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Telecom Order CRTC 2003-468
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Ottawa, 20 November 2003
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Aliant Telecom Inc.
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Reference: Tariff Notice 104
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Centrex Business Service - Rates and Charges
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1.
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The Commission received an application by Aliant Telecom Inc. (Aliant Telecom), dated 1 August 2003, to revise General Tariff item 780, Centrex Business Service. Aliant Telecom proposed to reduce the rate for Nova Scotia Rate Band A customers who have over 10,000 Centrex Business access lines and who commit to a 5-year contract, to $18.20 per access line per month. Aliant Telecom also proposed to remove from General Tariff item 780.4, references to rate ceilings that no longer apply.
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2.
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Aliant Telecom filed an imputation test in support of its application.
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3.
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The Commission received comments from Allstream Inc. (Allstream), dated 28 August 2003. Reply comments were received from Aliant Telecom on 8 September 2003.
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4.
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Allstream submitted that Aliant Telecom's proposal should be denied. Allstream submitted that Aliant Telecom's application was anti-competitive and merely an extension of Tariff Notices 39/A/B. Allstream noted that the Commission had denied Tariff Notices 39/A/B because it found that Aliant Telecom's proposal constituted further de-averaging within a rate band. Allstream argued that in Tariff Notice 104, Aliant Telecom also proposed to further de-average rates within a rate band. Allstream submitted that Aliant Telecom had not provided sufficient rationale for this proposal.
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5.
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In reply, Aliant Telecom submitted that in this application, it had proposed a price reduction of an existing rate which did not constitute further de-averaging of rates. Aliant Telecom further submitted that the proposal was not anti-competitive because it met the imputation test.
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Commission analysis and determination
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6.
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The Commission notes that in Tariff Notices 39/A/B, Aliant Telecom proposed to introduce a new volume discount band in Nova Scotia Rate Band A for customers with over 12,000 Centrex Business access lines. The proposed 5-year contract rate was $18.20 per line per month. In Telecom Decision CRTC 2003-50, 24 July 2003, the Commission found that the proposal would result in further de-averaging because an additional rate for Centrex lines would become available in Rate Band A. The Commission further notes that in Tariff Notice 104, Aliant Telecom has not proposed to introduce a new rate, but to reduce the existing 5-year contract rate for customers with more than 10,000 Centrex Business access lines from $25.00 to $18.20 per line per month. The Commission finds that changing an existing rate does not constitute further de-averaging of rates.
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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 be supported by and satisfy an imputation test. The Commission further notes that the imputation test is the accepted method, under the current regulatory regime, of determining whether the proposed rates would be anti-competitive. The Commission finds that the proposed rate reduction passes the imputation test.
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8.
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In view of the above, the Commission approves Aliant Telecom's application. The revisions take effect as of the date of this order.
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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: http://www.crtc.gc.ca
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Date Modified: 2003-11-20