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ARCHIVED - Order CRTC 2001-629

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Order CRTC 2001-629

Ottawa, 9 August 2001

Bell Canada

Tariff notice 6583

Local link package service

The Commission denies Bell Canada's application to revise rates and introduce a three-year minimum contract for the local link package service.

1.

On 30 April 2001, Bell Canada filed Tariff notice 6583 proposing the following rate revisions to its local link package (General Tariff item 680):

· an increase in existing rates;

· the introduction of rates for a three-year minimum contract period (MCP) option for rate bands A, B and C;

· additional rate levels for customers who enter into a one-year or three-year MCP and also choose Bell Canada as their primary interexchange carrier (PIC); and

· a simplification to the termination charges for customers who choose to terminate their service before the expiration of their MCP.

2.

Bell Canada submitted that, overall, these changes resulted in a revenue increase and that the company was therefore not required to provide an imputation test.

3.

Interventions were received from GT Group Telecom Services Corp. and AT&T Canada Telecom Services Company. Their main submissions were that MCPs and the "negative option" automatic renewal feature are anti-competitive. AT&T Canada also noted that Bell Canada had failed to provide an imputation test for the proposed lower rates of the three-year MCP option and for customers who choose Bell Canada as their PIC.

4.

Bell Canada replied that the Commission had ruled on the MCP and automatic renewal features in Telecom Order CRTC 99-511, which granted final approval of the local link package. The company further noted that in accordance with Telecom Decision CRTC 97-8 Local competition, dated 1 May 1997, the company was not required to file an imputation test if the proposal resulted in an overall revenue increase.

5.

The Commission notes that it has dealt with the matter of MCP and automatic renewal feature of the local link package contracts in previous rulings.

6.

With respect to the matter of the imputation test, the Commission notes that, on 27 November 1998, in a follow-up letter to Decision 97-8, the Commission stated that rate revisions of local exchange services involving implicit or explicit price decreases within a particular rate band should include either an imputation test or an estimate of the overall weighted average percentage price change within that rate band. If the average price change within a particular rate band is negative, an imputation test is to be filed. The Commission notes that Bell Canada filed neither an estimate of the overall weighted average percentage price change by rate band nor any imputation test.

7.

Accordingly, the Commission denies Bell Canada's application.

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

Date Modified: 2001-08-09

Date modified: