ARCHIVED - Order CRTC 2000-443
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Order CRTC 2000-443 |
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| Ottawa, 25 May 2000 | |
| Introducing extended area service model for extended local calling | |
| Reference: TELUS Communications Inc. Tariff Notices 169 and 169/A | |
| The Commission approves TELUS Communications Inc.'s proposal to restructure its existing extended flat rate calling service to an extended area service model similar to those offered by other incumbent telephone companies in Canada. The Commission directs TELUS Communications Inc. to implement these changes coincident with the changes arising from its 2000 price cap implementation filings, to avoid multiple rate changes to the affected customers. | |
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Under the existing extended flat rate calling (EFRC) rate structure, there are 36 different rates billed to residence customers in Alberta for local access service. The prices range from a low of $17.77 to a high of $32.00. TELUS Communications Inc. (TCI) stated that the intent of its application is to address the structural issues associated with the existing extended flat rate calling (EFRC) service, to improve the relative equity in the overall local telephone access rates paid by customers and to introduce consistency with extended area service (EAS) service structures in other areas of Canada. TCI proposed to make EFRC part of the basic individual line service rate, on a revenue neutral basis for each rate band. The result is that the number of different charges for residential local access could be reduced from 36 to 8. |
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Under TCI's EAS proposal for residence markets, approximately 19% of customers will see their rates increase and 12% will see their rates decline. The remainder will see no change in the overall rate they pay. The largest rate increase applied to any residence customer is $0.95 per month. The largest residential rate decrease is $4.10 per month. |
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TCI proposed a similar rate restructuring for individual business line service and other business services with similar rate change impacts. |
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TCI advised the subscribers whose rates would increase about its EAS proposal. Approximately 240 subscribers (or less than a 1% return rate of those that were informed) submitted comments, including a number who submitted petitions. |
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Among the concerns raised by parties were: |
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a) affordability of local service; |
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b) opposition to rate increases as there is no equivalent improvement to the service received; and |
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c) inadequacies and inequities in the extended local calling areas that serve a customer's community. |
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The Commission notes that the largest proposed increase for residential customers is $0.95 per month, which is within the 10% annual limit established in the price cap regime. |
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The Commission considers that TCI has responded fully to the concerns raised by customers with respect to the proposed tariff revisions. The Commission notes that the benefits of the restructuring include a reduction in the number of rates and the associated customer confusion. The Commission also notes that customers used this opportunity to comment on other issues that are not part of TCI's proposal. The Commission considers that issues concerning alleged inequitable local calling area structures and the individual line service surcharge that rural customers pay for new or additional lines are more appropriately considered in other proceedings. |
| 8. | TCI filed Tariff Notice (TN) 169 dated 26 November 1999, as amended by TN 169A dated 17 March 2000, to revise Item 240 and associated items of its General Tariff. |
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Secretary General |
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| This document is available in alternate format upon request and may also be examined at the following Internet site: http://www.crtc.gc.ca |
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