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ARCHIVED - Telecom Decision CRTC 2003-51

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Telecom Decision CRTC 2003-51

  Ottawa, 24 July 2003
 

MTS Communications Inc.

  Reference: Tariff Notice 496
 

Centrex PLUS Service

  In this decision, the Commission denies an application by MTS Communications Inc. for proposed tariff revisions that would add a volume discount rate to its Centrex PLUS Service.

1.

The Commission received an application by MTS Communications Inc. (MTS), dated 27 December 2002, proposing to add a volume discount band to its General Tariff item 1987, Centrex PLUS. MTS proposed a new volume discount band for customers with more than 8,000 lines and the proposed monthly rates would be $26.00 per line for a minimum contract period (MCP) of 3 years and $24.85 per line for a 5-year MCP, down from the current rates of $27.00 and $26.00 respectively available to these customers.

2.

MTS stated that the proposed rate decrease for large Centrex systems was in response to demand from business customers for more competitively priced service options for Centrex service.

3.

MTS indicated that Centrex PLUS Service was available to customers in Rate Bands A and B who subscribe to Centrex 3 or Centrex 5 service and who rent, lease, or purchase all their Centrex sets from MTS.

4.

The Commission did not receive any comments with respect to the application.

5.

The Commission notes that Centrex is classified as an Uncapped service.

6.

In Regulatory framework for the second price cap period, Telecom Decision CRTC 2002-34, 30 May 2002, 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."

7.

The Commission finds that the proposal would result in further rate de-averaging because additional rates for Centrex lines would become available in Rate Bands A and B.

8.

The Commission considers that MTS did not provide sufficient rationale for proposing further rate de-averaging.

9.

Accordingly, the Commission denies MTS' application.
  Secretary General
  This document is available in alternative format upon request and may also be examined at the following Internet site: http://www.crtc.gc.ca

Date Modified: 2003-07-24

Date modified: