ARCHIVED - Telecom Order CRTC 2002-366-1

Telecom Order CRTC 2002-366-1

Ottawa, 9 October 2002

Aliant Telecom Inc.

Reference: Tariff Notice 32

Erratum: Telecom Order CRTC 2002-366

This order replaces Business single-line access service, Telecom Order CRTC 2002-366, 3 September 2002, (Order 2002-366). In that order, the Commission approved the application by Aliant Telecom Inc. (Aliant Telecom) to revise its General Tariff item 205.2, Single-line Access. Paragraph 4 of Order 2002-366 incorrectly stated that the Commission had not received any comments on Aliant Telecom's application. In fact, the Commission received comments from AT&T Canada Corp. on 14 August 2002 and had taken them into consideration during its examination of Aliant Telecom's application. This order reflects the comments taken into consideration by the Commission in reaching its decision.

The Commission received an application by Aliant Telecom Inc. (Aliant Telecom), dated 12 July 2002, to revise General Tariff item 205.2, Single-line Access Service, (the application) in order to:

- increase the rate for business single-line access service in New Brunswick by $3 per access;

- grandfather the Monthly Rate Per Network Access Line - Measured Rate in New Brunswick for new customers; and

- change the format of the proposed page to align with the company's standards for Aliant Telecom's tariff.

Aliant Telecom proposed to notify customers of the proposed rate increase through an informational letter. Aliant Telecom noted that grandfathering the Measured Rate Per Network Access Line - Measured Rate in New Brunswick would not affect the rates charged to existing customers.

The Commission notes that the business single-line access service is a capped service and that Aliant Telecom would not be filing price cap information until the new price cap model and basket structure have been approved. The price cap model would then be updated to reflect this increase.

AT&T Canada's Comments

On 14 August 2002, AT&T Canada Corp., on behalf of itself and AT&T Canada Telecom Services Company (collectively, AT&T Canada) filed comments with respect to Aliant Telecom Tariff Notice (TN) 32 and TNs 20, 20A and 20B.

AT&T Canada stated that Aliant Telecom had neither identified the price cap basket that these services belonged to nor indicated whether its proposed changes would meet the price cap constraints.

In the view of AT&T Canada, Aliant Telecom's tariff applications had ignored the Commission's determination relating to de-averaging rates within a band as set out in paragraph 433 of Regulatory Framework for Second Price Cap Period, Telecom Decision CRTC 2002-34, 30 May 2002 (Decision 2002-34). AT&T Canada noted that under TN 32 and TN 20B Aliant Telecom proposed to reduce the rates for business multi-line access service in Nova Scotia and Prince Edward Island and to increase the rates for business multi-line access service and business single-line access service in New Brunswick. AT&T Canada submitted that the Commission should deny Aliant Telecom TN 32.

Aliant Telecom's Reply

On 26 August 2002, Aliant Telecom filed reply comments arguing that the application met the Decision 2002-34 requirements.

With respect to the issue of de-averaging within a band, Aliant Telecom noted that its bands are defined on a provincial basis and not on an Atlantic region basis. Aliant Telecom submitted that its proposal to increase rates for business single-line access service in New Brunswick clearly does not violate the Commission's determination concerning de-averaging rates within a band.

Commission Determination

In Decision 2002-34, the Commission assigned Aliant Telecom's General Tariff item 205.2, Single-line access service, to the single and multi-line business local exchange services basket. In that decision, the Commission established a constraint equal to inflation applicable to that basket and adopted a rate element constraint to limit increases in the incumbent local exchange carriers' rates for single and multi-line business local exchange services to 10% per year.

The Commission notes that the rate increase proposed by Aliant Telecom in TN 32 does not violate the 10% rate element constraint limit for business single-line access service in New Brunswick.

The Commission notes that the bands are defined on a provincial basis in Aliant Telecom's serving territory. In addition, the Commission notes that Aliant Telecom's proposal maintains a single rate in each band for business single-line access service in New Brunswick. Accordingly, the Commission does not find that Aliant Telecom's proposal under TN 32 violates the Commission's policy regarding the de-averaging of rates for a service within a band.

The Commission approves Aliant Telecom's application as provided for in Order 2002-366. The revisions take effect as of 3 September 2002.

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