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Telecom Public Notice CRTC 2003-2
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Ottawa, 20 March 2003
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Primary inter-exchange charges review
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Reference: 8661-P11-01/02 and 8661-C12-200303306
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This public notice initiates a proceeding to review the primary inter-exchange carrier processing rates for the incumbent local exchange carriers.
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1.
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In Primus Telecommunications Canada Inc. - Part VII application regarding primary inter-exchange carrier tariffs, Telecom Decision CRTC 2003-19, 20 March 2003 (Decision 2003-19) the Commission approved an application by Primus Telecommunications Canada Inc. requesting a review of the primary inter-exchange (PIC) processing rates for the following incumbent local exchange carriers (ILECs): Bell Canada, MTS Communications Inc. (MTS), Saskatchewan Telecommunications (SaskTel), TELUS Communications Inc. (TCI) and Aliant Telecom Inc. (Aliant Telecom) (collectively, the ILECs).
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2.
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PIC processing rates apply when an alternate provider of long distance service (APLDS) requests that a local exchange carrier (LEC) either establish or change the PIC selection associated with a LEC's customer's access line.
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3.
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The PIC processing tariffs include the following components:
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· PIC processing charge per access line;
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· account set-up charge per PIC processing account;
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· changes to customer account record exchange (CARE) profile per request;
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· PIC/CARE user handbook, each additional copy;
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· billing telephone number detail charge per working telephone number provided;
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· verification record charge per access line; and
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· unauthorized PIC change charge per access line.
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4.
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In Decision 2003-19, the Commission noted that PIC processing rates for the ILECs other than SaskTel had not been reviewed for more than five years, and that these initial cost studies were based on a five-year study period which included the years 1996 to 2000. The Commission noted that the rates for SaskTel were approved by the Commission when SaskTel came under federal jurisdiction in 2000 and were not supported by a Phase II cost study. The Commission found, given the length of time that has elapsed since these costs were reviewed for all the ILECs except SaskTel, it would be reasonable to expect the ILECs to have experienced efficiency improvements which would result in reductions to the costs to provide PIC processing services. The Commission also considered that, with respect to SaskTel, it would be appropriate to establish PIC processing rates based on Phase II costs.
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5.
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The Commission initiates this proceeding to review the costing methodologies, supporting assumptions and related resource inclusions associated with the PIC processing services for each of ILECs.
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6.
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The Commission notes that, based on revenue data provided by Bell Canada in the proceeding leading to Regulatory framework for second price cap period, Telecom Decision CRTC 2002-34, 30 May 2002 (Decision 2002-34) the majority of APLDS' expenditures on PIC processing services were on the PIC processing rate per access line. The Commission therefore considers that the ILECs should be required to file Phase II cost studies for the PIC processing rate per access line.
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7.
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The Commission directs the ILECs to provide, within 45 days of this public notice, revised Phase II cost studies in respect of the PIC processing charge per access line service. The Phase II cost studies are to include a detailed description of the costing methodology and assumptions used, including the underlying resource components (e.g., time estimates per activity and labour unit costs). For Bell Canada, MTS, TCI and Aliant Telecom, the revised cost studies are to include supporting rationale for changes in the methodology, assumptions and cost inclusions as compared to the cost study for the PIC processing charge per access line service submitted in the proceeding leading to Unbundled rates to provide equal access, Telecom Decision CRTC 97-6, 10 April 1997 (Decision 97-6).
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8.
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The Commission notes that the ILECs' rates for PIC processing were made interim effective 1 June 2002, in Decision 2002-34. The Commission directs the ILECs to track the monthly demand and revenues associated with their PIC processing charge per access line service from the date of this public notice.
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9.
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The Commission is of the view that the cost to develop Phase II studies for the remaining PIC processing rate components listed in paragraph 3 above may not be commensurate with the resulting revenues received. The Commission, however, is concerned that these rate components would have also been subject to efficiency improvements.
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10.
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In light of the above, the Commission is of the preliminary view that, in the absence of costing information for the remaining PIC processing charges, it is appropriate for Bell Canada, MTS, TCI, Aliant Telecom and SaskTel to adopt the current rates of the former Maritime Tel & Tel Limited (MTT).
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11.
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In the event that an ILEC disagrees with the Commission's preliminary view on the use of MTT's remaining PIC processing charges, the ILEC is directed to file a revised Phase II cost study for each of these remaining services within 45 days of this public notice. The revised Phase II cost studies are to include a detailed description of the costing methodology and assumptions used, including the underlying resource components (e.g., time estimates per activity and labour unit costs). For Bell Canada, MTS, TCI and Aliant Telecom, the revised cost studies are to include supporting rationale for changes in the methodology, assumptions and cost inclusions as compared to the cost study submitted for the remaining PIC processing services in the proceeding leading to Decision 97-6.
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Procedure
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12.
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Bell Canada, MTS, SaskTel, TCI and Aliant Telecom (collectively, the ILECs) are made parties to this proceeding.
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13.
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Other parties wishing to participate in this proceeding must notify the Commission of their intention to do so, by 27 March 2003. These parties should contactthe Secretary General by mail at CRTC, Ottawa, Ontario, K1A 0N2; by fax at (819) 953-0795 or by email at procedure@crtc.gc.ca. They are to indicate in the notice their email address, where available. If parties do not have access to the Internet, they are to indicate in their notice whether they wish to receive disk versions of hard copy filings. The Commission will issue, as soon as possible after the registration date, a complete list of parties and their mailing address (including their email address, if available), identifying those parties who wish to receive disk versions.
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14.
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Reference to a "party" or "parties" in the process set out below includes both the telephone companies made parties to this proceeding as well as persons who register under paragraph 13 as parties with the Commission.
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15.
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The ILECs are to file with the Commission, serving copies on all parties, the material requested in this public notice by 5 May 2003.
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16.
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Parties may address interrogatories to the ILECs, filing a copy with the Commission, by
4 June 2003.
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17.
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Responses to these interrogatories are to be filed with the Commission and served on all parties by 4 July 2003.
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18.
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Requests by parties for further responses to their interrogatories, specifying in each case why a further response is both relevant and necessary, and requests for public disclosure of information for which confidentiality has been claimed, setting out the reasons for disclosure, must be filed with the Commission and served on the company in question by
14 July 2003.
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19.
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The ILECs may file written responses to requests for further responses to interrogatories and for public disclosure with the Commission, serving a copy on the party making the request, by 24 July 2003.
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20.
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A determination with respect to requests for disclosure and for further responses will be issued as soon as possible. Any information to be provided pursuant to that determination will be required to be filed with the Commission and served on all parties no later than 2 September 2003.
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21.
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Parties may file comments with the Commission, serving a copy on all other parties by 29 September 2003.
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22.
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Parties may file reply comments with the Commission, serving a copy on all other parties by 9 October 2003.
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23.
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Where a document is to be filed or served by a specific date, the document must be actually received, and not merely sent, by that date.
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24.
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Parties can file their submissions electronically or on paper. Submissions longer than five pages should include a summary.
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25.
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Where the submission is filed by electronic means, the line ***End of document*** should be entered following the last paragraph of the document, as an indication that the document has not been damaged during electronic transmission.
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26.
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Please note that only those submissions electronically filed will be available on the Commission's web site and only in the official language and format in which they are submitted.
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27.
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Each paragraph of your submission should be numbered.
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28.
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The Commission also encourages parties to monitor the public record of this proceeding (and/or the Commission's web site) for additional information that they may find useful when preparing their submissions.
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Location of CRTC offices
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29.
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Submissions may be examined or will be made available promptly upon request at the Commission offices during normal business hours:
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Central Building
Les Terrasses de la Chaudière
1 Promenade du Portage, Room G-5
Gatineau, Quebec K1A 0N2
Tel: (819) 997-2429 - TDD: 994-0423
Fax: (819) 994-0218
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Metropolitan Place
99 Wyse Road, Suite 1410
Dartmouth, Nova Scotia B3A 4S5
Tel: (902) 426-7997 - TDD: 426-6997
Fax: (902) 426-2721
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405 de Maisonneuve Blvd. East
2nd Floor, Suite B2300
Montréal, Quebec H2L 4J5
Tel: (514) 283-6607 - TDD: 283-8316
Fax: (514) 283-3689
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55 St. Clair Avenue East, Suite 624
Toronto, Ontario M4T 1M2
Tel: (416) 952-9096
Fax: (416) 954-6343
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Kensington Building
275 Portage Avenue, Suite 1810
Winnipeg, Manitoba R3B 2B3
Tel: (204) 983-6306 - TDD: 983-8274
Fax: (204) 983-6317
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Cornwall Professional Building
2125 - 11th Avenue, Room 103
Regina, Saskatchewan S4P 3X3
Tel: (306) 780-3422
Fax: (306) 780-3319
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10405 Jasper Avenue, Suite 520
Edmonton, Alberta T5J 3N4
Tel: (780) 495-3224
Fax: (780) 495-3214
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530-580 Hornby Street
Vancouver, British Columbia V6C 3B6
Tel: (604) 666-2111 - TDD: 666-0778
Fax: (604) 666-8322
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Secretary General
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This document is available in alternative format upon request, and may also be viewed at the following Internet site: http://www.crtc.gc.ca
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Date Modified: 2003-03-20