ARCHIVED - Telecom Order CRTC 99-1218
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Telecom Order CRTC 99-1218 |
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| Ottawa, 23 December 1999 | |
| On 1 October 1999, Northern Telephone Limited (Northern) filed an application for approval of tariff revisions introducing a billing and collection service for interexchange carriers. | |
| File No.: Tariff Notice 109 | |
| 1. Northern noted that the proposed billing and collection service was filed in accordance with Review of contribution regime of independent telephone companies in Ontario and Quebec, Telecom Decision CRTC 99-5, 21 April 1999 (Decision 99-5). | |
| 2. In Decision 99-5, the Commission directed the independent telephone companies (independents) in Ontario and Quebec to file tariffs unbundling their billing and collection services. | |
| 3. The Commission noted that the direct toll portion of the independent Carrier Access Tariff (CAT) rates included expenses related to billing and collection services the independents were carrying out on behalf of the incumbent toll carrier. The Commission concluded that unbundling the direct toll component, to the extent of removing those services which can be provided by alternate providers of long distance services themselves, such as billing and collection, would reduce the independents' CAT rates and help to reduce the barriers to competitive entry. | |
| 4. Northern's application proposed two separate billing and collection service periods. The initial period would run from 1 January 2000 to 30 June 2000 and include a provision whereby O.N. Tel, the incumbent toll carrier, would pay a penalty should it opt out of the billing and collection service prior to 1 July 2000. The second service period would run from 1 July 2000 to 31 December 2000 and would make billing and collection services available on a monthly basis without penalty but at an increased rate. Northern does not intend to provide billing and collection services beyond 31 December 2000. Northern submitted that the time limited nature of the service was justified in light of O.N. Tel's stated intentions to migrate to its own billing and collection system as well as Northern's implementation of a new billing and collection platform scheduled for 1 July 2000. | |
| 5. O.N. Tel opposed the application on the basis that the terms and conditions proposed by Northern, including the time limited nature of the service, failed to meet the requirements of Decision 99-5. | |
| 6. O.N. Tel submitted that the proposed rates were excessive and did not provide enough flexibility to allow the company to begin billing on its own behalf in an orderly manner. | |
| 7. O.N. Tel argued that the Commission should deny TN 109 and order that until Northern files a revised billing and collection tariff that meets O.N. Tel's requirements, Northern is required to continue providing billing and collection services, on an interim basis, according to the current arrangements and pursuant to the interconnection agreement between the two companies. | |
| 8. O.N. Tel also argued that the proposed Billing and Collection Service Agreement should be denied in light of the various changes it brought to the longstanding billing and collection arrangements. | |
| 9. In reply, Northern submitted that the proposed billing and collection service would allow O.N. Tel to make an orderly transition to its own billing and collection system. Northern also noted that the initial service period coincides with O.N. Tel's previously stated transition plans. Northern stated that it would be prepared to withdraw the proposed billing and collection service agreement if this would facilitate the approval of TN 109. | |
| 10. The Commission notes that the rates, terms and conditions proposed by the company differ significantly from those proposed by the other independents in the province of Ontario. The Commission notes that the economic studies filed in support of the proposed rates include a number of questionable cost inclusions. The Commission is concerned that the proposed rates are not just and reasonable. | |
| 11. The Commission is, however, of the view that the time limited nature of the service is appropriate in light of O.N. Tel's stated objective of migrating to its own billing and collection system. Moreover, the Commission is of the view that the initial service period provides ample time for O.N. Tel to migrate its customers to it own billing and collection system and that no interim disposition is required. | |
| 12. In light of the foregoing, the Commission approves Tariff Notice 109 on a final basis effective 1 January 2000 with the following modifications: the monthly recurring charge per customer account prepared is to be set at $1.10 for the billing and collection service period; the initial service period termination charge is to be set at $28,500; and the monthly recurring charge per customer account prepared after the initial service period is to be set at $2.81. The Commission denies Northern's proposed billing and collection service agreement and orders that all mention of the proposed agreement be removed from the tariff. Northern is to issue forthwith revised tariff pages reflecting the above. | |
| Secretary General | |
| 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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