ARCHIVED - Telecom Order CRTC 2002-442

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Telecom Order CRTC 2002-442

Ottawa, 26 November 2002

Bell Canada

Reference: Tariff Notice 742 (National Services Tariff)

Digital network access


The Commission received an application by Bell Canada, on behalf of Aliant Telecom Inc. (Aliant Telecom), dated 4 February 2002, to revise the National Services Tariff item 301, Digital Network Access (DNA), in order to increase the monthly rate from $60 to $85 for the DNA DS-1 links in the provinces of New Brunswick, Newfoundland and Labrador, Nova Scotia, and Prince Edward Island.


In its application, Bell Canada submitted that the current monthly rate was $60 for both the low speed DS-0 links and the higher speed DS-1 links. Bell Canada argued that its proposal to increase the DS-1 link rate, in addition to generating incremental revenues for Aliant Telecom, would result in a better price-positioning of the DS-0 and DS-1 links relative to each other.


The Commission received comments from Primus Telecommunications Canada Inc. on 12 February 2002, from Rogers Wireless Inc. on 15 February 2002, from Microcell Telecommunications Inc. on 18 February 2002, and from AT&T Canada Corp., on 6 March 2002 (collectively, the intervenors).


The intervenors generally opposed the application. The intervenors submitted that they relied heavily on DNA services, including DNA links, to provide service to end-users. The intervenors argued that, frequently, there were no competitive alternatives available and that the proposed rate increases would further impede the development of competition.


In its reply comments dated 15 March 2002, Bell Canada submitted that DNA links were currently classified as a Competitive Segment service, and as such, were not subject to any additional pricing constraints over and above those that already applied to all Competitive Segment services.


The Commission notes that, in Regulatory framework for second price cap period, Telecom Decision CRTC 2002-34, 30 May 2002 (Decision 2002-34), it re-assigned DNA services to the Other capped services basket and established a rate element constraint limiting individual rate increases to 10% per year for services in that basket.


The Commission finds that the proposed rate increase does not comply with the pricing contraints established in Decision 2002-34 for the Other capped services basket.


Accordingly, the Commission denies Bell Canada's application.

Secretary General

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Date Modified: 2002-11-26

Date modified: