ARCHIVED -  Telecom Order CRTC 99-477

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Telecom Order


Ottawa, 31 May 1999


Telecom Order CRTC 99-477


On 11 September 1998, Hay Communications Co-operative Limited filed an application for approval of tariff revisions to introduce Basic Access Service Improvements and to restructure its local rates. On 18 February 1999, the company amended its application under Tariff Notice 12A.


File No.: Tariff Notice 12


1.The company proposed to increase local residential and business rates.


2.The Basic Access Service Improvements proposed by the company consist of an expanded local calling area, the elimination of mileage charges and the elimination of two-party business service. The company's proposed expanded local calling area would introduce new Extended Area Service (EAS) links consistent with Bell Canada's (Bell) Natural Calling Centres (NCCs).


3.The company also proposed to introduce three rate groups based on access to a schedule of weighted average telephone numbers.


4.In its comments, Bell noted that some of the proposed EAS links did not meet the NCC criteria.


5.As a result of Bell's comments, the company revised its application and withdrew most of the disputed links to better conform to the NCC criteria. The company, however, maintained its request to establish new EAS links between its own exchanges and the Kirkton and Granton exchanges served by Quadro Communications Co-operative Inc.


6.In Review of Contribution Regime of Independent Telephone Companies in Ontario and Quebec, Telecom Decision CRTC 99-5, 21 April 1999 (Decision 99-5), the Commission ordered independent telephone companies in Ontario and Quebec to increase their local rates to Bell rate levels, effective 1 July 1999. In Decision 99-5, the Commission also considered that independent telephone companies should be allowed to immediately file tariffs to eliminate mileage charges and, in certain circumstances, expand local calling areas based on NCCs.


7.The Commission notes that the proposed rate increases are not consistent with its determinations in Decision 99-5. The Commission is of the view that the company should implement the local rate increases ordered in Decision 99-5.


8.The Commission notes that the proposed Basic Access Service Improvements, with the exception of the proposed EAS links to Kirkton and Granton, are consistent with Decision 99-5.


9.The Commission notes that the introduction of the proposed rate groups is not consistent with the Commission's Decision 99-5 determinations.


10.The Commission considers that a number of independent telephone companies will likely be proposing the introduction of new EAS links with Bell, consistent with Decision 99-5. The Commission considers that the concurrent introduction of a number of EAS links would likely strain both the independent telephone companies' and Bell's resources. Given this, the Commission considers that the company should have some flexibility with respect to the scheduling of the effective dates of the approved EAS links.


11.In light of the foregoing, the Commission orders that:


(1) Tariff Notices 12 and 12A are approved, as modified by paragraphs (2), (3), (4), (5) and (6) below.


(2) The company is to implement local rate increases consistent with the Commission's Decision 99-5 determinations, effective 1 July 1999.


(3) The proposed EAS links to Kirkton and Granton are denied.


(4) The company is to implement the approved EAS links by 30 September 1999.


(5) The proposed introduction of rate groups is denied.


(6) The company is to implement the remaining aspects of its application, effective 1 July 1999.


(7) The company is to issue revised tariff pages to reflect the above revisions.


Secretary General


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