ARCHIVED - Telecom Order CRTC 2004-409

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Telecom Order CRTC 2004-409

  Ottawa, 8 December 2004

TELUS Communications Inc.

  Reference: Tariff Notice 4221

Foreign Central Office service


The Commission received an application by TELUS Communications Inc. (TCI), dated 2 November 2004, to revise TCBC General Tariff item 122, Foreign Central Office Service - Voice, and item 122-A, Foreign Central Office Service - Data, in British Columbia (collectively, the FCOS), to increase the existing FCOS monthly rate of $6.78 per quarter mile to $7.35 per quarter mile due to the increasing costs of provisioning and maintaining this service.


TCI submitted that the proposed rate increase did not exceed the 10 percent individual rate element constraint for Other Capped services as directed in Regulatory framework for second price cap period, Telecom Decision CRTC 2002-34, 30 May 2002 (Decision 2002-34). TCI also submitted that under the proposal, the Service Basket Index (SBI) would not exceed the Service Basket Limit (SBL) for the Other Capped services basket.


In Decision 2002-34, the Commission applied a number of constraints to the rates for services in the Other Capped services basket, in order to provide customers of those services with price protection.


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 percent per year; and
  • a provision, in order to prevent an incumbent local exchange carrier from decreasing rates in more competitive areas and increasing rates in less competitive areas of the same band, that rates for Other Capped services should not generally be permitted to be further de-averaged within a band.


The Commission notes that the proposed rate increases do not exceed 10 percent. 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.


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.


The Commission received no comments with respect to the application.


The Commission approves TCI's application. The revisions take effect as of 14 January 2005.
  Secretary General
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Date Modified: 2004-12-08

Date modified: