ARCHIVED - Telecom Decision CRTC 2002-55

Telecom Decision CRTC 2002-55

Ottawa, 11 September 2002

Co-location arrangements for interconnecting Canadian carriers

Reference:8740-B2-6653/02

In this decision, the Commission approves the application by Call-Net Enterprises Inc., AT&T Canada Inc., GT Group Telecom Services Corp., and Futureway Communications Inc. (the Coalition) seeking interim approval of the single-tier co-location power rates proposed by Bell Canada in its application of 15 February 2002 for both existing and new co-location power arrangements. The Commission defers the Coalition's request to implement the revised single-tier power rate structure retroactive to 29 November 2000, until it has rendered a decision on Bell Canada's application.

The Commission directs Bell Canada to submit a report that identifies the billed monthly power demand for each co-locator, by rate element, for the period beginning 29 November 2000 to the date of this decision. The Commission further directs Bell Canada to track from the date of this decision until the date of the Commission's decision on Bell Canada's application, the billed power demand by rate element for each co-locator involved in existing, new or incremental power arrangements.

1.

In Order CRTC 2000-1073, dated 29 November 2000, the Commission approved Bell Canada's proposal to make interim its co-location power rates and charges. This determination was in response to a Part VII application for general relief filed on 17 July 2000 by the Coalition for Better Co-Location.

2.

On 15 February 2002, Bell Canada submitted an application to revise its single-tier co-location power rate structure (single-tier rate structure) for existing power arrangements and to introduce an additional rate structure (two-tier rate structure) for new and incremental co-location power arrangements. Under the proposed two-tier rate structure, Bell Canada would recover service development costs through a direct charge, instead of amortizing these over the monthly rate.

3.

In its application, Bell Canada proposed to give existing customers the option of remaining with the single-tier rate structure or transferring to the proposed two-tier rate structure. Bell Canada further proposed that the single-tier rate structure apply to all new or incremental power requests received prior to the date of the Commission's determination on its application. A proceeding is currently underway with respect to this application.

The Coalition's application

4.

On 9 April 2002, the Commission received an application by Call-Net Enterprises Inc., AT&T Canada Inc., GT Group Telecom Services Corp., and Futureway Communications Inc. (the Coalition), seeking interim approval of Bell Canada's proposed single-tier rate structure for both existing and new co-location power arrangements. The Coalition further requested that the proposed single-tier rate structure be adopted without further regulatory process and applied retroactively to 29 November 2000.

5.

In its 11 April 2002 comments filed in response to the Coalition's application, Bell Canada stated that it had submitted the proposed rate structures as an integrated package. It argued that it would not be appropriate, therefore, to implement some of the rate elements on an interim basis. Bell Canada further argued that allowing the retroactive adjustment requested by the Coalition would add a new level of complexity to the future administration of billing for co-location power arrangements.

Commission analysis and conclusions

6.

The Commission finds that the tariffs proposed by Bell Canada for single-tier co-location power arrangements correspond to the existing tariffs for co-location power arrangements, except for the revised rates resulting from estimates of lower service costs. The Commission therefore considers it appropriate to implement the proposed single-tier rate structure on an interim basis, until it disposes of Bell Canada's proposal to introduce a new two-tier rate structure.

7.

The Commission notes that power rates for co-location arrangements were classified as Category 1 Competitor Services in Regulatory framework for second price cap period, Telecom Decision CRTC 2002-34, 30 May 2002 (Decision 2002-34). In Decision 2002-34, the Commission determined that rates for such services would generally be set based on Phase II costs, plus a 15% mark-up.

8.

In light of the above, the Commission approves the Coalition's request for interim approval of Bell Canada's proposed single-tier rate structure, effective as of the date of this decision. Bell Canada's co-location power rates shall be equal to the proposed Phase II cost per fuse amp plus a 15% mark-up. The following per fuse amp rates will therefore be in effect as of the date of this decision:

· $11.47 for -48 Volt DC power;

· $5.45 for 120 Volt AC power;

· $9.04 for 120 Volt AC (with generator backup) power.

9.

The Commission directs Bell Canada to provide a report that identifies the billed monthly power demand for each co-locator, by rate element, for the period 29 November 2000 to the date of this decision. The Commission further directs Bell Canada to track from the date of this decision until the date of the Commission's decision on Bell Canada's application, the billed power demand by rate element for each co-locator involved in existing, new or incremental power arrangements.

10.

The Commission considers it inappropriate to deal with the issue of retroactive adjustments to 29 November 2000 until all issues and cost estimates related to Bell Canada's 15 February 2002 proposal to introduce a new two-tier rate structure have been reviewed. Accordingly, the Commission defers the Coalition's request to implement the revised single-tier rate structure retroactive to 29 November 2000, until it has rendered a decision on 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