ARCHIVED - Telecom - Commission Letter - 8638-C12-60/02 - Follow-up to TelecomDecision CRTC 2002-34 - Monthly Itemized Billing Statements

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Letter

Ottawa, 18 October 2002

File No: 8638-C12-60/02

By Facsimile

Mr. Al Wallace
Vice-President, Regulatory Matters
Bell Canda
105 Hôtel-de-Ville, Floor 5
Hull, Québec
J8X 4H7

Mr. Edmund H. Burry
Manager-Regulatory Reporting
Aliant Telecom Inc.
P.O. Box 2110
St. John's, Newfoundland
AlC 5H6

Dear Sirs:

Re: Follow-up to Telecom Decision CRTC 2002-34 - Monthly Itemized Billing Statements

In Regulatory framework for the second price cap period, Telecom Decision CRTC 2000-34, 30 May 2002, the Commission directed that Bell Canada (Bell) and Aliant Telecom Inc. (Aliant) show cause why they should not be required to send customers monthly itemized billing statements with the same level of detail as is currently provided on an annual basis. We have received submissions from Aliant and Bell on 2 July 2002 and comments from the Public Interest Advocacy Center (PIAC) on behalf of the Consumers' Association of Canada, the National Anti-Poverty Organization and l'Union des consommateurs on 12 July 2002. Aliant and Bell filed reply comments on 19 July 2002. PIAC filed a supplementary submission on 9 September 2002.

To allow the record to be more fully developed, the attached interrogatories are addressed to Aliant and Bell. The Companies are to file responses to the interrogatories by 28 October 2002, serving each other and PIAC.

Aliant, Bell, and PIAC are to file any comments on the interrogatory responses of the other party by 7 November 2002, serving each other.

Aliant and Bell are to file any reply comments by 18 November 2002, serving each other and PIAC. The Companies may file reply comments on PIAC's supplementary submission by 20 November 2002.

The above documents are to be received, not merely sent, by the dates set out above.

Yours sincerely,

Brenda Jolicoeur
Acting Director
Consumer Policy and Numbering Administration

Att.

c.c: Philippa Lawson, PIAC
Philippe Tousignant, CRTC (819) 997-1334

 

Aliant Telecom (CRTC) 18Oct2002

100. In its 2 July 2002 submission, Aliant reports that subscribers in Nova Scotia and Prince Edward Island have received a monthly itemized billing statement sinceearly 2001. Provide costs - total costs and costs per residential Network Access Service (NAS) broken down by major activity/expense. - incurred by Aliant to provide all its residential customers (including those who receive their bill in an alternative format) to implement this service. Separate and explain the start-up and recurring costs. Compare overall annual costs of providing billing statements prior to the introduction of the service with the overall annual costs incurred once monthly itemized billing was begun.

101. Provide estimated additional costs - total costs and costs per residential NAS broken down by major activity/expense - that would be incurred if Aliant were required to provide all residential subscribers (including those who receive their bill in an alternative format) in New Brunswick and Newfoundland with a monthly itemized billing statement for primary exchange services, local optional and other tariffed services. Separate and explain the start-up and recurring costs. Identify the major cost assumptions to derive these estimates.

102. Provide estimated additional costs -total costs and costs per residential NAS, broken down by major activity/expense - for Aliant's proposal to offer monthly itemized billing statements for primary exchange services, local optional and other local tariffed services only to those residential subscribers (including those who receive their bill in an alternative format) who indicate a preference for this option (opt-in scenario). Separate and explain the start-up and recurring costs. Identify the major cost assumptions to derive these estimates.

103. Assume Aliant Telecom is required to provide all its residential subscribers with a monthly itemized billing statement for primary exchange services, local optional and other local tariffed services. Assume Aliant Telecom is allowed to offer an option to opt out to subscribers (opt-out scenario) who wished to receive their bill under the conditions set in Review of the General Regulation of the Federally Regulated Terrestrial Telecommunications Common Carriers, CRTC Telecom Decision 86-7, Ottawa, 26 March 1986 (Decision 86-7). Provide estimated additional costs, total costs and costs per residential NAS, broken down by major activity/expense. Separate and explain the start-up and recurring costs. Identify the major cost assumptions to derive these estimates.

104. Provide the rationale for all differences in the costs per residential NAS (if any), between responses for Q 101, 102 and 103. In particular, provide separately the estimated additional costs, if any, specifically required to administer the consumer registration process for the opt-in and opt-out scenarios. Separate and explain the activities/expenses incurred as start-up costs from recurring costs. Identify the major cost assumptions to derive these estimates.

105. In paragraph 5 of its 2 July 2002 submission, Aliant refers to the withdrawal of monthly itemized billing statements in New Brunswick a number of years ago due to customers' concerns about the amount of paper. Submit all data relevant to these concerns expressed by customers including but not limited to:

a) volume of complaints per year by category of customer (residential and business) for the two years prior to the withdrawal;

b) examples of written or verbal communications from customers expressing these concerns; and

c) any study, survey or other research relevant to customers' concerns about the amount of paper used specifically for itemized billing statements, conducted prior to the withdrawal.

106. Assume that Aliant is required to send monthly itemized billing statements for primary exchange services, local optional and other local tariffed services to residential customers.

a) On average, how many additional lines would need to be printed on a monthly residential billing statement?

b) For what percentage of Aliant's residential subscribers will it be necessary to print additional pages?

c) What possible changes to the current layout /template of the billing statement could offset the need for additional paper costs on an on-going basis? If the company considers that changes to the layout/template of the billing statement are not a viable option to reduce paper costs, justify.

b) Disregarding the toll portion, non-telecom services and non-tarriffed services of a residential billing statement provide estimated additional costs to implement the above possible changes to the lay-out/template, broken down by major activity/expense. Differentiate start-up costs and recurring costs. Identify the major cost assumptions to derive these estimates.

107. Provide examples (paper format) of 2002 non-itemised residential monthly billing statements and of an itemized billing statement for each Aliant company.

108. For each Aliant company, provide the percentage of residential customers who subscribe to:

a) no residential optional services;

b) at least one optional local service.

109. Provide a complete list (by trade-mark names) of all available local optional and all other tariffed services that could have appeared on a residential itemized billing statement as of 1 May 1985, the close of the record for the proceeding associated with CRTC Telecom Decision 86-7.

110. Provide a complete list (by trade-mark names) of all available local optional and all other tariffed services that could appear on a residential itemized billing statement as of 1 October 2002. Also list separately all available bundle service offering, indicating for each bundle if individual services included in the bundle are detailed, on the itemized billing statements that Alliant Telecom currently provides.

111. Provide a complete list (trade-mark names) with a brief description of all non-tariffed telecom services, all non-telecom services and all other charges that can be printed on any residential local telephone billing statement as of 1 October 2002.

112. Aliant's residential subscribers can now receive or consult their monthly billing statement via the Internet.

a) Are primary exchange services, local optional and other local tariffed services itemized on a monthly basis on these billing statements? If not, what level of detail is provided on these billing statements?

b) Provide the current percentage of residential subscribers who use this service rather than receive their billing statements via mail. Provide an estimate of the expected growth in users (in percentage) of Internet billing services over the next 4 years. Identify the assumptions to derive these estimates.

113. Aliant's proposal, presented in the 2 July 2002 submission, is to require customers in Nova Scotia and Prince Edward Island to opt in into their current billing arrangement and to require customers in New Brunswick and Newfoundland to remain in their current billing arrangement unless they opt out of it. Provide justification for this difference in treatment of Aliant's customers.


Bell Canada (CRTC) 18Oct2002

100. Provide estimated additional costs - total costs and costs per residential Network Access Service (NAS), broken down by major activity/expense - that would be incurred if Bell were required to provide to all residential subscribers (including those who receive their bill in an alternative format) a monthly itemized billing statement for primary exchange services, local optional and other tariffed services. Separate and explain the start-up and recurring costs. Identify the major cost assumptions to derive these estimates.

101. Provide estimated additional costs -total costs and costs per residential NAS, broken down by major activity/expense - to implement Bell's proposal to offer monthly itemized billing statements for primary exchange services, local optional and other local tariffed services only to those residential subscribers (including those who receive their bill in an alternative format) who indicate their preference for it (opt-in scenario). Separate and explain the start-up and recurring costs. Identify the major cost assumptions to derive these estimates.

102. Assume Bell is required to provide all its residential subscribers with a monthly itemized billing statement for primary exchange services, local optional and other local tariffed services. Assume also that Bell is allowed to offer an option to opt-out to subscribers (opt-out scenario) who wished to continue receiving their bill under the conditions set in Review of the General Regulation of the Federally Regulated Terrestrial Telecommunications Common Carriers, CRTC Telecom Decision 86-7, Ottawa, 26 March 1986 (Decision 86-7). Provide estimated additional costs, total costs and costs per residential NAS, broken down by major activity/expense. Separate and explain the start-up and recurring costs. Identify the major cost assumptions to derive these estimates.

103. Provide the rationale for all differences in the costs per residential NAS (if any), between responses for Q 100, 101 and 102. In particular, provide separately the estimated additional costs, if any, specifically required to administer the consumer registration process for the opt-in scenario and for the opt-out scenario. Separate and explain the activities/expenses incurred as start-up costs from recurring costs. Identify the major cost assumptions to derive these estimates.

104. In its 2 July 2002 submission, Bell expressed the view that it should be allowed to draw down from the deferral account any incremental expenses and/or capital costs that would be attributable to the provision of itemized billing on a monthly basis. Assume Bell is required to provide all its residential subscribers with monthly itemized billing statements for primary exchange services, local optional and other local tariffed services.

a) Estimate the amount of the proposed draw down on the deferral account.

b) Address whether or not the draw down should be one-time or on-going. Explain fully.

105. Provide the percentage of Bell's residential customers who subscribe to:

a) no local optional services.

b) at least one local optional service.

106. In its 2 July 2002 submission, Bell refers to "additional costs, primarily due to incremental paper cost on an ongoing basis". Assume Bell Canada is required to send monthly itemized billing statements to residential customers for primary exchange services, local optional and other local tariffed service.

a) On average, how many additional lines would need to be printed on a monthly residential billing statement?

b) For what percentage of Bell's residential subscribers will it be necessary to print additional pages?

c) What possible changes to the current layout /template of the billing statement could offset the need for additional paper costs on an on-going basis? If the company considers that changes to the layout/template of the billing statement are not a viable option to reduce paper costs, justify.

d) Disregarding the toll portion, non-telecom services and non-tarriffed services of a residential billing statement provide an estimated additional costs to implement the above possible changes to the lay-out/template, broken down by major activity/expense. Differentiate start-up costs and recurring costs. Identify the major cost assumptions to derive these estimates.

107. Provide two examples (in paper format) of 2002 residential monthly billing statements: one itemized and one non-itemized.

108. Provide a complete list (by trade-mark names) of all available local optional and all other tariffed services that could have appeared on a residential itemized billing statement as of 1 May 1985, the close of the record for the proceeding associated with Decision 86-7.

109. Provide a complete list (by trade-mark names) of all available local optional and all other tariffed services that could appear on a residential itemized billing statement as of 1 October 2002. Also list separately all available bundled service offerings, indicating for each bundle if individual services included in the bundle are detailed, on the itemized billing statements that Bell currently provides.

110. Provide a complete list (trade-mark names) with a brief description of all non-tariffed telecom services, all non-telecom services and all other charges that can be printed on any residential local telephone billing statement as of 1 October 2002.

111. Bell's residential subscribers can now receive or consult their monthly billing statement via the Internet.

a) Are primary exchange services, local optional and other local tariffed services itemized on a monthly basis on these billing statements? If not, what level of detail is provided on these billing statements?

b) Provide the current percentage of residential subscribers who use this service rather than receive their billing statements via mail. Provide an estimate of the expected growth in users (in percentage) of Internet billing services over the next 4 years. Identify the assumptions to derive these estimates.

 

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