ARCHIVED -  Telecom Order CRTC 99-1217

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Telecom Order CRTC 99-1217

  Ottawa, 23 December 1999
  On 17 June 1998, Bell Canada (Bell) filed Tariff Notice (TN) 6240 proposing to revise General Tariff Item 675, to modify the Centrex tariffs with regard to the rates for Centrex digital tie-trunk terminations by incorporating a monthly charge of $216 per DS-1 with respect to the digital trunk card used to terminate each DS-1 facility on the switch plus a monthly charge of $19 per in-service DS-0.
  On 23 July 1998 the Commission issued Telecom Order CRTC 98-727 approving TN 6240 on an interim basis.
  File No.: Tariff Notice 6240
  1. On 16 July 1998 Distributel Communications Limited (Distributel) filed an intervention requesting that the Commission not approve the $19 rate per active DS-0 but initiate a proceeding to develop a cost based rate for this service element and, in the meantime establish an interim rate of $4 per DS-0.
  2. Distributel noted that in filing TN 6240 Bell had followed the Commission's invitation, in Telecom Order CRTC 98-558 (Order 98-558), to file an unbundled rate for digital tie-trunk terminations. However, Distributel submitted that this invitation did not relieve Bell of the obligation to supply cost support for any rates the company may file.
  3. Distributel further submitted that the proposed rate of $19 per circuit per month is not cost based and that the Commission would therefore be unable to determine if that rate is just and reasonable, as required by the Telecommunications Act.
  4. On 17 July 1998 London Telecom Network Inc. and Ontel Long Distance intervened submitting that the Commission should not approve TN 6240 unless, or until, Bell files an appropriate cost study to support the proposed monthly $19 per DS-0 termination rate.
  5. The Commission notes that Bell, in its proposal, followed the Commission's suggestion outlined in Order 98-558.
  6. The Commission notes that the existing rate of $28 per termination per month is an approved rate. Further, the Commission notes that under rate of return regulation the telephone companies were required to set rates to maximize contribution for optional services, such as Centrex. Under the current price cap regulation, Centrex is in the uncapped category of services and the telephone companies are required to file imputation tests for price decreases or the introduction of new services.
  7. The Commission considers that Bell's proposal is a reprice of the Centrex digital tie-trunk termination. It is therefore not a new service. Further the proposal does not represent a rate decrease. Accordingly, an imputation test is not required.
  8. The Commission considers that Bell's proposed rate change for Centrex digital tie-trunk terminations is appropriate.
  9. The Commission therefore approves TN 6240 on a final basis.
  Secretary General
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