ARCHIVED - Telecom Order CRTC 2002-381

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Telecom Order CRTC 2002-381

Ottawa, 13 September 2002


Reference: Tariff notice 96

Trunk line service


The Commission received an application from O.N.Telcom, dated 29 November 2001, to revise General Tariff item 2040, Rate Schedules for Primary Exchange (Local) Service, in order to match the monthly rate for trunk line across all rate groups with the monthly rate for single-line business service set at $42.60.


O.N.Telcom submitted that its proposal would eliminate the differential between rates for single-line and trunk line business services and that it was consistent with the rate structure approved for Bell Canada in Telecom Order CRTC 97-803, 11 June 1997 (Order 97-803). O.N.Telcom noted that its current single-line business rate is $42.60 ($45.45 including Touch-Tone) whereas its trunk line rates range from $17.40 to $70.20.


The Commission received no comments with respect to the application.


The Commission notes that in Regulatory framework for the small incumbent telephone companies, Decision CRTC 2001-756, 14 December 2001 (Decision 2001-756), it stated that a small incumbent local exchange carrier (ILEC) could propose an increase in its monthly business rate, if it considered the existing rate too low. The Commission further stated that it would consider all proposed rates on a case-by-case basis.


The Commission also notes that in Decision 2001-756 it adopted a cost proxy approach for determining the small ILECs' subsidy requirement in order to reduce their regulatory burden. Consistent with that approach, the Commission considers it appropriate to apply the cost-based rate of $45.45 approved for Bell Canada in Order 97-803 in considering O.N.Telcom's proposed rate.


Given that O.N.Telcom's proposed rate is equal to the rate approved for Bell Canada, the Commission approves O.N.Telcom's application and directs the company to notify all customers of the rate changes, by way of a billing insert or a letter, 30 days prior to the effective date of the rate changes. The revisions are to take effect 30 days after the written notice is sent to customers.


O.N.Telcom is to issue revised tariff pages forthwith to reflect these changes.

Secretary General

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Date Modified: 2002-09-13

Date modified: