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Telecom Costs Order CRTC 2005-14
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Ottawa, 17 November 2005
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Public Interest Advocacy Centre - Application for costs - Telecom Public Notice CRTC 2005-3
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Reference: 8678-C12-200505729 and 4754-251
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1.
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By letters dated 3 August 2005 and 2 September 2005, the Public Interest Advocacy Centre (PIAC), on behalf of the Consumer Groups, applied for costs with respect to their joint intervention in the proceeding initiated by Proceeding to consider extending the price regulation regime, Telecom Public Notice CRTC 2005-3, 13 May 2005 (the PN 2005-3 proceeding).
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2.
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By letter dated 10 August 2005 TELUS Communications Inc. (TELUS) filed comments in response to PIAC's application for costs. By letter dated 12 August 2005, the Canadian Cable Telecommunications Association (CCTA) filed comments in response to PIAC's application for costs. In addition, by letters dated 5 August 2005 and 13 September 2005 Aliant Telecom Inc. (Aliant Telecom), Bell Canada and Saskatchewan Telecommunications (SaskTel) (collectively, the Companies) filed comments in response to PIAC's application for costs. PIAC did not file reply comments.
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The application
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3.
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The Consumer Groups submitted that they had met the criteria for an award of costs set out in subsection 44(1) of the CRTC Telecommunications Rules of Procedure (the Rules) as they represent a group of subscribers that had an interest in the outcome of the PN 2005-3 proceeding, they had participated responsibly in the PN 2005-3 proceeding, and they had contributed to a better understanding of the issues by the Commission through their participation in the PN 2005-3 proceeding.
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4.
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The Consumer Groups requested that the Commission fix their costs at $6,451.16, consisting entirely of legal fees. The amount requested for legal fees represents 27.1 hours of work for Michael Janigan at a rate of $230 per hour. PIAC's claim included the Federal Goods and Services Tax (GST) on fees less the rebate to which PIAC is entitled in connection with GST. PIAC filed a bill of costs with its application.
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5.
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PIAC made no submission as to the appropriate respondents in this case; however, Public Notice 2005-3 made the Companies, TELUS and MTS Allstream Inc. (MTS Allstream) (collectively, the incumbent local exchange carriers or ILECs) parties to the PN 2005-3 proceeding.
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Answer
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6.
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In answer to the application, the Companies, CCTA and TELUS all stated that they did not object to PIAC's application.
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7.
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TELUS submitted that the ILECs and the competitors should be identified as cost respondents.
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8.
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The Companies submitted that in addition to the ILECs, CCTA was also an appropriate cost respondent.
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9.
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CCTA submitted that the ILECs should be the sole cost respondents.
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Commission analysis and determination
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10.
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The Commission finds that the Consumer Groups have satisfied the criteria for an award of costs set out in subsection 44(1) of the Rules. Specifically, the Commission finds that the Consumer Groups represent a group or class of subscribers that has an interest in the outcome of the proceeding, have participated in a responsible way, and have contributed to a better understanding of the issues by the Commission.
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11.
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The Commission notes that the rates claimed in respect of legal fees are in accordance with the rates set out in the Legal Directorate's Guidelines for the Taxation of Costs, revised as of 15 May 1998. The Commission also finds that the total amount claimed by PIAC was necessarily and reasonably incurred and should be allowed.
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12.
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The Commission is of the view that this is an appropriate case in which to fix the costs and dispense with taxation, in accordance with the streamlined procedure set out in New procedure for Telecom costs awards, Telecom Public Notice CRTC 2002-5, 7 November 2002.
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13.
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The Commission notes that the PN 2005-3 proceeding related to the current price regulation regime for the ILECs. The Commission therefore finds that the appropriate respondents to PIAC's application for costs are the ILECs.
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14.
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The Commission notes that it has, in previous decisions, allocated the responsibility for the payment of costs among respondents on the basis of the respondents' telecommunications operating revenues (TORs), as an indicator of the relative size and interest of the parties involved in the proceeding. The Commission is of the view that, in the present circumstances, it is appropriate to apportion the costs among the respondents in proportion to their TORs, as reported in their most recent audited financial statements. Accordingly, the Commission finds that the responsibility for the payment of costs should be allocated as follows:
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Bell Canada
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50%
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TELUS
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31%
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Aliant Telecom
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7%
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MTS Allstream
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8%
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SaskTel
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4%
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Direction as to costs
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15.
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The Commission approves the application by PIAC for costs with respect to the participation of the Consumer Groups in the PN 2005-3 proceeding.
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16.
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Pursuant to subsection 56(1) of the Telecommunications Act, the Commission fixes the costs to be paid to PIAC at $6,451.16.
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17.
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The Commission directs that the award of costs to PIAC be paid forthwith by the ILECs according to the proportions set out in paragraph 14.
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Secretary General
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This document is available in alternative format upon request, and may also be examined in PDF format or in HTML at the following Internet site: http://www.crtc.gc.ca
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Date Modified: 2005-11-17