ARCHIVED - Order CRTC 2001-507
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Order CRTC 2001-507 |
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Ottawa, 29 June 2001 |
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CoopTel |
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Residential local service rate increase |
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| 1. |
On 15 March 2001, the Société d'administration des tarifs d'accès des télécommunicateurs filed, on behalf of CoopTel, an application for an interim residential local service rate increase of $1.70, effective 1 July 2001, to reduce its contribution requirement to no more than 25% of its total revenue requirement. |
| 2. |
The proposed rate change was filed pursuant to Review of contribution regime of independent telephone companies in Ontario and Quebec, Telecom Decision CRTC 99-5, dated 21 April 1999. |
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In the Commission's orders related to the plans filed by the Ontario independent telephone companies to reduce their contribution requirement to no more than 25% of their total revenue requirement, the Commission stated that average total local and access broad service category Phase III costs, compared to service specific revenues, was an appropriate means to measure whether or not business service rates are compensatory. The Commission found that revenues from other services should not be included to determine whether a specific service is compensatory or not. |
| 4. |
Based on the above-noted test, the Commission rejects CoopTel's submission that revenues from optional services generated by business service and revenues from Centrex lines / PBX trunks should be taken into account when determining whether CoopTel's business service rate is compensatory. However, because the amounts involved would have been minimal, in the circumstances of this case, the Commission does not consider it appropriate to increase CoopTel's business local rates at this time. |
| 5. |
CoopTel requested an interim residential local rate increase to allow it to account for revenue losses that may flow from Bell Canada's plan to take over its own billing and collection of long distance services in CoopTel's territory. The Commission finds that the amount of contribution received by CoopTel will not be affected if Bell Canada takes over the billing and collection of its long distance services. The Commission notes that CoopTel has a specific tariff rate to recover costs for providing billing and collection for toll services. This rate is separate from the calculation of its contribution requirement. The Commission therefore approves CoopTel's residential local rate increase on a final basis. |
| 6. |
Based on the evidence filed, the Commission approves CoopTel's residential local rate increase of $1.70 on a final basis in order to reduce its contribution requirement to no more than 25% of its revenue requirement. |
| 7. |
The revision takes effect on 1 July 2001. |
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Secretary General |
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| This document is available in alternative format upon request and may also be examined at the following Internet site: www.crtc.gc.ca |
Date Modified: 2001-06-29
- Date modified: