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ARCHIVED - Telecom Order CRTC 2004-295

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Telecom Order CRTC 2004-295

  Ottawa, 30 August 2004
 

TELUS Communications Inc. - Call Management Features

  Reference: Tariff Notice 145

1.

The Commission received an application by TELUS Communications Inc. (TCI), dated 30 June 2004, to revise the following General Tariff items:
 
  • item 300, Call Management Services;
 
  • item 301, Voice Mail Service (VMS);
 
  • item 302, Residence Value Bundle; and
 
  • item 303, Residence No Limits Bundle.

2.

TCI stated that the proposed revisions were designed to serve two main purposes: first, to align the pricing of the grandfathered Residence Call Answer Mailbox service in Alberta and the grandfathered Residence Basic Mailbox service in British Columbia (B.C.) with the non-grandfathered Residence Enhanced Voice Mail service; and second, to simplify the pricing of Call Management Services features, the Residence Value Bundle and the Residence No Limits Bundle. TCI noted that the proposed revisions also contained a number of non-material changes. The Commission received a letter dated 15 July 2004, from TCI, outlining corrections to the company's cover letter of 30 June 2004.

3.

The Commission received no comments with respect to the application.

4.

The company's proposed changes to the above-noted General Tariff items are set out below.
 

Call Management Services

5.

TCI proposed to remove the individual feature price discount applied to certain call management features when a customer subscribed to the Residence No Limits Bundle. Specifically, TCI proposed to remove the $1.00 per month discount off the regular tariff rate for Residence No Limits Bundle customers subscribing to:
 
  • Advanced Call Forwarding;
 
  • Anonymous Caller ID (ACId);
 
  • Caller Reveal;
 
  • Do Not DisturbÔ ; and
 
  • Internet Call Director (ICD).

6.

The company submitted that this change was warranted as it was proposing to include in the list of available features for Residence No Limits Bundle customers.

7.

Regarding ICD, TCI proposed to remove the applicability of the $1.00 discount per month off the regular ICD rate for customers subscribing to the Residence No Limits Bundle and to retain the $1.00 discount only for those customers that subscribed to the Residence Value Bundle. In addition, TCI proposed to migrate items 300.2B.15.11 and 300.2B.15.12 and place them under item 300.3, Rates for Call Management Service. The company submitted that these changes would align the rate for ICD with the rates for other features that were subject to bundle contingent pricing.

8.

TCI proposed to include Advanced Call Forwarding, ACId, Caller Reveal, Do Not DisturbÔ and ICD features at no extra charge to Residence No Limits Bundle customers who were paying bundle contingent rates for them.

9.

The company proposed to simplify pricing for ACId by adopting a single monthly rate of $2.00, regardless of whether the feature is subscribed to on a stand-alone basis or with the Residence Value Bundle, and regardless of the customer's Residence Rate Band classification. TCI also proposed to eliminate the one-time service activation charge of $5.00 for the ACId feature when it was purchased on a stand-alone basis, rather than only waiving the service activation charge if a new ACId customer was also subscribed to the Residence Value Bundle or the Residence No Limits Bundle.

10.

TCI proposed to reduce the Residence monthly rate for Call Screen by $3.00 per month from $4.95 to $1.95 in Rate Bands A, B, C and D, and from $5.95 to $2.95 in Rate Bands E, F and G.

11.

TCI proposed to simplify the pricing of Caller Reveal by adopting a single monthly rate of $1.00, regardless of whether the feature was subscribed to on a stand-alone basis or in conjunction with the Residence Value Bundle, and regardless of the customer's Residence Rate Band classification.

12.

TCI proposed to reduce the Residence monthly rate for SMART Ring by $1.00 per month from $5.95 to $4.95 in Rate Bands A, B, C and D; and from $6.95 to $5.95 in Rate Bands E, F and G.

13.

TCI proposed to simplify the pricing of Talking Call Waiting (TCW) by adopting a single monthly rate of $1.00, regardless of whether the feature was subscribed to on a stand-alone basis or with the Residence Value Bundle, and regardless of the customer's Residence Rate Band classification.

14.

TCI proposed to waive the one-time service charge of $10.00 to have a password reset for Residence and Business ACId and Do Not DisturbÔ when customers initiated the password reset via the company's Interactive Voice Response (IVR) system or the company's website. TCI proposed to continue to apply the service charge to customers who initiated the password reset through a TCI customer service representative.
 

Voice Mail Service (VMS)

15.

TCI submitted that in order to facilitate its plan to eventually withdraw the grandfathered Call Answer voice mail platform, it proposed the following revisions to item 301.5, Grandfathered Services, and item 301.3, Rates.

16.

In item 301.5, Grandfathered Services, TCI proposed to:
 
  • increase the monthly rate for Residence Call Answer Mailbox in Alberta from $5.95 to $6.95 to align it with the proposed monthly rates for Enhanced Voice Mail in Alberta and B.C., and the existing combined monthly rate for Residence Basic Mailbox with Call Forward Mailbox in B.C.;
 
  • reduce the Residence voice mail features monthly rates for Outcall Notification and Family/Extension Mailbox in Alberta to $0.00;
 
  • reduce the Residence voice mail features monthly rates for Family/Extension Option, Message Monitor and Paging Outcall in B.C. to $0.00;
 
  • remove Note 5 from item 301.5.1 which, along with corresponding changes to item 303, would result in VMS being included in the monthly rate for the Residence No Limits Bundle in B.C., as it already is.

17.

TCI proposed to include voice mail, at no extra charge, to those Residence No Limits Bundle customers in B.C. who were paying bundle contingent rates for this service.

18.

In item 301.3, Rates, TCI proposed to:
 
  • reduce the monthly rate for Residence Enhanced Voice Mail in Alberta from $7.95 to $6.95 and the monthly rate for Residence Enhanced Voice Mail in B.C. from $5.95 to $4.95;
 
  • remove the service charges for adding Residence Simple Voice Mail, Residence Enhanced Voice Mail, Residence Call Forward Mailbox and Residence Call Forward Mailbox for Multi-lines, for customers in B.C. The company submitted that this would align its service provisions in B.C. with the service provisions in Alberta; and
 
  • waive the one-time service charge of $10.00 to have a voice mail password reset in Alberta and B.C. when customers initiated the password reset via the company's IVR system or the company's website.

19.

TCI submitted that the changes to both grandfathered services and rates described above would facilitate customer migration from the grandfathered Call Answer service to the non-grandfathered Enhanced Voice Mail service with minimum disruption while maintaining equivalent or superior functionality and the same monthly rates.

20.

TCI also proposed to make wording changes to clarify the application of service charges to grandfathered services as well as to correct typographical errors in items 301.3.a, 301.5.1.a and 301.5.1.b.

21.

TCI stated that, in reviewing its procedures regarding password resets, it had discovered that it was the company's practice to provide customers with one free password reset within one month of the initial installation of a voice mailbox in Alberta and B.C. Consequently, TCI proposed to add appropriate wording to the tariff to reflect the company's practice.
  Residence Value Bundle

22.

TCI proposed to expand the list of available features under the Residence Value Bundle by including:
 
  • Advanced Call Forwarding;
 
  • Do Not DisturbÔ ;
 
  • ACId;
 
  • ICD;
 
  • Enhanced Voice Mail;
 
  • Caller Reveal; and
 
  • TCW.

23.

TCI stated that the proposed inclusion of Enhanced Voice Mail as an available feature in the Residence Value Bundle was consistent with the proposed changes to item 301, Voice Mail Service (VMS), and would facilitate the migration of grandfathered Call Answer customers in Alberta and Basic Mailbox customers in B.C. to Enhanced Voice Mail with minimum disruption while maintaining equivalent or superior functionality and the same monthly rates.

24.

TCI submitted that these changes would also support the company's overall objective of simplifying its bundle offerings by removing almost all of the restrictions on features included in the bundles and by having a consistent set of features available under all Residence Value Bundle and Residence No Limits Bundle options.

25.

With regard to Residence Value Bundle pricing, TCI proposed to increase the local exchange carrier (LEC) monthly rate for the "Three (3) features" package from $15.95 to $16.95, bringing the difference between the LEC rate, and the LEC and primary interexchange carrier (PIC) rate to $3.00. The company stated that this change would align pricing in the Residence Value Bundle with pricing in the Residence No Limits Bundle.

26.

TCI proposed a $1.00 per month increase to the price of the "3 for $12.95" package (item 302.2.2) that was grandfathered for Alberta customers who chose Call Answer as part of their package. The company stated that this change was designed to align the pricing of this package with the LEC and PIC rate option under the Residence Value Bundle at $13.95.

27.

TCI proposed to remove the Simple Voice Mail service charge waiver note in item 302.3, Note 4, submitting that it was no longer relevant because of the elimination of the service charge for adding Residence VMS in B.C. The company proposed to reword Note 4 to explain that in B.C., Enhanced Voice Mailbox and Call Forward Mailbox were to be considered as one option for the purpose of item 302, Residence Value Bundle.
 

Residence No Limits Bundle

28.

TCI submitted that, in order to simplify and consolidate customer choices, harmonize pricing between Alberta and B.C., and standardize pricing with the Residence Value Bundle, changes to the Residence No Limits Bundle were necessary. Specifically TCI proposed to:
 
  • expand the list of available features to include Advanced Call Forwarding, ACId, Do Not DisturbT, ICD, and Enhanced Voice Mail, at no additional charge;
 
  • remove the pricing options for the B.C. Residence No Limits Bundle without Simple Voice Mail; and
 
  • reduce the five pricing options in Alberta [LEC ($22.95), LEC and PIC ($19.95), LEC and PIC (Note 5) ($16.95), LEC and PIC and TELUS' internet or TELUS Mobility postpaid cellular services ($21.95), and LEC and PIC and TELUS' internet or postpaid cellular services (f) ($19.95)] to three pricing options applicable to both Alberta and B.C. customers as follows:
   

LEC

$22.95;
   

LEC and PIC

$19.95; and
   

LEC and PIC (Note 5)

$16.95.

29.

TCI proposed to reword Note 1 of item 303, Residence No Limits Bundle, to clarify that in B.C., Simple Voice Mail and Call Forward Mailbox would be considered as one option for the purpose of item 303. Similarly, TCI proposed that Note 2 of item 303 also be reworded to clarify that in B.C., Enhanced Voice Mail and Call Forward Mailbox would be considered as one option for the purpose of item 303. Further, TCI stated that Notes 1 and 2 should also apply to the grandfathered Call Answer and Call Answer Plus features and, like Simple Voice Mail, these features were comprised of either Basic Mailbox or Call Answer Plus Voice Mailbox, and Call Forward Mailbox, and that these combinations were to be considered as one option.

30.

TCI also proposed to limit Residence No Limits Bundle customers to a maximum of 13 features. TCI stated that consequently, customers under the LEC and PIC and TELUS' Internet or postpaid cellular service bundle option at $21.95 would no longer be provided with the option of a fourteenth feature and would pay a reduced price of $19.95. The company proposed to include the bundle contingent features at no extra charge within the Residence No Limits Bundle for these customers. The company noted that, at the time, there were no customers subscribing to more than 13 features, and that it therefore did not anticipate any customer impact as a result of this change.

31.

TCI filed imputation tests in support of its proposed rate changes to Call Management Services, Voice Mail Service (VMS), Residence Value Bundle and Residence No Limits Bundle.

32.

TCI stated that the General Tariff items (Residence portion of items 300 and 301, and entire tariff for items 302 and 303) contained in this application have been classified as part of the residential optional local services sub-baskets within the residential local services in non-high-cost serving areas (non-HCSAs) and residential local services in high-cost serving areas (HCSAs) baskets, pursuant to the determinations in Follow-up to Regulatory framework for second price cap period, Telecom Decision CRTC 2002-34 - Service basket assignment, Telecom Decision CRTC 2003-11, 18 March 2003.

33.

TCI stated that the changes proposed in the application would result in an overall revenue neutral impact for the company's residential optional local services in non-HCSAs sub-basket. TCI also stated that these proposed rate changes would affect the rates that customers paid in the company's residential optional local services in HCSAs sub-basket.

34.

TCI requested approval of the proposed rate changes by 30 July 2004, with an effective date of 15 August 2004. TCI further requested that, in the event the Commission was unable to grant approval by 30 July 2004, the Commission allow a fifteen-day lead-time between the approval date and the effective date for the company to implement the rate changes.
 

Commission's analysis and determination

 

Costing issues

35.

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.

36.

The Commission finds that the proposed rates for Call Management Services, Voice Mail Service (VMS), Residence Value Bundle and Residence No Limits Bundle all pass the imputation test.
 

Compliance with pricing constraints set out in Decision 2002-34

37.

In Regulatory framework for second price cap period, Telecom Decision CRTC 2002-34, 30 May 2002 (Decision 2002-34), the Commission applied a number of constraints to the rates for the residential optional local services in HCSAs and residential optional local services in non-HCSAs sub-baskets, in order to provide customers of those services with price protection. They include:
 
  • a basket constraint for residential local services in non-HCSAs, operating through the service basket limit (SBL), which must be updated annually by the rate of inflation less the productivity offset, and such that the service basket index (SBI) must not exceed the SBL;
 
  • a rate element constraint limiting rate increases to no more than $1.00 per feature per year for residential optional local services in both HCSAs and non-HCSAs; and
 
  • a provision, in order to prevent an incumbent local exchange carrier (ILEC) from decreasing rates in more competitive areas and increasing rates in less competitive areas of the same band, that rates for residential optional local services in both HCSAs and non-HCSAs would not be permitted to be further de-averaged within a band.

38.

The Commission notes that the proposed rate increases do not exceed the $1.00 per feature per year rate element constraint. The Commission finds that the proposed tariff revisions comply with the basket constraint requirement that the SBI not exceed the SBL for the residential local services in non-HCSAs basket.

39.

The Commission also finds that the proposed tariff revisions comply with the Commission's prohibition, set out in Decision 2002-34, of further de-averaging rates for residential optional local services in HCSAs and non-HCSAs within a band.

40.

The Commission is satisfied that the proposed tariff revisions are consistent with the pricing constraints established in Decision 2002-34.

41.

The Commission approves TCI's application. The revisions take effect 15 days from 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: 2004-08-30

Date modified: