ARCHIVED -  Telecom Order CRTC 99-509

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Telecom Order


Ottawa, 7 June 1999


Telecom Order CRTC 99-509


On 7 October 1998, The South Bruce Rural Telephone Company Limited filed an application for approval of tariff revisions to introduce Basic Access Service Improvements and to restructure its local rates. On 29 January 1999, the company amended its application under Tariff Notice 14A.


File No.: Tariff Notice 14


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 grandfathering of party service and the elimination of the rural rate differential. The company's proposed expanded local calling area would introduce new Extended Area Service (EAS) links similar to Bell Canada's (Bell) Natural Calling Centres (NCCs).


3.In its comments, Bell noted that the proposed Mildmay to Clifford EAS link and the proposed Teeswater to Gorrie EAS link did not meet the NCC criteria.


4.In response to Bell's comments, the company did not dispute Bell's claim but maintained its original request for the approval of all the proposed links. The company indicated in its application that the Teeswater to Gorrie EAS link would correct an anomaly with respect to long distance calling in the community of Bellmore which lies on the boundary of the two exchanges.


5.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.


6.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.


7.The Commission notes that the proposed Basic Access Service Improvements with the exception of the proposed EAS link between Mildmay and Clifford are consistent with Decision 99-5.


8.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.


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


(1) Tariff Notices 14 and 14A are approved as modified by paragraphs (2), (3), (4) and (5) 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 link between Mildmay and Clifford is denied.


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


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


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


Secretary General


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