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Telecom Decision CRTC 2003-50
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Ottawa, 24 July 2003
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Aliant Telecom Inc.
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Reference: Tariff Notices 39, 39A and 39B
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Centrex Service
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In this decision, the Commission denies an application by Aliant Telecom Inc. for proposed tariff revisions that would add a volume discount rate to its Centrex services in the city of Halifax.
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1.
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The Commission received an ex parte application by Aliant Telecom Inc. (Aliant Telecom, the company), dated 8 August 2002, and amended on 1 November 2002 and 23 January 2003. Aliant Telecom proposed to add a five-year contract option for large Centrex customers (over 12,000 lines) for Nova Scotia Rate Band A at a monthly rate of $19.20 per line. Aliant Telecom indicated that if these customers also met proposed loyalty criteria by purchasing toll and wireless services from Aliant Telecom, they would qualify for a monthly rate of $18.20 per line. The company filed an imputation test in support of the proposed lower rates.
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2.
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Aliant Telecom stated that the purpose of these revisions was to set competitive price points for the large volume purchase of Centrex Business Service and reward loyalty.
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3.
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In amendments to the original application, Aliant Telecom placed the application on the public record, removed the loyalty program from the proposal and substituted the monthly rate of $18.20 per line for the previously proposed monthly rate of $19.20 per line for the five-year contract option for large Centrex customers in Rate Band A in Nova Scotia.
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4.
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The Commission received comments from AT&T Canada Corp. (AT&T Canada) on 3 December 2002 and on 24 February 2003, from the Nova Scotia Ministry of Transportation and Public Works on 20 February 2003 and from the Cape Breton Regional Municipality on 20 March 2003. Reply comments were received from Aliant Telecom on 13 December 2002 and on 6 March 2003.
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5.
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AT&T Canada submitted that Aliant Telecom was proposing to drastically reduce the rate for one customer in one geographical area while maintaining its current prices everywhere else, thereby preventing local competition from developing in that area. AT&T Canada also submitted that Aliant Telecom was proposing to further de-average its rates in Rate Band A, contrary to the Commission's directive in Regulatory framework for the second price cap period, Telecom Decision CRTC 2002-34, 30 May 2002 (Decision 2002-34).
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6.
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In reply, Aliant Telecom submitted that it was proposing to decrease the price of the service across the entire rate band and that, in its view, this did not constitute rate de-averaging within a band.
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7.
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The Commission notes that Centrex is classified as an Uncapped service.
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8.
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In Decision 2002-34, at paragraph 456, the Commission stated that: ".... should an ILEC seek to further de-average rates for Uncapped services, it should provide the rationale in its application."
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9.
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The Commission finds that the proposal would result in further rate de-averaging because an additional rate for Centrex lines would become available in Rate Band A.
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10.
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The Commission considers that Aliant Telecom did not provide sufficient rationale for proposing further rate de-averaging.
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11.
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Accordingly, the Commission denies Aliant Telecom's application.
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Secretary General
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This document is available in alternative format upon request and may also be examined at the following Internet site: http://www.crtc.gc.ca
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Date Modified: 2003-07-24