ARCHIVED - Telecom Order CRTC 2002-321

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Telecom Order CRTC 2002-321

Ottawa, 26 July 2002

Northwestel Inc.
Reference: Tariff notice 769

Voice grade channels

1.

The Commission received an application by Northwestel Inc. (Northwestel), dated 18 December 2001, to revise Private Wire Service Tariff item 202, Voice Grade Channels, in order to increase, by an average of 20%, the monthly mileage rates, the monthly voice link rate, and service charges for voice grade channels. Northwestel also proposed to remove mileage bands above 490 miles, as there are no existing customers, nor expected demand, for this service in these bands.

2.

The company noted that voice grade channels are dedicated lines between customer service points between two exchange areas. The channels are used for a number of different applications, including but not limited to voice grade, below voice grade, and analogue low speed data applications.

3.

Northwestel noted that the proposed rate increases would more closely align its rates with those of other telephone companies. The company expected that the increases to mileage rates would encourage customers to migrate from analog private line services to more cost-effective services such as digital private line or long distance. It indicated that the proposed increase to the voice link charge was requested in order to simplify the service by aligning voice link charges with data link charges.

4.

In comments on the application, dated 12 February 2002 and 25 March 2002 respectively, Enbridge Pipelines (NW) Inc. and the Yukon Community and Transportation Services Emergency Measures Branch opposed the rate increases on the grounds that they are significant and there is a lack of costing information from Northwestel to support the proposed rates.

5.

The Commission notes that the rates proposed by Northwestel are comparable to rates approved by the Commission for other incumbent local exchange carriers (ILECs) offering the same service. In the Commission's view, it is unlikely that Northwestel's cost for providing these services would be less than the cost to other ILECs offering the same service.

6.

The Commission finds that the proposed rates are in accordance with the pricing constraints set out in Regulatory framework for the small incumbent telephone companies, Decision CRTC 2001-756, 14 December 2001.

7.

The Commission approves Northwestel's application. The revisions take effect as of the date of this order.

8.

Northwestel is to issue forthwith revised tariff pages to reflect these changes.

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

Date Modified: 2002-07-26

Date modified: