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ARCHIVED - Telecom Order CRTC 2004-106

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Telecom Order CRTC 2004-106

  Ottawa, 31 March 2004
 

Saskatchewan Telecommunications

  Reference: Tariff Notice 55
 

Rate increases to business services in HCSAs

1.

The Commission received an application by Saskatchewan Telecommunications (SaskTel), dated 15 January 2004, to revise the following:
 
  • General Tariff - Basic Services
 

- item 110.10, Network Access Service

- item 110.12, Network Access Service

- item 110.28, Multi-line Access Service

- item 110.30, Multi-line Access Service

- item 200.20, Centrex Service II

- item 400.05, Exchange Radio Telephone Service (ERTS)

- item 400.20, Northern Radio Telephone Service (NRTS), and

 
  • General Tariff - Competitive Services
 

- item 550.08, MessageManager

2.

Specifically, SaskTel proposed the following changes:
 
  • increase the rates for Business Network Access Service in high-cost serving areas (HCSAs) from $27.50 to $30.25 and from $31.35 to $34.40;
 
  • increase the rates for Business Multi-line Access service from $43.45 to $47.75 and from $47.00 to $48.75;
 
  • increase the rates for ERTS from $52.25 to $57.40 and increase the rate for options from $13.75 to $15.10;
 
  • increase the rates for NRTS from $27.75 to $30.50;
 
  • increase the rates for monthly and contracted options for Centrex Service II in HCSAs by $3.05, and increase the rates for Centrex Multi-line access from $47.00 to $48.75 to retain the relationship among services in the HCSAs; and
 
  • remove the rate table for access lines that terminate in the central office from the tariff item for MessageManager and replace it with a reference to the tariff item for Network Access Service.

3.

SaskTel submitted that the proposed tariff revisions complied with all of the pricing constraints set out in Regulatory framework for second price cap period, Telecom Decision CRTC 2002-34, 30 May 2002 (Decision 2002-34).

4.

No comments were received with respect to the application.
 

Commission analysis and determination

5.

In Decision 2002-34, the Commission established the price regulation regime that is now applicable to the following incumbent local exchange carriers (ILECs): Aliant Telecom Inc., Bell Canada, MTS Communications Inc., SaskTel and TELUS Communications Inc.

6.

In the decision, the Commission applied a number of constraints to the rates for services in the single and multi-line business local exchange services basket in order to provide customers of those services with price protection.

7.

The Commission notes that, with the exception of Centrex Service II, the services for which SaskTel has proposed rate increases have been assigned to the single and multi-line business local exchange services basket. The pricing constraints which apply to services in this basket include:
 

- a basket constraint, operating through the service basket limit (SBL) for that basket, which must be updated annually by the rate of inflation;

 

- a rate element constraint limiting rate increases for a service to 10% per year; and

 

- a provision, in order to prevent an ILEC from decreasing rates in more competitive areas and increasing rates in less competitive areas of the same band, that rates for business local exchange services should not generally be permitted to be further de-averaged within a band.

8.

The Commission notes that the proposed increases to the monthly rates for Business Network Access Service and Multi-line Access Service, ERTS and NRTS do not exceed 10%. The Commission finds that the proposed tariff revisions comply with the basket constraint requirement that the service basket index (SBI) not exceed the SBL for the single and multi-line business local exchange services basket.

9.

The Commission also finds that the proposed tariff revisions comply with the Commission's prohibition against further de-averaging rates for single and multi-line business local exchange services within a band.

10.

In Decision 2002-34, the Commission imposed no price cap constraints on uncapped services. In that decision, Centrex Services II was classified as an uncapped service.

11.

The Commission notes that SaskTel's proposal to remove the rate table for access lines that terminate in the central office from the tariff item for MessageManager and replace it with a reference to the tariff item for Network Access Service does not impact the rates associated with the service. The Commission further notes that the proposal will result in the revenues for MessageManager access lines being reassigned from the Residential Optional Services sub-baskets in HCSAs and non-high cost serving areas (non-HCSAs) to the Basic residential services sub-basket in HCSAs and non-HCSAs and from uncapped services to the Single-line and multi-line business local exchange services basket. The Commission finds SaskTel's proposal acceptable.

12.

Accordingly, the Commission finds that the proposed tariff revisions are in accordance with the Commission's determination in Decision 2002-34.

13.

In light of the foregoing, the Commission approves the proposed revisions. The revisions take effect as of the date of this order.

Secretary General
  This document is available in alternative format upon request and may also be examined at the following Internet site: http://www.crtc.gc.ca

Date Modified: 2004-03-31

Date modified: