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Telecom Order CRTC 2003-69
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Ottawa, 7 February 2003
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Aliant Telecom Inc.
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Reference: Tariff Notice 43
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Centrex - Tariff for health and education customers
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1.
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The Commission received an application by Aliant Telecom Inc. (Aliant Telecom), dated 23 August 2002, to introduce General Tariff item 215.7, Centrex - Special Tariff for Health and Education, in order to implement a reduced Centrex rate for health and education customers.
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2.
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In its application, Aliant Telecom proposed the service be available to all Newfoundland and Labrador Rate Band 'B' customers with a minimum of 2800 lines, who qualify as health and education entities under the Atlantic Provinces Telecommunications Council (APTC) Regional Services Tariff item 501. Aliant Telecom proposed a monthly rate of $20.75 per access line. The service would be available under a three-year contract period, with a one-year renewal period available at the end of the three years.
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3.
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In support of its application, Aliant Telecom provided a costing study to reflect that the proposed rate passed the required imputation test.
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4.
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On 18 September 2002, GT Group Telecom Services Corp. (Group Telecom) filed comments. On 30 September 2002, Aliant Telecom filed reply comments.
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Group Telecom's comments
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5.
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Group Telecom submitted that the Commission should deny Aliant Telecom's application. In Group Telecom's view, Aliant Telecom had filed its proposal for the sole purpose of providing service to Memorial University of Newfoundland. Group Telecom suggested that Aliant Telecom, not Memorial University, would gain a direct benefit by shielding a large portion of the public sector from competition.
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6.
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Group Telecom further submitted that the rate proposed in Aliant Telecom's application was based on suspect costing support. In Group Telecom's view, the costing information was manipulated to support a rate that was needed to win a contract with Memorial University.
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Aliant Telecom's reply comments
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7.
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Aliant Telecom submitted that in a competitive marketplace, all parties should expect innovative, aggressive service offerings and pricing to effectively preserve customers.
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8.
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Aliant Telecom stated that it took strong exception to Group Telecom's allegation that the costing information in support of the proposed rate was manipulated. Aliant Telecom submitted that the proposed rates met the costing and imputation test requirements established by the Commission.
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Commission determination
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9.
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The Commission notes that the proposed service is the same service offering as the existing Newfoundland and Labrador Provincial Centrex Service, except that customers must qualify as health and education entities under the APTC Regional Services Tariff item 501 in order to qualify for the reduced Centrex rate. The Commission also notes that customers who qualify under the proposed tariff would pay a lower rate than other Centrex service customers in the same rate band. Accordingly, the Commission finds that Aliant Telecom's proposal constitutes rate de-averaging within a rate band.
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10.
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The Commission notes that in Regulatory framework for second price cap period, Telecom Decision CRTC 2002-34, 30 May 2002 (Decision 2002-34), the Commission stated that "should an ILEC seek to further de-average rates for Uncapped services, it should provide the rationale in its application." Aliant Telecom did not provide the rationale for its proposal as required under Decision 2002-34.
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11.
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Accordingly, the Commission denies Aliant Telecom'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: 2003-02-07