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Telecom Order CRTC 2003-428
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Ottawa, 23 October 2003
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Northwestel Inc.
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Reference: Tariff Notice 790
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BusinessCents and BusinessCents Plus
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1.
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The Commission received an ex parte application by Northwestel Inc. (Northwestel), dated 8 July 2003, to revise Message Toll Service Tariff - Special Two-Point Services item 309, BusinessCents and BusinessCents Plus, in order to decrease rates for BusinessCents and BusinessCents Plus message toll plans for domestic and U.S. destinations by $0.02 and to decrease rates for selected international destinations along with a simplified rate structure, broken down by global region where appropriate.
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2.
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BusinessCents is an optional message toll savings plan offered to business customers on an account basis. It provides for a distinct set of per minute rates to eligible message toll calls originating from Northwestel's operating area to anywhere in Canada and the U.S. The per minute rates are applicable to all eligible calls placed 24 hours a day, 7 days a week.
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3.
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BusinessCents Plus is an optional message toll savings plan offered to business customers who commit to a minimum spending level. It provides for a distinct set of per minute rates to eligible message toll calls in Canada and the U.S. The per minute rates are applicable for all calls placed 24 hours a day, 7 days a week. In addition, based on their monthly spending, customers are eligible for volume discounts. For customers who sign a contract with the company, additional contract discounts are available.
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4.
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Northwestel noted that it had been over five years since the last rate decrease in its business international toll rates. The company further indicated that it was able to offer the proposed reduction in rates without an increase in supplementary funding as a result of lower termination rates negotiated with southern service providers.
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5.
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The Commission approved on an interim basis the ex parte application in Telecom Order CRTC 2003-316, 7 August 2003.
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6.
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On 2 September 2003, the Government of the Northwest Territories (GNWT) filed comments in support of Northwestel's proposed rate reductions. GNWT noted that even with the proposed rate reductions, Northwestel's rates will remain significantly above the rates available for similar plans in the south, placing northern businesses at a significant disadvantage. GNWT further noted that, in its view, a reduction in these rates is essential, furthering the objectives of the Telecommunications Act.
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7.
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The Commission notes that for a new service or a rate decrease, the proposed rates must satisfy the imputation test. The Commission finds that the proposed rates pass the imputation test. The Commission also notes that the proposed rates will not result in an increase in Northwestel's supplemental funding.
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8.
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The Commission approves on a final basis Northwestel's application.
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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: www.crtc.gc.ca
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