ARCHIVED - Telecom Order CRTC 2004-97

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Telecom Order CRTC 2004-97

  Ottawa, 24 March 2004

TELUS Communications (Québec) Inc.

  Reference: Tariff Notice 364

Centrex service Special Facilities Tariff


The Commission received an application by TELUS Communications (Québec) Inc. (TELUS Québec), dated 13 November 2003, in order to introduce item 4.02, Centrex service, to its Special Facilities Tariff (SFT). TELUS Québec indicated that it filed this SFT for a Centrex service provided via a different technology than was covered by its General Tariff for Centrex service.


TELUS Québec proposed a monthly per line rate of $30.00 in rate bands A, B and C over a 6-year contract period. TELUS Québec requested that the proposed tariff become effective on 4 June 2003.


In support of its application, TELUS Québec provided a cost study to demonstrate that the proposed rate was compensatory.


The Commission received no comments with respect to the application.

Commission analysis and determination


In Local competition, Telecom Decision CRTC 97-8, 1 May 1997 (Decision 97-8), the Commission concluded that, in order to prevent anti-competitive pricing, it would apply the imputation test for a local exchange service so that it constitutes a floor price for that service in a given rate band.


In Issues related to imputation test methodology - Rebanding decision follow-up, Decision CRTC 2001-737, 29 November 2001 (Decision 2001-737), the Commission modified the imputation test for local exchange services and service bundles that included such local exchange services to require incumbent local exchange carriers (ILECs) to impute per band Phase II loop costs underlying the approved loop rates.


In Commission approves terms and conditions for local exchange and local payphone competition in the territories of TELUS Communications (Québec) Inc. and Télébec ltée, Order CRTC 2001-761, 3 October 2001, the Commission found it appropriate to subject TELUS Québec to the same local competition rules as those in place for the ILECs.


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, depending on the type of service, when filing tariff applications to introduce a new service or to propose implicit or explicit rate reductions to an existing service.


The Commission notes that although TELUS Québec submitted a cost study, the company failed to demonstrate that the proposed monthly rate would exceed the cost of providing the service in each rate band contrary to Decision 97-8. The Commission further notes that in its cost study, TELUS Québec used exchange-specific costs contrary to the Commission's determination in Decision 2001-737.


In Review of regulatory framework, Telecom Decision CRTC 94-19, 16 September 1994, the Commission defined a Type 1 customer-specific arrangement (CSA) as a service that is provided via an SFT that involves service features or technology that differ from those covered by the General Tariff.


The Commission notes that TELUS Québec's General Tariff for Centrex service is not technology specific. Moreover, the Commission notes that Centrex service has been provided by other ILECs over a number of different technologies under their respective General Tariffs. Accordingly, the Commission does not consider that the proposed Centrex service meets the criteria for a Type 1 CSA.


In light of the above, the Commission denies TELUS Québec's application.
  Secretary General
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Date Modified: 2004-03-24

Date modified: