ARCHIVED - Telecom Decision CRTC 2004-75

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Telecom Decision CRTC 2004-75

  Ottawa, 16 November 2004


Bell Canada - Application to increase the capital cost range of its service improvement plan, and to extend the period of its roll-out plan

  Reference: 8638-C12-72/02
  In this Decision, the Commission approves Bell Canada's application to increase the capital cost range of the company's service improvement plan to $131.9 million to $159.9 million, and to extend the period of the company's roll-out plan to 2002-2006.


In Regulatory framework for second price cap period, Telecom Decision CRTC 2002-34, 30 May 2002 (Decision 2002-34), the Commission determined that the actual cost of Bell Canada's service improvement plan (SIP) would vary between $75.3 million and $137.2 million. The Commission approved an initial amount of $75.3 million in up-front capital costs, pending the filing of a revised SIP. The Commission noted that it intended to review Bell Canada's progress in implementing its SIP on a yearly basis, as reported in its tracking plan, to determine whether additional capital and funding were required.


The Commission directed Bell Canada to start a project in a locality if: (a) the maximum average cost per premises was $25,000, using a 100 percent take rate; and (b) at least one customer requested service and was willing to contribute $1,000.


In Bell Canada - Revised service improvement plan, Telecom Decision CRTC 2003-43, 27 June 2003, the Commission approved Bell Canada's revised and updated $127.8 million SIP.


On 31 March 2004, Bell Canada filed its SIP tracking report with the Commission pursuant to Decision 2002-34, serving copies on interested parties in the proceeding leading to that Decision. The Commission issued interrogatories on 17 May 2004, and the company provided its responses on 30 June 2004. The Commission received no comments from interested parties.


In its 31 March 2004 SIP tracking report, Bell Canada indicated that the total projected capital expenditures for its SIP increased from a range of $75.3 million to $137.2 million to a range of $131.9 million to $159.9 million, as a result of revised project estimates and an increase in the number of localities in the SIP from 1,258 in its 18 September 2002 forecast to 2,836 in its 31 March 2004 forecast.


Bell Canada also requested to extend the SIP roll-out period from 2002-2005 to 2002-2006 in order to provide service to 432 new localities in 2006.
  Commission's analysis and determinations


The Commission notes that it approved a roll-out period of 2003-2006 for TELUS Communications Inc. in Follow-up to price cap Decision 2002-34: TELUS' revised service improvement plan, Telecom Decision CRTC 2003-64, 25 September 2003.


The Commission finds that Bell Canada is rolling out its SIP in compliance with the Commission's directions in Decision 2002-34, and that a roll-out extension to 2006 to include the new localities is reasonable.


In light of the foregoing, the Commission approves the increased capital cost range of $131.9 million to $159.9 million and the extension of the roll-out period to 2002-2006.


In response to a Commission interrogatory, Bell Canada provided a table setting out the roll-out plan for its proposed capital expenditures for 2002-2006. The Commission notes that a major portion of the SIP roll-out is scheduled for 2004 and 2005, which were the last two years of the previously approved roll-out period. The Commission expects Bell Canada to meet its forecasted roll-out schedule for those two years.
  Secretary General
  This document is available in alternative format upon request and may also be examined at the following Internet site:

Date Modified: 2004-11-16

Date modified: