Search

ARCHIVED - Telecom Order CRTC 2004-168

This page has been archived on the Web

Information identified as archived on the Web is for reference, research or recordkeeping purposes. Archived Decisions, Notices and Orders (DNOs) remain in effect except to the extent they are amended or reversed by the Commission, a court, or the government. The text of archived information has not been altered or updated after the date of archiving. Changes to DNOs are published as “dashes” to the original DNO number. Web pages that are archived on the Web are not subject to the Government of Canada Web Standards. As per the Communications Policy of the Government of Canada, you can request alternate formats by contacting us.

Archived

This page has been archived on the Web.

 

Telecom Order CRTC 2004-168

  Ottawa, 27 May 2004
 

Aliant Telecom Inc.

  Reference: Aliant Telecom Tariff Notice 127
Bell Canada Tariff Notice 810 (National Services Tariff)
 

2004 Annual price cap filings

1.

In Regulatory framework for second price cap period, Telecom Decision CRTC 2002-34, 30 May 2002 (Decision 2002-34), the Commission established the price cap regime that is now applicable to the following incumbent local exchange carriers (ILECs): Aliant Telecom Inc. (Aliant Telecom), Bell Canada, MTS Communications Inc., Saskatchewan Telecommunications and TELUS Communications Inc.

2.

The Commission received applications by Aliant Telecom and Bell Canada, on behalf of Aliant Telecom, dated 31 March 2004, proposing tariff revisions for Aliant Telecom to meet its 2004 price cap commitment.
 

Aliant Telecom's and Bell Canada's applications

3.

In their applications, Aliant Telecom and Bell Canada proposed revisions to the following tariff items:
 
  • Aliant Telecom, General Tariff,
 

- item 205.2, Business Single-Line Access Service;

 

- item 205.3, Business Multi-Line Access Service;

 

- item 514.3, Inter-Exchange Voice Grade Data, Alarm and Signal Channels;

 

- item 514.4, Inter-provincial Voice Grade Data, Alarm and Signal Channels; and

 
  • Bell Canada, National Services Tariff, item 301, Digital Network Access (DNA service).

4.

In particular, Aliant Telecom proposed the following tariff revisions to services in the single and multi-line business local exchange services basket:
 
  • increase the monthly rate for business single-line access service, Network access line - Flat rate, in New Brunswick by 10% from $33.00 to $36.30;
 
  • increase the monthly rates for non-contracted multi-line access service by approximately 10% in New Brunswick and Newfoundland and Labrador; and
 
  • introduce a new two-year contract option in New Brunswick and Newfoundland and Labrador providing approximately a 5% discount relative to the proposed monthly rates for non-contracted mutli-line access service.

5.

Aliant Telecom submitted that the proposed tariff revisions would ensure that the service basket index (SBI) would not exceed the service basket limit (SBL) for the single and multi-line business local exchange services basket. Aliant Telecom also submitted that the proposed rate increases did not exceed the 10% individual rate element constraint.

6.

Aliant Telecom proposed the following tariff changes to services within the other capped services basket:
 
  • increase the monthly rates for the Inter-exchange mileage-base charge, and the charge per mile charge, by approximately 10%;
 
  • increase the monthly rates for the Inter-provincial mileage-base charge, and the charge per mile charge, by approximately 10%; and
 
  • reduce the DS-1 DNA intra-exchange channel monthly rate by 20%, from $240 to $192.

7.

Aliant Telecom filed an imputation test in support of its proposed rate reductions to DNA service.

8.

Aliant Telecom submitted that the proposed tariff revisions would ensure that the SBI would not exceed the SBL for the other capped services basket. Aliant Telecom also submitted that the proposed rate increases did not exceed the 10% individual rate element constraint.

9.

Aliant Telecom requested that the proposed tariff revisions become effective on 1 June 2004.

10.

Aliant Telecom submitted that the proposed tariff revisions complied with all the pricing constraints set out in Decision 2002-34 and would ensure that it met its price cap obligations for 2004.

11.

The Commission received no comments with respect to these applications.
 

Commission analysis and determination

 

Costing issues

12.

The Commission notes that for a new service or a rate decrease, the proposed rate must be supported by, and satisfy, an imputation test. The Commission also notes that the imputation test is the accepted method, under the current regulatory regime, of determining whether the proposed rates would be anti-competitive.

13.

The Commission finds that the proposed DNA rates pass the imputation test.
 

Compliance with pricing constraints set out in Decision 2002-34

14.

In Decision 2002-34, the Commission applied a number of constraints to the rates for services in the single and multi-line business local exchange services basket and the other capped services basket, in order to provide customers of those services with price protection.

15.

The pricing constraints which apply to services in the single and multi-line business local exchange services basket include:
 
  • a basket constraint, operating through the 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.

16.

The Commission notes that the proposed increases to the monthly rates for business single-line access service and business multi-line access service do not exceed 10%. The Commission finds that the proposed tariff revisions comply with the basket constraint requirement that the SBI not exceed the SBL for the single and multi-line business local exchange services basket.

17.

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.

18.

The pricing constraints which apply to services in the other capped services basket include:
 
  • a basket constraint, operating through the SBL for that basket, which must be updated annually by the rate of inflation less the productivity offset;
 
  • 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.

19.

The Commission notes that the proposed increases to the monthly rates for Inter-exchange voice grade data, alarm and signal channels and Inter-provincial voice grade data, alarm and signal channels do not exceed 10%. The Commission finds that the proposed tariff revisions comply with the basket constraint requirement that the SBI not exceed the SBL for the other capped services basket.

20.

The Commission also finds that the proposed tariff revisions comply with the Commission's prohibition against further de-averaging rates for other capped services within a band.

21.

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

22.

The Commission notes that Aliant Telecom's rates for DNA service are to remain interim pending completion of the proceeding initiated by Competitor Digital Network Access service proceeding, Telecom Public Notice CRTC 2002-4, 9 August 2002.

23.

In light of the foregoing:
 
  • the Commission approves the proposed rates for Business Single-Line Access Service, Business Multi-Line Access Service, Inter-exchange Voice Grade Data, Alarm and Signal Channels and Inter-provincial Voice Grade Data, Alarm and Signal Channels; and
 
  • the Commission approves on an interim basis the proposed rates for DNA service.

24.

The revisions take effect as of 1 June 2004.

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: 2004-05-27

Date modified: