 2142.3 Note (3) in that respect. With the introduction of local competition, the Commission considers open-ended promotions without supporting economic studies to be inappropriate. |
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5.In light of the foregoing, TN 363 is denied as the economic study is not complete. MTS is directed to file revised tariff pages to delete Item 2142.3 Note (3), Item 2148.4 Note (3), and Item 6100.3 Note (2) from its Tariff. |
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Secretary General |
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This document is available in alternative format upon request and may also be viewed at the following Internet site: www.crtc.gc.ca |
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