ARCHIVED -  Telecom Order CRTC 99-96

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Telecom Order


Ottawa, 2 February 1999


Telecom Order CRTC 99-96


On 4 September 1998, Maritime Tel & Tel Limited (MT&T) filed Tariff Notice (TN) 712 proposing to revise the company's residence and business Service Charges in order to simplify the determination of the appropriate charge and at the same time to rationalize the service charges with the cost of providing the services. On 7 December 1998, MT&T filed TN 712A to revise the proposed effective date from 6 January 1999 to 8 February 1999.


File No.: TN 712


1.On 25 September 1998, London Telecom Network Inc. (London Telecom) intervened stating, among other things, that the proposed changes did not simplify the determination of service charges and that the overall financial impact was not neutral.


2.London Telecom provided an example in which the proposed rates would represent a 45% increase over the existing service charges. The company further stated that the application of the new Customer Premises Charge was confusing.


3.On 7 October 1998, MT&T replied stating that London Telecom's example was not representative of the overall impact of the proposed changes and that these changes meet the Price Cap requirements.


4.With respect to London Telecom's submission that the proposal does not simplify service charges, MT&T stated that reducing the number of standard service charges from seven to three, and consolidating the applicable business categories from four (Single Line Business, Multi-Line Business, Centrex and Data) to one (Business), inherently simplifies the application of the appropriate service charges.


5.On 22 October 1998, an intervention was filed by Networks Communications (NC) which supported London Telecom's intervention and provided some additional examples comparing existing with proposed service charges to support its statement that the proposed changes represent large revenue increases for MT&T.


6.The Commission notes that in proposing to reduce the number of standard service charges to three, the company has combined elements from the existing service charges and that comparisons with specific examples may thus not be representative of the overall impact of the proposal.


7.The Commission notes that on an overall basis the revenue impact is essentially neutral.


8.With respect to the Customer Premises Charge, the Commission notes that work covered by this charge is open to competitive providers and that MT&T provides an hourly rate alternative to business customers.


9.The Commission considers that the proposed tariff pages adequately describe the proposed service charges.


10.The Commission considers that the proposed changes meet the Price Cap constraints.


11.Considering the above, the Commission approves the proposal effective 8 February 1999.


Secretary General


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