ARCHIVED - Telecom Order CRTC 2003-438

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Telecom Order CRTC 2003-438

  Ottawa, 30 October 2003

Mornington Communications Co-operative Limited

  Reference: Tariff Notices 30 and 30A

Internet Access Service


The Commission received an application by Mornington Communications Co-operative Limited (Mornington), dated 21 August 2003 and amended on 23 September 2003, to remove Internet Access Service from section 920 of its General Tariff.


In Forbearance from retail Internet services, Telecom Order CRTC 99-592, 25 June 1999 (Order 99-592), the Commission determined that the provision of retail Internet services (IS) was subject to sufficient competition to protect the interests of users. In Order 99-592, the Commission also determined that it would be appropriate to forbear from regulating retail IS provided that a company separates retail IS assets, revenues and expenses from its rate base and shortfall subsidy calculation.


In Regulatory framework for the small incumbent telephone companies, Decision CRTC 2001-756, 14 December 2001 (Decision 2001-756), the Commission established a new regulatory framework that focused on prices rather than earnings.


Moreover, in Decision 2001-756, the Commission implemented the national total subsidy requirements calculation methodology, based on the costs of providing local service in high-cost serving areas, replacing the former rate base and subsidy calculation.


The Commission notes that the companies subject to Decision 2001-756 no longer calculate their shortfall subsidy on a rate of return basis rendering moot the requirement that a company demonstrate accounting separation for its retail is to qualify for forbearance. In light of the above, the Commission considers it appropriate to forbear from regulating Mornington's retail IS service.


The Commission received no comments with respect to the application.


The Commission approves Mornington's application. The revisions take effect as of the date of this order.


Mornington is to issue a revised tariff page forthwith to reflect this change.
  Secretary General
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Date Modified: 2003-10-30

Date modified: