ARCHIVED - Telecom Order CRTC 99-95
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Telecom Order |
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Ottawa, 2 February 1999 |
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Telecom Order CRTC 99-95 |
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On 2 October 1998, Island Telecom Inc. (Island Tel) filed Tariff Notice (TN) 500 proposing to revise the company's residence and business Service Charges in order to simplify the determination of the appropriate charge and at the same time to rationalize the service charges with the cost of providing the services. |
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File No.: TN 500 |
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1.On 26 October 1998, London Telecom Network Inc. (London Telecom) intervened stating, among other things, that the proposed changes did not simplify the determination of service charges and that the overall financial impact represents a marked increase in service charges for Centrex customers. |
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2.London Telecom provided an example in which it claimed that the proposed rates would represent a 227% increase over the existing service charges. The company further stated the application of the new Customer Premises Charge was confusing. |
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3.On 6 November 1998, Island Tel replied stating that London Telecom's example was not representative of the overall impact of the proposed changes and that these changes meet the Price Cap requirements. |
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4.With respect to London Telecom's specific example, Island Tel stated that the proposed service charges do not include a premises visit charge and therefore the total charge in London Telecom's example should be $555.00, not $1,035.00 as calculated by London Telecom. |
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5.With respect to London Telecom's submission that the proposal does not simplify service charges, Island Tel stated that reducing the number of standard service charges from eight to three, and consolidating the applicable business categories from four (Single Line Business, Multi-Line Business, Centrex and Data) to one (Business), inherently simplifies the application of the appropriate service charges. |
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6.The Commission notes that, after including Island Tel's correction, the example provided by London Telecom demonstrates an increase of 22% over the existing rates. |
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7.The Commission notes further that in proposing to reduce the number of standard service charges to three, the company has combined elements from the existing service charges and that comparisons with specific examples may thus not be representative of the overall impact of the proposal. |
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8.With respect to the Customer Premises Charge, the Commission notes that work covered by this charge is open to competitive providers and that Island Tel provides an hourly rate alternative to business customers. |
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9.The Commission considers that the proposed tariff pages adequately describe the proposed service charges. |
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10.The Commission considers that the proposed changes meet the Price Cap constraints. |
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11.Considering the above, the Commission approves the proposal effective 8 February 1999. |
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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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