ARCHIVED - Telecom Order CRTC 99-87
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Telecom Order |
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Ottawa, 29 January 1999 |
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Telecom Order CRTC 99-87 |
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In the matter of Internet Service forbearance granted to Sogetel inc. (Sogetel) in Telecom Order CRTC 98-619, 23 June 1998 (Order 98-619). |
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File No.: 8640-S4-01/97 |
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1.In Order 98-619, the Commission forbore from regulation of Sogetel's Internet Service (IS) conditional on the establishment of an approved accounting separation for IS revenues, investment and expenses from its rate base and Phase III shortfall determinations. |
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2.On 14 July 1998, Sogetel filed information with the Commission to demonstrate that the company had established the required accounting separation for IS. |
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3.On 3 November 1998, the Commission issued several interrogatories to Sogetel to clarify the accounting separations that were to be used to assign costs related for forborne IS. |
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4.On 18 November 1998, Sogetel provided its responses. |
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5.No comments were submitted by any interested party on Sogetel's submission on its accounting separations for IS. |
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6.The Commission notes that Sogetel confirmed that it will allocate all revenues, investment and expenses associated with IS to the Competitive Terminal (CT) Broad Service Category (BSC) and will provide, in an appendix to its Phase III study, a report that shows the IS and CT components of the CT BSC separately. |
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7.The Commission also notes that Sogetel indicated that most of the IS associated costs are directly attributable to its IS accounts but acknowledged that certain expenses cannot be directly attributed to an IS account. |
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8.Sogetel indicated that these expenses include the salaries of the company's customer service group, stationery and postage, salaries related to collection activities and salaries related to supervision and administration. |
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9.The Commission notes that in each instance, Sogetel proposed to use salaries to assign the expenses associated with IS activities. For example, salaries related to IS collection activities are assigned on the basis of a study of the distribution of total company revenues, while salaries related to IS supervision and administration are assigned on the basis of a study of time spent by each employee on IS activities. |
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10.On the basis of the foregoing, the Commission considers that Sogetel's proposed accounting separation for IS satisfies the condition for IS forbearance set out in Order 98-619. |
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11.Accordingly, the Commission directs Sogetel to issue forthwith, tariff pages that withdraw their tariffs for IS in accordance with Order 98-619. |
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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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