ARCHIVED - Telecom Order CRTC 2003-237

Telecom Order CRTC 2003-237

Ottawa, 10 June 2003

TELUS Communications (Québec) Inc.

"Reconquête petites entreprises" Package

1.

The Commission received an application by TELUS Communications (Québec) Inc. (TELUS Québec), dated 31 January 2003, to revise its General Tariff item 2.28, Forfaits d'affaires, in order to introduce new service bundles combining optional services with long distance minutes on a variable rate schedule depending on the contract period. The proposed service bundles are as follows:

- Outils téléphoniques and 200 long distance minutes, at the monthly rates of $26.00 for customers under no contract, $24.50 for customers under a 1-year contract and $22.00 for customers under a 3-year contract;

- Outils téléphoniques and 500 long distance minutes, at the monthly rates of $39.00 for customers under no contract, $37.50 for customers under a 1-year contract and $35.00 for customers under a 3-year contract;

- Outils téléphoniques and 200 long distance minutes with voice messaging, at the monthly rates of $35.00 for customers under no contract, $31.50 for customers under a 1-year contract and $29.00 for customers under a 3-year contract; and

- Outils téléphoniques and 500 long distance minutes with voice messaging, at the monthly rates of $48.00 for customers under no contract, $44.50 for customers under a 1-year contract and $42.00 for customers under a 3-year contract.

2.

TELUS Québec stated that it had not yet developed Phase II costing for its services and would not be able to provide the Commission with an imputation test. TELUS Québec however, did provide its estimated costs for the long distance minutes it proposed as part of the bundles. TELUS Québec also indicated that the provisioning costs associated with Outils téléphoniques and voice messaging were predominantly software based. TELUS Québec argued that the difference between the bundled rate and the associated cost for long distance minutes would be sufficient to recover the costs associated with Outils téléphoniques and voice messaging.

3.

The Commission received no comments with respect to the application.

4.

In Commission approves terms and conditions for local exchange and local payphone competition in the territories of TELUS Communications (Québec) Inc. and Télébec ltée, Order CRTC 2001-761, 3 October 2001, the Commission found it appropriate to subject Télébec ltée to the same local competition rules as were in place for the large incumbent local exchange carriers (ILECs).

5.

In Local competition, Telecom Decision CRTC 97-8, 1 May 1997, the Commission considered that ILECs should not be prevented from bundling forborne services with ILEC local exchange services. The Commission noted however, that when a forborne service is included in a new bundled service, its Phase II costs must be filed as part of an imputation test.

6.

The Commission notes that TELUS Québec's Phase II costs for local exchange services will not be available until a decision has been issued in the proceeding initiated by Implementation of competition in the local exchange and local payphone markets in the territories of Télébec and TELUS (Québec), Public Notice CRTC 2001-69, 14 June 2001 (PN 2001-69).

7.

Accordingly, as an interim measure, the Commission considers it appropriate to evaluate TELUS Québec's applications on a case by case basis, using alternate costing support submitted by the company.

8.

The Commission notes that the estimated costs submitted by TELUS Québec for its long distance service are consistent with the costs provided by other ILECs for their long distance service. As such, the Commission notes that there is a considerable margin between the bundled rates proposed by TELUS Québec and the costs associated with long distance service. The Commission also notes that the additional costs associated with the provisioning of optional services are small since they are predominantly software-based services.

9.

Accordingly, the Commission considers that the bundled service rates proposed by TELUS Québec are likely to recover the associated costs of both the proposed long distance service and the optional service features.

10.

The Commission approves TELUS Québec's application. The revisions take effect as of the date of this order.

11.

TELUS Québec is to issue forthwith revised tariff pages to reflect these changes.

Secretary General

This document is available in alternative format upon request and may also be examined at the following Internet site: www.crtc.gc.ca