ARCHIVED -  Telecom Order CRTC 99-491

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Telecom Order


Ottawa, 1 June 1999


Telecom Order CRTC 99-491


On 30 March 1999, Island Telecom Inc. (Island Tel) filed applications proposing tariff changes further to Price Cap Regulation and Related Issues, Telecom Decision CRTC 97-9, 1 May 1997 (Decision 97-9).


File Nos.: Tariff Notices 527 and 528


1.Island Tel filed its Price Cap Index (PCI) and Service Band Limits (SBLs) as atfor 1  May 1999 incorporating an exogenous adjustment related to the recovery of local competition start-up costs.


2.The Commission considers that this exogenous adjustment is in compliance with Local Competition Start-up Costs Proceeding, Telecom Public Notice CRTC 98-10, 12 May 1998 and Telecom Order CRTC 99-239, 12  March 1999.


3.Island Tel updated its PCI and respective SBLs to incorporate the Gross Domestic Product - Price Index and the productivity offset of 4.5% stipulated in Decision 97-9.


4.In Tariff Notice (TN) 527, Island Tel proposed changes to Tariff Item 280, Network Access Exchange Service - Single Line rates.


5.Island Tel proposed to increase the rate for four-party residence service from $17.05 to $18.80 per month.


6.In Decision 97-9, the Commission determined that no rate element in the Basic Residential Local Service sub-basket was to increase by more than 10% in bands where local loops are considered to be essential.


7.The Commission notes that the proposed rate for four-party residence service would result in an increase in excess of 10% for customers in bands B and C. The Commission finds that a rate of $18.75 applicable across all bands would be within the allowable limit.


8.Island Tel also proposed to reduce rates for single line business and to eliminate four-party business service.


9.In TN 528, Island Tel proposed reductions to the monthly rates in Tariff Item 720, Network Exchange Service -- Multiline.


10.The Commission is satisfied that, on the basis of the imputation test information required by Local Competition, Telecom Decision CRTC 97-8, 1 May 1997, the proposed rates for Business Single Line Network Access Service and Network Exchange Service -- Multiline are not anti-competitive.


11.Island Tel filed the calculation of its Actual Price Index (API) and Service Band Indices (SBIs) demonstrating that, under its proposed rates, it will not exceed the 1  May 1999 PCI and SBLs for 1999.


12.In light of the foregoing, the Commission approves the tariff revisions proposed in Tariff Notices TNs 527 and 528 effective 1 June 1999, with the exception of the rate for residence four-party Single Line Network Access Exchange Service which is to be set at $18.75 instead of $18.80 per month.


Secretary General


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