Our File: 8638.C12.72/02
Ottawa, 7 November 2002
Mr. David Palmer
Director - Regulatory Matters
105 rue Hôtel-de-Ville
Dear Mr. Palmer
Subject: Bell Canada's Service Improvement Plan
This is further to the company's Service Improvement Plan (SIP) dated 18 September 2002.
Commission staff has a number of interrogatories for Bell Canada (see attached). The process for submissions and comment on the Bell Canada SIP and these interrogatories is amended to the following:
- Bell Canada is to provide responses to the enclosed interrogatories by 21 November 2002, serving copies on all parties.
- Interested parties may file comments regarding Bell Canada's SIP and its responses to interrogatories by 28 November 2002, serving copies on all parties.
- Bell Canada may file a reply regarding those comments by 5 December 2002, serving copies on all parties.
Where a document is to be filed or served by a specific date, the document is to be actually received, not merely sent by that date.
Director, Contribution & Costing
cc Public Notice CRTC 2001-37 List of Interested Parties
Hugh Thompson, CRTC (819) 953-6081
Attachment 1: Interrogatories for Bell Canada
- With reference to Appendices A-1 and B-1 of the SIP dated 18 September 2002 (the SIP), it appears that Bell Canada proposes to invest about $2.5 million in capital expenditures in 2002. Confirm that Bell Canada is currently carrying out those projects scheduled for 2002 as set out in the Appendices in question.
- With reference to the SIP, confirm that Bell Canada is planning to carry out the $127.8 million SIP (including Appendices A2 and B2) pending the Commission's decision regarding Bell Canada's application dated 18 September 2002 to review and vary the Commission's directives set out in Regulatory Framework for Second Price Cap Period, Telecom Decision CRTC 2002-34, 30 May 2002.
- With reference to the SIP, provide a table breaking down the proposed expenditures by year for the four years 2002-2005 of the SIP for each of Appendix A-1, Appendix B-1, and the total of the two Appendices (the $78.5 million SIP).
- With reference to the SIP, provide a table breaking down the proposed expenditures by year for the four years 2002-2005 of the SIP for each of Appendix A-1, Appendix A-2, Appendix B-1, Appendix B-2, and the total of the four Appendices (the $127.8 million SIP).
- With reference to the SIP, Phase II Cost Study, Appendix C, page 11 of 13, provide a table with a detailed breakdown of "Expenses causal to the program - Other" expenses into: (i) market research and technical trials, (ii) proposal development, (iii) the address/mail-out activities, (iv) moves/rearrangements of existing plant, and (v) other (provide details). Also, provide a breakdown of each of these expenses by year.
- A) With reference to the SIP, Phase II Cost Study, Appendix C, page 5 of 13, paragraph 10, provide explanations and rationale for including the costs for 2000 and 2001 in the study.
B) Explain how the costs noted in part A) for 2000 and 2001 were incorporated into the 2002 PWAC, providing detailed calculations.
C) Confirm that the costs noted in part A) for 2000 and 2001 have not been recovered (in part or in total) in other previous Phase II studies.
- With reference to the SIP, provide an explanation of how the $1,000 customer contribution is accounted for in the SIP.
- With reference to the SIP, Appendix C, pages 5 and 6 of 13, section 2.3.2, provide an explanation for the differences between the table entitled "Estimate of Year-End NAS Associated with SIP in HCSAs" and the table entitled "Estimate of Year-End NAS for Residence PES Associated with SIP in HCSAs.
- With reference to the SIP, for the $127.8 million SIP, provide a table that sets out the annual TSR by Band. The table should show the Phase II SIP cost/NAS/month, the number of year-end NAS, and the amount of the TSR by Band and the grand total. Provide the same table for the $78.5 million SIP. Calculate the difference for the two TSR amounts.
- With reference to the SIP, page 4, paragraph 18, Bell Canada states that while it will be able to recover the AEC [Annual Equivalent Cost] associated with the SIP expenditures in non-HCSA bands by means of drawing down the deferral account, this will not permit the company to accomplish full recovery of its SIP costs in these areas over the new price cap period. Provide a full explanation for this statement and indicate how the company proposes to recover the full costs of the SIP in these areas.