ARCHIVED -  Telecom Order CRTC 99-510

Telecom Order

Ottawa, 7 June 1999

Telecom Order CRTC 99-510

On 7 October 1998, Wightman Telephone Limited filed an application for approval of tariff revisions to introduce Basic Access Service Improvements and to restructure its local rates. On 1 February 1999, the company amended its application under Tariff Notice 12A.

File No.: Tariff Notice 12

1.The company proposed to increase local residential and business rates.

2.The Basic Access Service Improvements proposed by the company consist of an expanded local calling area, the grandfathering of party service and the elimination of mileage charges. The company's proposed expanded local calling area would introduce new Extended Area Service (EAS) links similar to Bell Canada's (Bell) Natural Calling Centres (NCCs).

3.In its comments, Bell disagreed with the company's selection of Kitchener-Waterloo as the NCC hub for the company's Clifford and Gorrie exchanges. Bell argued that Goderich was the appropriate NCC hub. As a result, Bell did not support a number of proposed EAS links for those two exchanges. Bell also noted that the proposed Clifford to Mildmay EAS link and the proposed Gorrie to Teeswater EAS link did not meet the NCC criteria.

4.In response to Bell's comments, the company maintained that Kitchener-Waterloo and not Goderich was the appropriate hub for the Clifford and Gorrie exchanges. The company supported its proposed hub by indicating that its analysis of calling patterns showed that calls to Kitchener-Waterloo exceed calls to Goderich by a twenty to one ratio. The company also indicated in its application that the Gorrie to Teeswater EAS link would correct an anomaly with respect to long distance calling in the community of Bellmore, which lies on the boundary of the two exchanges.

5.In Review of Contribution Regime of Independent Telephone Companies in Ontario and Quebec, Telecom Decision CRTC 99-5, 21 April 1999 (Decision 99-5), the Commission ordered independent telephone companies in Ontario and Quebec to increase their local rates to Bell rate levels, effective 1 July 1999. In Decision 99-5, the Commission also considered that independent telephone companies should be allowed to immediately file tariffs to eliminate mileage charges and, in certain circumstances, expand local calling areas based on NCCs.

6.The Commission notes that the proposed rate increases are not consistent with its determinations in Decision 99-5. The Commission is of the view that the company should implement the local rate increases ordered in Decision 99-5.

7.The Commission is of the view that the proposed Basic Access Service Improvements, with the exception of the proposed EAS link between Clifford and Mildmay, are consistent with Decision 99-5.

8.The Commission considers that a number of independent telephone companies will likely be proposing the introduction of new EAS links with Bell, consistent with Decision 99-5. The Commission considers that the concurrent introduction of a number of EAS links would likely strain both the independent telephone companies' and Bell's resources. Given this, the Commission considers that the company should have some flexibility with respect to the scheduling of the effective dates of the approved EAS links.

9.In light of the foregoing, the Commission orders that:

(1) Tariff Notices 12 and 12A are approved, as modified by paragraphs (2), (3), (4) and (5) below.

(2) The company is to implement local rate increases consistent with the Commission's Decision 99-5 determinations, effective 1 July 1999.

(3) The proposed EAS links between Clifford and Mildmay is denied.

(4) The company is to implement the approved EAS links by 30 September 1999.

(5) The company is to implement the remaining aspects of its application, effective 1 July 1999.

(6) The company is to issue revised tariff pages to reflect the above revisions.

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