ARCHIVED - Telecom - Commission Letter - 8638-C12-45/00

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Our file: 8638-C12-45/00

Ottawa, 2 March 2001


Mr. Russell Rath
Processing and Systems Working Group #3
AT&T Canada Corp.
Suite 600
205 Fifth Avenue South West
Calgary, Alberta
T2P 2V7

Dear Mr. Rath:

Re: Request for clarification

This letter is in response to your request for clarification at the joint meeting of the Co-ordination Committee and CISC Steering Committee meeting held on 20 February 2001 with respect to the principle, set out in paragraph 134 of Decision CRTC 2000-745, to adjust differences.

Paragraph 134 states that, "Once the Commission has approved the final 2001 revenue-percentage charge, the CFA will be required to reconcile the total amount collected to date from each company and the amount that should have been paid as if the final percent revenue charge had been in effect since 1 January 2001. The differences by company should then be prorated as an adjustment to the monthly payment to the CFA over the remaining months of the current year".

While disagreement does not exist as to the principle of prorating any differences in the amount collected and the amount that should have been paid resulting from a change in the 4.5% charge to the final percentage, parties have required clarification as to whether the prorating also applies to the over/under collection resulting from the change from the per-minute to the revenue-based mechanism. Prorating was adopted to help alleviate the immediate financial impact the change in the contribution collection mechanism may have on some telecommunication service providers. Commission staff is of the view that the principle of prorating payments is applicable to both the changes resulting from the establishment of the final change and from the over/under payments resulting from the change from the per-minute to the revenue-based mechanism effective 1 January 2001.

Do not hesitate to contact me if you require further information.

Yours sincerely,

Scott Hutton
Director, Efficiency and Expenditure Analysis
(819) 997-4573

c.c.: Co-ordination Committee members
        Mario Bertrand, CRTC (819) 997-4576

Date Modified: 2001-03-02

Date modified: