ARCHIVED -  Telecom Order CRTC 99-955

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Telecom Order


Ottawa, 5 October 1999


Telecom Order CRTC 99-955


On 14 April 1999, Northwestel Inc. (Northwestel) filed an application under Tariff Notice (TN) 702, amended by TN 702A dated 21 April 1999, proposing revisions to that portion of its Special Services Tariff dealing with Occupancy Rates (& Conditions) for its Radio Sites. It outlined: (1) the procedures to gain access to Northwestel's radio sites by customers to install or maintain their equipment or for any other purpose; and (2) the rates and fees associated with the product/service offerings.


File No.: TN 702


1.Northwestel indicated in its application that it seeks to modify the rates and conditions of these services for the first time since 1987; that the proposed changes support Northwestel's approach of moving rates closer to costs; and that the new conditions reflect the variety of services/products evolving in the industry.


2.On 11 June 1999, the Government of Yukon (GY) filed a letter opposing primarily that portion of Northwestel's application dealing with the rate increases on the grounds that, among other things: (1) a rate increase would have a negative impact on the further extension of the telecommunications services to rural Yukon; (2) there is a lack of supporting documentation to justify the magnitude of the increase proposed; and (3) the magnitude of the rate increase is such that a more expanded process should be established.


3.On 18 June 1999, Northwestel responded indicating that: (1) the proposed filing should not act as an impediment to the development to rural Yukon but will bring rates closer to cost; (2) the overall impact of the proposed rate changes range from 7% to 40%, not the 40% indicated by GY; (3) certain elements of the rate restructuring are a consequence of government regulation such as safety rules; (4) it wished to stress the high cost of providing this service particularly in the North; and (5) the site evaluation service has been provided for years at no cost to customers whereas BC TEL and Maritime Tel & Tel Limited both charge for the service.


4.The Commission notes that no comments regarding Northwestel's modifications to the "procedures to gain access" were submitted. The Commission is satisfied that the modifications proposed appropriately address conditions regarding accessibility, liability and security. Accordingly, the Commission approves Northwestel's modifications to the "procedures to gain access".


5.The Commission notes and shares GY's concerns regarding the lack of costing information filed by Northwestel in support of the proposed new rate structure. Accordingly, the Commission denies the proposed rate increases.


Secretary General


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