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Telecom Order CRTC 2003-489
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Ottawa, 4 December 2003
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TELUS Communications (Québec) Inc.
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Reference: Tariff Notice 343
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Digital network access service
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1.
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The Commission received an application by TELUS Communications (Québec) Inc. (TELUS Québec), dated 12 March 2003, to revise General Tariff item 5.01, Digital Network Services, to introduce Optical Carrier-3 (OC-3) and Optical Carrier-12 (OC-12) Digital Network Access (DNA) services. In addition, TELUS Québec proposed to introduce 2-year and 4-year contract rate options to its existing Digital Signal-3 (DS-3) DNA service.
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2.
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TELUS Québec also requested, pursuant to subsection 25(4) of the Telecommunications Act, (the Act), Commission ratification for charging for this service prior to the date of the Commission's approval of this Tariff Notice.
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3.
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In support of its application, TELUS Québec submitted that the proposed rates for OC-3 service and OC-12 service would recover the associated costs. TELUS Québec indicated that its proposed rates for OC-3 service and OC-12 service were markedly greater than its DS-3 service rates and argued that the cost of offering OC-3 service or OC-12 service was similar to the cost of offering DS-3 service.
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4.
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The Commission received no comments with respect to the application.
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5.
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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, the Commission concluded that TELUS Québec should file cost studies and imputation test results or alternate costing support, whichever is appropriate depending on the type of service, when filing tariff applications to introduce a new service or to propose implicit or explicit rate reductions to an existing service.
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6.
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While the Commission does not consider that the cost of offering OC-3 service or OC-12 service is similar to the cost of offering DS-3 service, it notes that TELUS Québec's rates for OC-3 service and OC-12 service are marginally higher than the rates for the same services approved for TELUS Communications Inc. The Commission also notes that the extent to which the approved rates for OC-3 service and OC-12 service exceed costs is significant.
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7.
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Accordingly, the Commission is satisfied that the proposed rates are set above the associated costs.
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8.
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The Commission approves TELUS Québec's application. The revisions take effect as of the date of this order.
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9.
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With respect to TELUS Québec's request for Commission ratification for this service prior to the date of its approval, subsection 25(4) of the Act states the following:
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Notwithstanding subsection (1), the Commission may ratify the charging of a rate by a Canadian carrier otherwise than in accordance with a tariff approved by the Commission if the Commission is satisfied that the rate:
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(a) was changed because of an error or other circumstances that warrants ratification; or
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(b) was imposed in conformity with the laws of a province before the operations of the carrier were regulated under any Act of Parliament.
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10.
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The Commission notes that TELUS Québec provided no information that would satisfy paragraph 25(4)a of the Act and TELUS Québec does not meet the criterion on the requirements set out in paragraph 25(4)b of the Act.
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11.
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As section 25 does not apply, the Commission denies TELUS Québec's request to ratify charging for this service prior to the date of approval of this application.
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12.
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The Commission notes that TELUS Québec did not submit a price cap classification with the tariff application for the new service. Under the circumstances, the Commission has assigned the OC-3 and OC-12 DNA services to the other capped services basket in accordance with the criteria set out in Implementation of price regulation for Télébec and TELUS Québec, Telecom Decision CRTC 2002-43, 31 July 2002.
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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: 2003-12-04