ARCHIVED - Telecom Order CRTC 2004-224

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Telecom Order CRTC 2004-224

  Ottawa, 9 July 2004

NorthernTel Limited Partnership

  Reference: Tariff Notice 206

Residential and business primary exchange services


The Commission received an application by NorthernTel Limited Partnership (NorthernTel), dated 6 May 2004, to revise item 5 of section N100, Rate Schedules for Primary Exchange (Local) Service; items 2, 5 and 8 of section N210, Centrex; items 7 and 9 of section N240, Centrex II Service; item 5 of section N490, Touch-Tone; and item 3 of section N900, Digital Network Services, of its General Tariff in order to increase its monthly rates as follows:
  • residential individual line, from $26.43 to $30.13;
  • residential line Touch-Tone, from $2.10 to $2.15;
  • business individual line, from $51.98 to $53.58;
  • business line Touch-Tone, from $3.15 to $3.25;
  • business multi access line, rate groups 3 to 6, from $51.98 to $53.58, rate group 7, from $54.73 to $54.78;
  • business individual line with equivalent service, from $54.63 to $56.23;
  • business multi access line with equivalent service, rate groups 3 to 6, from $54.63 to $56.23, rate group 7 from $57.38 to $57.43.
  • Centrex service, 2 to 99 locals, from $56.73 to $58.48 and with equivalent service, from $59.38 to $61.13;
  • Centrex service, above 100 locals, with a 5 year contract, from $37.98 to $39.13;
  • Centrex value package, 2 to 15 locals, from $56.73 to $58.48;
  • Centrex II Basic Business Bundle, from $68.18 to $70.28;
  • Centrex II plan A Fundamental, from $70.88 to $73.08;
  • Centrex II plan B Fundamental, from $78.18 to $80.58;
  • Centrex II above 100 locals, 5 year contract, from $37.58 to $39.13 and with equivalent service, from $40.23 to $41.78; and
  • Switch 56 data service, from $54.68 to $56.38.


NorthernTel's proposed revisions to residential and business primary exchange services (PES) also reflect an exogenous adjustment related to a reduction in the revenue-percentage charge associated with the National Contribution Fund (NCF).


Further, with respect to NorthernTel's residential PES, the company proposed an increase of $2.90, as the Commission found appropriate in Amtelecom Inc.'s request to review and vary Decision 2001-756 and Order 2002-230, Telecom Decision CRTC 2004-9, 19 February 2004 (Decision 2004-9). The Commission varied Regulatory framework for the small incumbent telephone companies, Decision CRTC 2001-756, 14 December 2001 (Decision 2001-756), to allow the recovery of the difference between $22.75 and the residential PES rate when Decision 2001-7566 was issued excluding service improvement plan related rate increases.


The Commission received no comments with respect to the application.


In Decision 2001-756, the Commission grouped services into four separate service baskets each with their own pricing constraints. The Commission assigned residential PES to the first service basket, business PES, including both single and multi-line, to the second service basket and other optional services, including Centrex service, to the fourth service basket.


In Decision 2001-756, the Commission also determined that:
  • in the absence of any exogenous factors, the rates for residential and business PES would be permitted to increase each year by no more than inflation;
  • the small incumbent local exchange carriers required to contribute to the NCF would be able to recover the revenue-percentage charge on capped services through an exogenous adjustment; and
  • the rates for services in the fourth service basket, which includes Centrex and Digital Network services, would generally be permitted to increase up to any already approved rate for the same service.


The Commission notes that NorthernTel is a required contributor to the NCF.


The Commission notes that the rates proposed by NorthernTel for Centrex and Digital Network services are equal to or less than rates previously approved for similar services provided by other companies.


The Commission finds that NorthernTel's proposed rate revisions are in accordance with the Commission's determinations in Decision 2001-756 and Decision 2004-9.


The Commission approves NorthernTel's application. The revisions take effect as of the date of this order.


NorthernTel is to issue revised tariff pages forthwith to reflect these changes.
  Secretary General
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Date Modified: 2004-07-09

Date modified: