ARCHIVED -  Telecom Public Notice CRTC 99-9

Telecom Public Notice

Ottawa, 15 March 1999

Telecom Public Notice CRTC 99-9

PRICING POLICY FOR SERVICES SUBJECT TO PRICE CAPS

File No.: 8678-C12-05/99

I INTRODUCTION

1.In NBTel Inc. - Application to Review and Vary Telecom Order 98-468 and Telecom Decisions CRTC 97-9 and 98-2, Telecom Decision CRTC 99-3, 5 March 1999 (Decision 99-3), the Commission expressed the preliminary view that in satisfying the price cap requirements for capped services, NBTel Inc. (NBTel) should not be required to reduce rates to the imputation test price floor, and that it is appropriate to not require reductions below Phase II costs plus 25%. The Commission noted that wherever essential services are employed, the imputation test price floor includes the Phase II costs plus a 25% mark-up for these services. Thus, the threshold for mandated rate reductions would be the same as the imputation test price floor for essential service components and would differ for other service components by the 25% mark-up.

2.Accordingly, in Decision 99-3, the Commission determined, on an interim basis, that it will not require NBTel to file rate reductions below Phase II costs plus a mark-up of 25% in order to meet price cap requirements. The Commission also stated that NBTel will still have the option of reducing rates to the imputation test price floor. Furthermore, the Commission announced its intention to consider whether this pricing policy should be extended to the other incumbent local exchange carriers subject to price caps.

3.The Commission hereby initiates a proceeding to consider the appropriateness of implementing such a regime for the above noted carriers.

II PROCEDURE

4.Persons wishing to participate in this proceeding must notify the Commission of their intention to do so by writing to, Secretary General, CRTC, Ottawa, Ontario, K1A 0N2, fax: 819-953-0795, by 29 March 1999. Parties are to indicate in the notice their Internet email address, where available. If parties do not have access to Internet, they are to indicate in their notice whether they wish to receive disk versions of hard copy filings. The Commission will issue a complete list of parties and their mailing addresses (including Internet email addresses, if available), also identifying those parties who wish to receive disk versions.

5.Parties may file comments on whether the Commission should not require mandated rate reductions below Phase II costs plus a mark-up of 25% for the telephone companies subject to price cap regulation. Comments are to be filed by 6 April 1999, with a copy served on all interested parties by the same date.

6.All parties may file reply comments, serving copies on all parties, by 15 April 1999.

7.Where a document is to be filed or served by a specific date, the document must be actually received, not merely sent, by that date.

8.In addition to hard copy filings, parties are encouraged to file with the Commission electronic versions of their submissions in accordance with the Commission's Interim Telecom Guidelines for the Handling of Machine-Readable Files, dated 30 November 1995. The Commission's Internet email address for electronically filed documents is public.telecom@crtc.gc.ca. Electronically filed documents can be accessed at the Commission's Internet site at http://www.crtc.gc.ca.

Secretary General

This document is available in alternative format upon request.