ARCHIVED - Telecom Decision CRTC 2004-10

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Telecom Decision CRTC 2004-10

  Ottawa, 19 February 2004

Follow-up to Decision 2003-70: MTS's updated Phase II service improvement plan costs in high-cost serving area bands

  Reference: 8661-M3-200317710
  In this decision, the Commission approves MTS's Band F SIP subsidy of $0.20 per residential network access service. The Commission further directs MTS to reflect this amount in its 2004 subsidy calculations due 31 March 2004.


In MTS Communications Inc. - Reclassification of Band D exchanges to Band F and related rate issues, Telecom Decision CRTC 2003-70, 17 October 2003 (Decision 2003-70), the Commission approved (a) the reclassification of 17 of MTS Communications Inc.'s (MTS) Band D exchanges to Band F and (b) an interim Band F subsidy amount of $4.05 per residential network access service (NAS). The Commission stated that it had not included a Band F service improvement plan (SIP) cost adjustment in the calculation of the interim Band F subsidy amount because MTS had not filed any Band F SIP information with the Commission. The Commission noted, however, that if MTS considered that it required a Band F SIP, then it should file the required information for the Commission's consideration.


On 25 November 2003, MTS filed an application for the Commission's consideration pursuant to Decision 2003-70. MTS's updated SIP cost study included an estimate of its Phase II SIP costs for Band F. MTS's updated cost study indicated that there were no changes to the previously-approved Phase II costs for Bands E and G.


MTS indicated that this filing updated its SIP cost study dated 6 August 2002, as revised on 9 August 2002. MTS estimated its Phase II SIP cost in Band F to be $0.20 per residential NAS. MTS noted that it prepared this Phase II SIP cost study using the same methodology as filed on 6 August 2003.


The Commission received no comments regarding this application.

Commission analysis and determination


The Commission finds MTS's new Phase II SIP cost study supporting the costs and total subsidy requirement calculation for Band F reasonable. Accordingly, the Commission approves the related Band F SIP subsidy of $0.20 per residential NAS.


The Commission notes that subsequent to MTS filing its updated SIP cost study, the Commission issued Final 2003 revenue-percent charge and related matters, Telecom Decision CRTC 2003-84, 19 December 2003. In that decision, the Commission approved a final 2003 MTS Band F subsidy per residential NAS of $3.23, and made MTS's final 2003 subsidy amount for Band F interim for 2004. The subsidy amount of $3.23 did not include SIP costs for Band F. The Commission directs MTS to reflect the Band F SIP subsidy of $0.20 per residential NAS in its 2004 subsidy calculations due 31 March 2004.
  Secretary General
  This document is available in alternative format upon request and may also be examined at the following Internet site:

Date Modified: 2004-02-19

Date modified: