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ARCHIVED - Order CRTC 2000-554

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Order CRTC 2000-554
Ottawa, 19 June 2000
Ontario Telephone Association final 1999 Carrier Access Tariffs
Reference: OTA Tariff Notice 59
The Commission approves final 1999 Carrier Access Tariff (CAT) rates, for the period 1 January 1999 to 31 December 1999, and certain Phase III assignment methodologies.
The Commission directs Ontario Telephone Association to file proposed final 2000 CATs within 45 days.

1.

Pursuant to Telecom Order CRTC 99-941, dated 30 September 1999, OTA filed, on behalf of its members:
  • a proposal to eliminate the Phase III assignment of operating revenues from the Common Broad Service Category (BSC);
  • a proposal to include the OTA administration fee in its members Phase III results and assign it to Toll BSC; and
  • proposed final 1999 CATs, which ranged between $0.0681 and $0.1452 per minute.
Phase III assignment methodologies
Operating revenues in the Common BSC

2.

OTA identified that rent revenue was being assigned to the Common BSC and, according to the Uniform System of Accounts, this account includes revenues from the rental of telephone plant used by the company in its telephone operations.

3.

OTA proposed to adjust the current assignment ratio to eliminate the allocation to the Common BSC.

4.

The Commission finds OTA's proposed Phase III assignment methodology to be reasonable, and accordingly approves OTA's proposal to eliminate the Phase III assignment of operating revenues from the Common BSC.
OTA administration fee

5.

OTA proposed to include the OTA administration fee in its members Phase III results and assign it to the direct toll component of the CAT, specifically the Toll BSC.

6.

In support of its proposed Phase III assignment methodology, OTA identified some of the functions performed as part of the OTA Administration Fee and concluded that, based on these functions, the OTA Administration Fee should be assigned to the direct toll component of the CAT.

7.

The Commission is not convinced that all of the functions being performed would be causal to only the direct toll component and finds that most of the functions would be equally causal to both the direct toll component and the contribution component.

8.

In light of the above, the Commission:
a) approves a Phase III assignment methodology for the OTA Administration Fee of 50% to the Access BSC and 50% to the Toll BSC; and
b) directs OTA to issue amended Phase III Manual pages within 30 days.
Proposed final 1999 Carrier Access Tariffs
1999 Contribution eligible minutes

9.

OTA's 1999 contribution and direct toll proxy minutes increased on average 12.6% and 15.0%, respectively, over 1998.

10.

The Commission considers OTA's proposed 1999 contribution and direct toll proxy minutes to be reasonable.
1999 Contribution requirements and rates

11.

OTA calculated its members' contribution requirements as the lower of a) the previous year's contribution requirement, after accounting for local rate increases and excluding the 1998 ice storm-related expenses, and b) the current year's contribution requirement.

12.

The Commission considers OTA's proposed 1999 contribution requirements to be reasonable.

13.

However, based on the determinations made in paragraph 8, adjustments are required to the contribution requirements to account for the change in the OTA administration fee Phase III assignment. Appendix A provides the final 1999 contribution rates.
1999 Direct toll components and rates

14.

OTA proposed direct toll components based on the current year's forecast Toll BSC and provided explanations for the two members whose 1999 direct toll component exceeded the 1998 direct toll component by more than 5%.

15.

The Commission considers OTA's proposed 1999 direct toll components and the explanations provided by North Renfrew Telephone Company Limited and Roxborough Telephone Company Limited to be reasonable.

16.

However, based on the determinations made in paragraph 8, adjustments are required to the direct toll components to account for the change in the OTA administration fee Phase III assignment. Appendix A provides the final 1999 direct toll rates.
Implementation

17.

In light of the above, the Commission:
a) approves the final 1999 company-specific contribution and direct toll rates listed in Appendix A of this order, for the period 1 January 1999 to 31 December 1999;
b) directs OTA to issue amended CAT tariff pages within 15 days;
c) directs OTA to file proposed final 2000 CATs and responses to the Commission interrogatories to be issued under a separate cover letter, within 45 days from the date of this order; and
d) directs OTA to provide actual 1999 rates of return for the regulated portion of the company when it files actual 1999 Phase III results, by 31 October 2000, and in the event that a company has over-earned, the amount that will be refunded to the toll provider(s).
Secretary General
This document is available in alternative format upon request and may also be examined at the following Internet site: http://www.crtc.gc.ca

Appendix A

Ontario Telephone Association Member Companies 

Final 1999 contribution rate

Final 1999 direct toll rate
Amtelecom Inc.

$0.0558

$0.0424

Brooke Telecom Co-operative Limited

$0.0809

$0.0352

Gosfield North Communications Co-operative Limited

$0.0596

$0.0369

Hay Communications Co-operative Limited

$0.0553

$0.0379

Huron Telecommunications Co-operative Limited

$0.0476

$0.0444

Hurontario Telephones Limited

$0.0758

$0.0259

The Lansdowne Rural Telephone Company Limited

$0.0594

$0.0242

Mornington Communications Co-operative Limited

$0.0745

$0.0360

Nexicom Telecommunications Inc.

$0.0548

$0.0437

Nexicom Telephones Inc.

$0.0935

$0.0299

North Frontenac Telephone Corporation Limited

$0.0709

$0.0320

North Renfrew Telephone Company Limited

$0.0667

$0.0198

People's Telephone Company of Forest Inc.

$0.0632

$0.0175

Quadro Communications Co-operative Inc.

$0.1130

$0.0321

Roxborough Telephone Company Limited

$0.0525

$0.0181

South Bruce Rural Telephone Company Limited

$0.0699

$0.0280

Tuckersmith Communications Co-operative Limited

$0.0376

$0.0304

Westport Telephone Co. Limited

$0.0682

$0.0219

Wightman Telephone Limited

$0.0579

$0.0262


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