ARCHIVED - Telecom decision CRTC 2002-7

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Telecom Decision CRTC 2002-7

Ottawa, 12 February 2002

CRTC denies TELUS Communications Inc.'s application for business and digital network access services in Alberta

Reference: Tariff notice 392


In its application filed on 29 June 2001, TELUS Communications Inc. (TCI), proposed revisions to the former TCI General Tariff Item 425, Exchange Service Local Business Contract Option (LBCO), Item 485, Integrated Services Digital Network - Basic Rate Interface (ISDN-BRI) Service, and Item 500, Digital Network Access (DNA) Service.


Specifically, TCI proposed to increase certain LBCO rates in bands B2, C and D to maintain the relative discount relationships with the monthly local business rates that were increased effective 7 May 2001 under Order CRTC 2001-372, 2001 Price cap filing - Changes to service rates in Alberta. The increases range from 5.6% to 10.1% depending upon the rate sub-band.


TCI also proposed price reductions to selective access components of the DNA service in the more competitive rate bands, as well as an increase of 10% in monthly rates for all link components.


The company further proposed to adjust certain ISDN-BRI rate components to align prices between bands and sub-bands, and to better reflect term contract benefits.


Call-Net Enterprises Inc. (Call-Net) and Rogers Wireless Inc. (RWI) filed comments.


Call-Net submitted that the Commission should deny the proposed increases to DNA links until a new Phase II cost study is filed. Call-Net further requested that the Commission ensure that the proposed rate changes to DNA and ISDN-BRI comply with the company's price cap indices.


RWI objected to the proposed increases to DNA links arguing that these increases were being used to finance rate reductions in the lower rate bands.


TCI submitted that its application complies with its price cap indices, meets the imputation test for the proposed rate reductions to selective DNA components and is in accordance with current Commission rules.


The Commission notes that the imputation test submitted by TCI was aggregated on a portfolio-wide basis for DNA. The Commission finds that, at a minimum, the imputation test for DNA should be filed separately for each service speed. Accordingly, the Commission denies the proposal to decrease prices for selective access components of DNA service.


In any future filings regarding DNA and ISDN-BRI, TCI is requested to specify, with a rationale, whether the link and access services should be assessed on a combined basis, and whether the channel service should be assessed on a standalone basis.


Given that the proposed rate decreases to selective DNA components are denied, the increases proposed by the former TCI to some LBCO rates would drive the actual price index above the price cap index.


In light of the foregoing, the Commission denies the tariff notice 392 application.

Secretary General

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Date Modified: 2002-02-12

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