ARCHIVED - Order CRTC 2001-434

Order CRTC 2001-434

Ottawa, 31 May 2001

MTT - Provincial 9-1-1 service

Reference: Tariff Notice 789

The Commission approves, with changes, MTT's application to introduce a separate rate for provincial 9-1-1 service and a billing and collection arrangement whereby MTT will act as a billing agent on behalf of the province of Nova Scotia.

Maritime Tel & Tel (MTT) filed Tariff Notice 789 proposing amendments to its General Tariff and to the Atlantic Provinces Telecommunications Council Regional Services tariff to introduce a separate rate for Provincial 9-1-1 service, and a billing and collection arrangement whereby MTT, acting as a billing agent on behalf of the province of Nova Scotia, would bill and collect the provincial E9-1-1 cost recovery fee. MTT also filed a proposed Billing and Collection Agreement with the province of Nova Scotia.

Comments were received from the Canadian Wireless Telecommunications Association (CWTA), Digital Achievers Ltd., EastLink Telephone, Microcell Telecom, the Nova Scotia NDP Caucus and 13 MTT subscribers.

The Commission notes that MTT has never charged a separate rate for 9-1-1 service. In its application, MTT requested approval for a monthly 9-1-1 charge to recover ongoing costs associated with establishing a new 9-1-1 platform.

Several interveners indicated that MTT should not be permitted to recover 9-1-1 related costs through an additional charge, while others requested that the Commission ensure that the proposed rates are reasonable. The CWTA submitted that, if 9-1-1 rates are unbundled from local rates, there should be a corresponding reduction in local rates.

The Commission considers that it is appropriate for MTT to establish cost based rates for 9-1-1 service. In order to be consistent with the Commission's treatment of 9-1-1 services offered by other incumbent local exchange carriers (ILECs), the Commission has adjusted MTT's proposed 9-1-1 rate to reflect a 10-year study period and 10% mark-up. The Commission approves, effective 3 July 2001, a 9-1-1 rate of $0.l9 per primary exchange service equipped for outward local calling and per Centrex working telephone number equipped for outward local calling. As wireless service providers (WSPs) receive a 50% discount pursuant to the rate structure established in 9-1-1 Service - Rates for Wireless Service Providers, Centrex Customers and Multi-Line Customers/Manual Access to the Automatic Location Identification Database, Telecom Decision CRTC 99-17, dated 20 October 1999, the Commission approves, effective 3 July 2001, a 9-1-1 rate of $0.095 per working wireless telephone number equipped for outward calling to the public switched telephone network. For billing purposes, the Commission directs WSPs to provide wireless working telephone number counts to MTT on a monthly basis.

The Commission considers that, with approval of the separate 9-1-1 rate, it is appropriate to require a corresponding reduction to local residential, business and Centrex rates, as 9-1-1 service is provided to customers of these services at the current rates. Accordingly, the Commission directs MTT to reduce its local exchange residential, business and Centrex rates by $0.19, effective 3 July 2001.

As MTT's 9-1-1 rate is based on Phase II costing methodology and its rate structure conforms to that established in Decision 99-17, the Commission considers that it would be inappropriate to require MTT to recalculate the 9-1-1 rate on an annual basis, as suggested by the CWTA.

The Commission notes that the CWTA requested that MTT provide wireless carriers with documentation for wireless interconnection to the company's 9-1-1 platform. In reply, MTT indicated that it is currently working on technical documentation for trunk-side interconnection arrangements for 9-1-1 service. The Commission directs MTT to file, by 4 September 2001, for the Commission's information, documentation related to wireless interconnection and to provide the documentation to other carriers upon request.

MTT proposed to charge the province a monthly fee of $0.07 per exchange service to collect the provincial E9-1-1 cost recovery fee of $0.43 from subscribers on behalf of the province.

Several interveners were opposed to MTT billing and collecting a fee on behalf of the provincial government. Some parties indicated that MTT should not be permitted to charge for billing and collecting. In reply, MTT submitted that the proposed billing and collection arrangement is similar to arrangements previously approved by the Commission for other telephone companies. MTT further submitted that it would incur billing and administrative expenses that it is entitled to recover, and that the rate is supported by costing information.

The Commission is of the view that the proposed billing and collection charge is appropriate. The Commission notes that the billing and collection service is an optional service and that the proposed billing and collection charge of $0.07 is consistent with charges approved for other ILECs.

The provincial E9-1-1 cost recovery fee of $0.43, which MTT is to bill and collect from subscribers, is not subject to Commission approval. In view of this, the Commission directs MTT to replace section 15.5.1 of the billing and collection agreement with: "The E9-1-1 cost recovery fee is set out in the Nova Scotia Emergency 9-1-1 Cost Recovery Fee Regulations."

At least once per year, and whenever recurring charges are itemized, MTT must identify the amount of the provincial E9-1-1 cost recovery fee billed as a separate charge and indicate that that fee is a provincial government fee.

MTT's proposed tariff, at Item 280 6(d), states that MTT's obligation to implement the billing and collection service is subject to the execution of billing and collection agreements between the province and all other carriers operating in Nova Scotia, in the same form as the agreement between the province and MTT. The CWTA submitted that this item could be interpreted as obliging non-ILEC carriers to sign the billing and collection agreement filed by MTT. The Commission considers it reasonable for MTT to include a condition that it will provide the billing and collection service only where other carriers sign a billing and collection agreement. However, the Commission also notes that the requirement for other carriers to sign an agreement in the same form as the MTT agreement could unduly interfere with negotiations between non-ILEC carriers and the province. Accordingly, the Commission directs MTT to remove the words "in the same form as the agreement between the province and the company" from Item 280 6(d). The Commission notes that the billing and collection agreement does not bind other carriers to the terms and conditions contained in that agreement.

In light of the above, the Commission approves TN 789 and the billing and collection agreement between MTT and the province of Nova Scotia, subject to the modifications set out in this order.

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