ARCHIVED - Telecom Order CRTC 2003-239

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Telecom Order CRTC 2003-239

  Ottawa, 11 June 2003
 

TELUS Communications (Québec) Inc.

  Reference: Tariff Notice 339
 

"Forfait intermédiaire 4"

1.

The Commission received an application by TELUS Communications (Québec) Inc. (TELUS Québec), dated 12 December 2002, to revise its General Tariff item 2.27, Forfaits résidentiels, in order to introduce a new service bundle combining residential local service with Name and Number Display, Voice Messaging and Call Return optional services at the monthly rate of $33.45 for rate bands C and D and $34.95 for rate bands E, F and G.

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 submitted however that its basic local service recovered its costs at the rate of $23.50. TELUS Québec indicated that the costs associated with Name and Number Display, Voice Messaging and Call Return were predominantly software based. TELUS Québec argued that the difference between the bundled rate and the basic service cost, $9.95 for rate bands C and D and $11.45 for rate bands E, F and G, would be sufficient to recover the costs associated with Name and Number Display, Voice Messaging and Call Return.

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. Furthermore, the Commission stated that if an ILEC bundled below-cost single line residential exchange services with other telecommunications services, the Commission would deem that the cost of the residential exchange services is equal to the tariffed rate for the purposes of the 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.

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 cost of TELUS Québec's residential exchange services would be deemed to be equal to the tariffed rate of $23.50 for the purposes of the imputation test. The Commission notes that the additional costs associated with the provisioning of optional services are small since they are predominantly software-based services. Finally, the Commission notes that there is a considerable margin between the bundled rates proposed by TELUS Québec and the imputed residential exchange service cost.

9.

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

10.

In light of the above, 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: http://www.crtc.gc.ca

Date Modified: 2003-06-11

Date modified: