ARCHIVED - Telecom Order CRTC 2003-28

Telecom Order CRTC 2003-28

Ottawa, 15 January 2003

TELUS Communications Inc.

Reference: Tariff Notice 493

Centrex service rate increase

1.

The Commission received an application by TELUS Communications Inc. (TCI), dated 27 June 2002, to revise the former TCI General Tariff item 585, Centrex Service, and item 240, Extended Area Service (EAS), for Centrex service in the province of Alberta.

2.

TCI proposed to increase the monthly rates for non-contracted and contracted Centrex access lines for Provincial Centrex Service customers in Alberta. The proposed monthly increase per access line ranged from $1.95 to $13.30 for non-contracted service and up to $5.50 for contracted service. TCI also proposed to increase the monthly rates for National Centrex Service access lines and Centrex Multiline Service access lines provided to Alberta customers. The proposed increases per access line were $0.50 in Rate Band E, $1.50 in Rate Band F, and $3.00 in Rate Band G.

3.

TCI also proposed to eliminate the Centrex Rate Band F7 by moving the Drayton Valley exchange from Rate Band F7 to Rate Band F. TCI submitted that this would align the rates in Rate Band F and result in a weighted average rate increase of 11.2% for Centrex access lines in Drayton Valley.

4.

On 26 July 2002, AT&T Canada Corp., on behalf of itself and AT&T Canada Telecom Services Company (collectively, AT&T Canada) filed comments. AT&T Canada submitted that the Commission should deny the application.

5.

AT&T Canada argued that TCI had provided no reasons for the proposed rate increases. AT&T Canada further submitted that it appeared that the proposed changes were designed to lock customers into longer-term contracts.

6.

In reply, TCI submitted that its application was in accordance with Commission rules for an uncapped service such as Centrex and its application should be approved. TCI argued that, since there were no non-contract customers with more than 100 access lines, the proposed rates were not designed to lock customers into longer-term contracts. TCI also stated that the proposed changes would align TCI's Alberta and British Columbia Centrex services, thereby facilitating the future harmonization of the former TCI and TELUS Communications (B.C.) Inc. Centrex tariffs.

7.

The Commission notes that in Regulatory framework for second price cap period, Telecom Decision CRTC 2002-34, 30 May 2002, Centrex service was classified as an uncapped service and, as a result, rate increases for Centrex service were not required to satisfy the price cap constraints.

8.

The Commission notes that in Restructured band, Telecom Order CRTC 2002-287, 16 July 2002 (Order 2002-287), the Commission approved for TCI the uniform banding structure approved in Restructured bands, revised loop rates and related issues, Decision CRTC 2001-238, 27 April 2001. The Commission finds TCI's proposal to move the Drayton Valley exchange from Rate Band F7 to Rate Band F consistent with the uniform banding structure the Commission approved in Order 2002-287.

9.

In light of the above, the Commission approves TCI's application. The revisions take effect as of the date of this order.

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