ARCHIVED - Telecom decision CRTC 2002-8

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Telecom Decision CRTC 2002-8

Ottawa, 12 February 2002

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

Reference: TCBC tariff notice 4153


In its application filed on 29 June 2001, TELUS Communication Inc. (TCI) proposed revisions to the former TELUS Communications (B.C.) Inc. (former TCBC) General Tariff Item 32, Exchange Service Local Business Contract Option (LBCO), and Item 447, Digital Network Access (DNA) Service.


Specifically, TCI proposed to increase certain LBCO rates in bands C and D to maintain the relative discount relationships with the monthly exchange rates that were increased effective 7 May 2001 under Order CRTC 2001-373, 2001 Price cap filing - Service rate changes for British Columbia. The increases range from 7.4% to 9.1% depending upon the rate sub-band and rate element.


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.


Rogers Wireless Inc. filed comments objecting to the proposed rate increases to DNA links, arguing that these increases were being used to finance rate reductions to the access component 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 this service, 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 TCBC to some LBCO rates would drive the actual price index above the price cap index.


In light of the foregoing, the Commission denies the former TCBC tariff notice 4153.

Secretary General

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Date Modified: 2002-02-12

Date modified: