ARCHIVED - Telecom Order CRTC 2004-204

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Telecom Order CRTC 2004-204

  Ottawa, 23 June 2004

TELUS Communications (Québec) Inc.

  Reference: Tariff Notice 371

Untariffed residential service bundles


The Commission received an application by TELUS Communications (Québec) Inc. (TELUS Québec), dated 22 December 2003, to modify General Tariff item 2.27, Residential Bundles, in order to introduce service bundles that include basic residential local exchange service, residential optional services and forborne services (the old service bundles).


In support of its application, TELUS Québec provided cost justification to demonstrate that the proposed rates were compensatory.


TELUS Québec acknowledged that it had been offering the old service bundles without the Commission's approval, but noted that it had ceased offering them to new subscribers as of 20 November 2003. TELUS Québec proposed that the tariff for the old service bundles be grandfathered as of that date. TELUS Québec also proposed to withdraw the old service bundles as of the date of the order approving this tariff notice.


TELUS Québec requested that it be allowed three months after the Commission's approval of Tariff Notice 371, to update its billing statements and to transfer subscribers from the old service bundles to the new service bundles proposed in Tariff Notice 372.


TELUS Québec also requested, pursuant to subsection 25(4) of the Telecommunications Act (the Act), the Commission's ratification for charging rates for the old service bundles in the absence of the Commission's approval.


Finally, TELUS Québec requested that the Commission render its determinations on Tariff Notice 371 and Tariff Notice 372, also filed on 22 December 2003, simultaneously.


The Commission received no comments with respect to the application.

Commission analysis


In Société en commandite Télébec and TELUS Communications (Québec) Inc. 2002 annual price cap filings, Telecom Decision CRTC 2003-57, 22 August 2003, the Commission concluded that TELUS Québec should file cost studies and imputation test results or alternate costing support when filing tariff applications to introduce a new service or to propose implicit or explicit rate reductions to an existing service.


The Commission is satisfied, based on the cost justification provided by TELUS Québec, that the proposed rates for the old service bundles are set above their associated costs.


The Commission notes that, pursuant to subsection 25(1) of the Act, no Canadian carrier shall provide a telecommunications service except in accordance with a tariff filed with and approved by the Commission. The Commission also notes that as TELUS Québec acknowledged, the company has customers who currently subscribe to the old service bundles on an untariffed basis.


The Commission notes TELUS Québec's request to withdraw the tariff for the old service bundles on the date they are approved, and then be allowed three months to update its billing statements and to transfer subscribers from the old service bundles to the new service bundles. The Commission notes that this request would result in some of TELUS Québec's subscribers continuing to have access to the old service bundles on an untariffed basis in violation of subsection 25(1) of the Act. Consequently, the Commission is not prepared to approve TELUS Québec's request to withdraw the old service bundles on the date they are approved.


The Commission considers that it would be appropriate to grandfather the old service bundles during the migration period, so that the old service bundles would not be available to new customers. The Commission further considers that subscribers to the old service bundles should be advised of the proposed changes to their bills prior to their implementation. In order for the company to remain in compliance with subsection 25(1) of the Act, TELUS Québec will only be permitted to withdraw the old service bundles after all subscribers to the old service bundles have been notified of the billing changes and have been migrated to the new service bundles or to other tariffed service offerings.


The Commission notes TELUS Québec's request for Commission ratification of the tariff for the old service bundles prior to the date of its approval. In that regard, subsection 25(4) of the Act states the following:

Notwithstanding subsection (1), the Commission may ratify the charging of a rate by a Canadian carrier otherwise than in accordance with a tariff approved by the Commission if the Commission is satisfied that the rate


(a) was changed because of an error or other circumstances that warrants ratification; or


(b) was imposed in conformity with the laws of a province before the operations of the carrier were regulated under any Act of Parliament.


The Commission notes that TELUS Québec provided no information that would satisfy paragraph 25(4) (a) of the Act and TELUS Québec does not meet the condition set out in paragraph 25(4) (b) of the Act. Since subsection 25(4) of the Act does not apply, the Commission finds that it would not be appropriate to ratify the proposed service bundles prior to the date of their approval.


Finally, the Commission notes that in Residential service bundles, Telecom Order CRTC 2004-205, 23 June 2004, that it rendered its determinations on TELUS Québec Tariff Notice 372.

Commission determination


In light of the foregoing:
  • the Commission approves the proposed tariff for the old service bundles and the grandfathering of these services as of the date of this order;
  • the Commission also approves the withdrawal of these service bundles, no sooner than 3 months from the date of this order and conditional on there being no customers subscribing to the old service bundles; and
  • the Commission denies TELUS Québec's request to ratify charging for the old service bundles prior to the date of approval of this application.
  Secretary General
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Date Modified: 2004-06-23

Date modified: