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Letter
Our file: 8661-C25-200302969
BY TELECOPIER
Ottawa, 16 May 2003
Don Bowles
Vice-President Regulatory Affairs
Call-Net Enterprises Inc.
2235 Sheppard Avenue East
Atria II, Suite 1800
North York, Ontario
M2J 5G1
Dear Mr. Bowles:
Subject: Part VII application by Call-Net Enterprises Inc., on behalf of itself and its wholly owned affiliates including Sprint Canada Inc. and Call-Net Communications Inc., requesting that the Commission review the rates for Compensation Per Call
The Commission is in receipt of an application dated 5 March 2003, pursuant to Part VII of the CRTC Telecommunications Rules of Procedure from Call-Net Enterprises Inc., on behalf of itself and its wholly owned affiliated including Sprint Canada Inc. and Call-Net Communications Inc. (Call-Net). Call-Net requested that the Commission review the rates for Compensation Per Call for toll-free calls to ensure the rates conform with the pricing principles in Regulatory framework for second price cap period, Telecom Decision CRTC 2002-34, 30 May 2002.
On 4 April 2003, Aliant Telecom Inc., Bell Canada, MTS Communications Inc., and Saskatchewan Telecommunications (collectively, the Companies) and TELUS Communications Inc. (TELUS) filed comments.
The Companies submitted that the rate for Compensation Per Call is "a cost-based rate with a reasonable mark-up", quoting the Commission in paragraph 42 of Follow-up to Regulatory framework for second price cap period, Telecom CRTC Decision 2002-34 - Service basket assignment, Telecom Decision CRTC 2003-11, 18 March 2003 (Decision 2003-11). However, the Companies recognized that the cost study supporting the current rate was completed over four years ago and stated that Bell Canada would file an updated cost study by 23 April 2003.
TELUS stated that it had not provided cost studies with its tariff application to introduce a Payphone Per Call Compensation service, Tariff Notice 173, Item 315 and Tariff Notice 4019, Item 21. TELUS stated that, instead, it had submitted that the rate approved for Bell Canada in Pay Telephone Compensation per Call for Toll-free Calls, Telecom Order CRTC 99-1017, 22 October 1999 would be appropriate for TELUS because its incremental costs and fixed and common costs per call would not be lower than Bell Canada's. TELUS noted that the Commission approved TELUS' tariff applications in Compensation for toll-free payphone calls and tracking report service approved, Order CRTC 2000-175, 3 August 2000.
Moreover, in its 4 April 2003 submission, TELUS stated that the Compensation Per Call rate should be based on cost plus the approved mark-up of 15% as determined by the Commission in Decision 2003-11. TELUS stated that it would file its cost study by 23 May 2003.
In a letter dated 15 April 2003, Call-Net stated that it had no objection if Bell Canada and TELUS were to file cost studies.
On 23 April 2003, Bell Canada filed a proposed revision to its Access Services Tariff Item 43 - Compensation Per Call, Tariff Notice 6747, and included an updated cost study in support of the proposed revised rate.
In light of Bell's tariff application and TELUS' proposal to file its cost study on 23 May 2003, it is unnecessary to proceed with Call-Net's application at this time. Call-Net may file any comments it has on the record of those two tariff applications, copying the applicant.
Yours truly,
Shirley Soehn,
Executive Director Telecommunications
c.c. Leah Ackerman, CRTC (819) 997-4577
Interested parties to Public Notice 98-31
Interested parties to Public Notice 2001-37
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