ARCHIVED - Order CRTC 2001-252

Order CRTC 2001-252

Ottawa, 21 March 2001

Téléphone Guèvremont Inc.'s interim 1999 Carrier Access Tariff

Reference: Tariff Notice 24

The Commission approves, on an interim basis, revised 1999 CAT rates for Guèvremont, which reflect the impact of the 1999 local rate increases approved effective 1 July 1999.

In Review of contribution regime of independent telephone companies in Ontario and Quebec, Telecom Decision CRTC 99-5, dated 21 April 1999, the Commission directed the Ontario and small Quebec independents to file revised 1999 interim Carrier Access Tariffs (CATs) in order to reflect the increases in local residential and business rates effective 1 July 1999 as mandated in that decision.

In Order CRTC 2000-785, dated 16 August 2000, the Commission directed Guèvremont to file, among other things, a proposed interim 1999 CAT based on the final 1998 CAT approved in that order.

On 13 December 2000, Guèvremont filed its proposed revised interim 1999 CAT of $0.0434 per minute per end.

1999 Contribution-eligible minutes

Guèvremont proposed to use the actual 1999 contribution-eligible minutes for purposes of calculating the interim 1999 CAT.

The Commission approves Guèvremont's proposed contribution-eligible minutes of 22,429,603.

1999 Contribution requirement and rate

Guèvremont calculated the revised interim 1999 contribution rate to include the impact of the final decision of the 1998 CAT and the impact of the local rate increases effective 1 July 1999. The resulting rate was $0.0183; however, Guèvremont proposed that the interim 1999 contribution rate be set at $0.02 per minute. In support of its proposal, Guèvremont made reference to Decision 99-5 and interpreted the Commission's directives to mean that contribution rates could not go below $0.02 per minute per end.

Guèvremont submitted that its 1998 interim contribution rate was not known at the time of calculating the proposed local rate increases since it had not yet implemented Phase III procedures.

The company further submitted that, had the final 1998 contribution requirement been known at the time of establishing the proposed local rate increases, it would have used the flexibility allowed by the Commission to propose local rates lower than the current level ($19.85 for residence and $39.95 for business).

Bell Canada submitted that the appropriate interim 1999 contribution rate should be $0.0183 per minute, and not $0.02 per minute as proposed by Guèvremont.

Bell Canada noted that it was not just Guèvremont which did not know its final 1998 contribution requirement at the time of the 1 July 1999 local rate increases. None of the 1998 contribution requirements of the independent telephone companies were finalized until late 1999.

Bell Canada further noted that Guèvremont chose not to implement the Bell Canada equivalent business rate of $45.45, but instead implemented a reduced rate of $39.95.

In Telecom Order CRTC 99-1224, dated 23 December 1999, which approved the Canadian Association of Publicly-Owned Telecommunications Systems' members revised interim 1999 CATs, the Commission noted that while Decision 99-5 stated that the independent telephone companies should increase their local rates to reduce contribution rates to $0.02, the Commission clarified that it was not its view that contribution rates could not drop below the level of $0.02 per minute per end.

In light of the above, the Commission denies Guèvremont's proposal of a $0.02 floor for the contribution rate and approves an interim contribution requirement of $409,595 with an interim rate of $0.0183 per minute per end.

1999 Direct toll component and rate

Guèvremont proposed to use the 1998 direct toll component approved by the Commission.

The Commission approves the 1999 interim direct toll component of $503,880 and an interim rate of $0.0234 per minute per end.

1999 per quarter mile network component and rate

Guèvremont proposed to use the 1998 per quarter mile network component approved by the Commission.

The Commission approves the 1999 interim direct toll component of $86,919 and an interim rate of $5.9355 per quarter mile.

Implementation

In light of the above, the Commission:

a) denies Guèvremont's application under Tariff Notice 24;

b) approves the 1999 contribution-eligible minutes, interim contribution rate and direct toll rate, and the per quarter mile network component rate, as noted in paragraphs 5, 13, 15 and 17 respectively;

c) directs Guèvremont to issue revised CAT tariff pages within 15 days; and

d) directs Guèvremont to make billing adjustments as quickly as possible.

Secretary General

This document is available in alternative format upon request and may also be examined at the following Internet site: www.crtc.gc.ca