ARCHIVED -  Telecom Order CRTC 99-1224

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Telecom Order CRTC 99-1224

  Ottawa, 23 December 1999
  On 29 October 1999, pursuant to Telecom Order CRTC 99-941, 30 September 1999 (Order 99-941), the Canadian Association of Publicly-Owned Telecommunications Systems (CAPTS) requested approval of its members' revised interim 1999 Carrier Access Tariffs (CATs).
  On 24 November 1999, CAPTS revised its 29 October 1999 filing for (1) increased toll minute forecasts and (2) a decrease to its estimated 1999 local rate increase impacts.
  File No.: Tariff Notice 7
  1. CAPTS' initial filing of 29 October 1999 was in accordance with Order 99-941, except it had increased the total amount of its members' estimated 1996 fund administration fee by approximately $34,000 in calculating its 1997 contribution rates, which was then flowed through to its final 1998 and revised interim 1999 contribution rates.
  2. In orders issued today, the Commission denied CAPTS' request to increase its estimated 1996 fund administration fee in its 1997 and 1998 contribution rates. Accordingly, the Commission has revised CAPTS' proposed revised interim 1999 contribution rates in order to reflect the resulting lower 1998 base contribution requirements.
  3. The Commission accepts the increase in toll minutes provided in CAPTS' filing of 24 November 1999.
  4. In its 24 November 1999 filing, CAPTS identified that it had adjusted the impacts of the 1999 rate increases to meet the Commission's directives in Review of contribution regime of independent telephone companies in Ontario and Quebec, Telecom Decision CRTC 99-5, 21 April 1999 (Decision 99-5), and Order 99-941 regarding contribution requirement amounts and increased expenses.
  5. In Order 99-941, the Commission directed CAPTS to calculate the revised interim 1999 CATs based on the revised final 1998 CATs, after accounting for the impact of the 1999 local rate increases. The Commission notes that the local rate increases approved by the Commission are estimated to generate the amounts provided in the 29 October 1999 filing. In accordance with Order 99-941, it is these local rate increases that should be used to calculate the revised interim 1999 CATs, not the lower revised estimates provided in the 24 November 1999 filing.
  6. While Decision 99-5 identified that the independents should increase their local rates to reduce their contribution rates to 2 cents per minute per end, it is not the Commission's view that contribution rates cannot drop below the 2 cents per minute per end level. For example, once a contribution rate reaches the 2 cents per minute per end level, any increase in toll minutes would result in the contribution rate dropping below the 2 cents per minute per end level.
  7. The Commission considers the estimated 1999 local rate increase amounts provided in the 29 October 1999 filing to be the correct amounts to be used for the purposes of calculating the revised interim 1999 contribution requirements.
  8. In light of the foregoing, the Commission orders that:
  (a) CAPTS members' interim 1999 contribution rates filed in Tariff Notices 7 and 7A are denied;
  (b) the contribution and direct toll rates listed in the attached table are approved on an interim basis, effective 1 January 1999; and
  (c) CAPTS is to issue, within 15 days, revised tariff pages reflecting the approved CAT rates for its members.
  Secretary General
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Direct toll rate

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