ARCHIVED -  Telecom Order CRTC 99-16

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Telecom Order


Ottawa, 12 January 1999


Telecom Order CRTC 99-16


On 16 December 1998, Maritime Tel & Tel Limited (MT&T) filed Tariff Notice (TN) 736, proposing to introduce a time limited promotion to allow existing business customers to switch from single line or multi-line service to the Small Business Network Service without incurring service charges. The promotion is proposed to run from 12 January 1999 to 8 February 1999.


File No.: TN 736


1.On 29 December 1998, Networks Communications intervened submitting that, based on MT&T's statements in other filings, service charges are below cost and that, therefore, foregoing the service charges would definitely constitute anti-competitive pricing. Networks Communications further submitted that if the promotion were approved, a fundamental competitive safeguard to protect against anti-competitive practices would be removed for the period of the promotion.


2.Networks Communications also submitted that MT&T will charge resellers, but not MT&T's customers, to migrate from single line or multi-line service to Centrex service.


3.On 29 December 1998, MT&T replied that the promotion was aimed only at a small subset of customers altering their service in a specific way and, moreover, that consistent with the Commission's determinations in Telecom Decisions CRTC 94-13 and 97-8, it is not necessary to show that a promotion is compensatory.


4.A further letter was received from Networks Communications dated 31 December 1998, submitting that the Commission should deny TN 736 because MT&T is not in a position to handle the increased workloads that will result from this promotion. Networks Communications submitted that MT&T is currently not processing a portion of its service orders within the required 48-hour time frame.


5.MT&T replied that, in its view, Networks Communications' comments in respect of TN 736 have been sufficiently addressed in previous correspondence.


6.With respect to Networks Communications' submission concerning the migration of customers, the Commission notes that if single or multi-line service customers migrate to a MT&T's Small Business Network Service that is re-sold by a reseller, the proposed promotion would also apply.


7.The Commission is not persuaded that the service problems referred to by Networks Communications should delay the introduction of this promotion. However, the Commission notes that it is open to Networks Communications to request the Commission to specifically examine these service problems. If Networks Communications chooses to file such a request, the Commission would be prepared to consider these service problems at that time.


8.The Commission considers the TN 736 promotion to be a legitimate promotion of limited duration that is therefore exempt from the application of the imputation test.


9.The Commission therefore approves TN 736.


Secretary General


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