ARCHIVED - Telecom Order CRTC 2003-422

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Telecom Order CRTC 2003-422

  Ottawa, 16 October 2003

MTS Communications Inc.

  Reference: Tariff Notice 511

Teleroute 200 Service


The Commission received an application by MTS Communications Inc. (MTS), dated 15 August 2003, to revise its Supplementary Tariff Special Services and Facilities, item 5700, Teleroute 200 Service. MTS proposed to increase the monthly rate for Teleroute termination and the monthly mileage charge by 10%.


MTS submitted that the proposed tariff revisions complied with all of the pricing constraints set out in Regulatory framework for second price cap period, Telecom Decision CRTC 2002-34, 30 May 2002 (Decision 2002-34).


No comments were received with respect to the application.

Commission analysis and determination


In Decision 2002-34, the Commission established the price regulation regime that is now applicable to the following incumbent local exchange carriers (ILECs): Aliant Telecom Inc., Bell Canada, MTS, Saskatchewan Telecommunications and TELUS Communications Inc.


The Commission notes that Teleroute 200 Service has been assigned to the other capped services basket. In Decision 2002-34, the Commission applied a number of constraints to the rates for services in the other capped services basket in order to provide customers of those services with price protection. They include:
  • a basket constraint, operating through the service basket limit (SBL) for that basket, which must be updated annually by the rate of inflation less the productivity offset;
  • a rate element constraint limiting rate increases for a service to 10% per year; and
  • a provision, in order to prevent an ILEC from decreasing rates in more competitive areas and increasing rates in less competitive areas of the same band, that rates for business local exchange services would not be permitted to be further de-averaged within a band.


The Commission notes that the proposed increases to the rates for Teleroute 200 Service do not exceed 10%. The Commission finds that the proposed tariff revisions comply with the basket constraint requirement that the service basket index not exceed the SBL for the other capped services basket.


Accordingly, the Commission finds that the proposed tariff revisions are in accordance with the Commission's determinations in Decision 2002-34.


In light of the foregoing, the Commission approves the proposed Teleroute 200 Service rates. The revisions take effect as of the date of this order.

Secretary General
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Date Modified: 2003-10-16

Date modified: