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Telecom Order CRTC 2003-437
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Ottawa, 30 October 2003
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Société en commandite Télébec
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Reference: Tariff Notices 282, 282A, 282B and 8340-T78-0876/00
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Centrex Unique Télébec
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1.
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The Commission received an application by Société en commandite Télébec (Télébec), dated 15 May 2002, and amended on 30 May 2002 and on 16 October 2002, to introduce General Tariff item 2.87, Centrex Unique Télébec, a new business offering for customers subscribing to more than 1000 lines for a minimum contract period of one year. As part of its application, Télébec included a proposed contract template.
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2.
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Télébec proposed a monthly rate of $57.62 per line for any combination of business individual line service, PBX service and Centrex service, as well as a rate of $66.95 for regular analog access telephone lines.
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3.
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The Commission received no comments with respect to the application.
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4.
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In Société en commandite Télébec and TELUS Communications (Québec) Inc. 2002 annual price cap filings, Telecom Decision CRTC 2003-57, 22 August 2003 (Decision 2003-57), the Commission noted that Télébec was required to file imputation test results with all tariff applications regarding the introduction of new services or proposing explicit or implicit price decreases. In Decision 2003-57, the Commission acknowledged however, that it might be difficult for Télébec to file imputation test results and the associated costs for access services 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 (Public Notice 2001-69). The Commission, in Decision 2003-57, considered it appropriate to evaluate Télébec's applications on a case-by-case basis using alternate costing support submitted by the company.
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5.
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The Commission notes that the proposed monthly rate of $57.62 is lower than the approved rates for Télébec's business individual line service, PBX service and Centrex service.
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6.
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The Commission also notes that, in response to an interrogatory, Télébec referred to the costs per band of residential local exchange service that it had filed in the proceeding initiated by Public Notice 2001-69 as alternate costing in support of its application, but did not provide an explanation as to why these costs were reasonable proxies for the costs of business individual line service, PBX service or Centrex service.
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7.
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The Commission considers that Télébec should have provided rationale to explain why the capital costs of residential local exchange service by band could be substituted for the capital costs of business individual line service, PBX service or Centrex service. The Commission also considers that Télébec should have substituted the functional operating expense estimates associated with the provision of the business individual line service, PBX service or Centrex service, as appropriate, for the functional operating expense associated with the provision of residential local exchange service as part of its alternate costing support.
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8.
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Moreover, the Commission reminds Télébec that the rate per band for a service should exceed the associated cost per band of that same service in order to demonstrate that the rate recover the cost.
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9.
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The Commission finds that Télébec did not provide adequate cost evidence to support a decrease to business individual line service, PBX service or Centrex service.
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10.
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In light of the above, the Commission denies Télébec'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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Date Modified: 2003-10-30