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Telecom Order CRTC 2003-174
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Ottawa, 2 May 2003
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Kenora Municipal Telephone System
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Reference: Tariff Notice 29
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Business primary exchange services
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1.
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The Commission received an application by Kenora Municipal Telephone System (KMTS), dated 29 January 2003, to revise its General Tariff item 4.03, Rate Schedule for Primary Exchange (local) Service, under section 100 in order to increase the monthly charge for Access Single Line Business, Access trunk Line Business, Access level 8 Business and Access Semi/Public Pay Station from $20.20 to $25.00.
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2.
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In Regulatory framework for the small incumbent telephone companies, Decision CRTC 2001-756, 14 December 2001 (Decision 2001-756), the Commission established a new regulatory framework for the small incumbent local exchange carriers (ILECs) that focused on prices, rather than earnings.
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3.
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In Decision 2001-756, the Commission directed the small ILECs whose monthly business rates were below $22.75 to file for approval, proposed increases in business rates to reach a minimum of $22.75. In the event that a company considered that a monthly business rate of $22.75 or its existing rate to be too low, it was permitted to file for approval, proposed monthly rates beyond the level of $22.75. All such proposals were to be accompanied by supporting rationale.
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4.
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In support of its application, KMTS indicated that it believed that the current rate of $20.20 was not compensatory. KMTS also noted that its proposed rate of $25.00 would be less than the rate approved for Bell Canada in a neighbouring exchange.
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5.
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The Commission notes that the proposed rates for KMTS business services are less than those previously approved for other ILECs operating in similar exchanges.
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6.
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The Commission considers that, while the associated costs of providing these services have yet to be examined by the Commission, it is unlikely that KMTS's costs would be less than Bell Canada's costs to provide these services in the neighbouring exchange.
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7.
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Accordingly, the Commission finds that the rates proposed by KMTS to be appropriate.
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8.
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The Commission received no comments with respect to the application.
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9.
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The Commission approves KMTS 's application. The revisions take effect as of the date of this order.
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10.
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KMTS is to issue a revised tariff page forthwith to reflect these changes.
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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: 2003-05-02