ARCHIVED - Telecom - Commission Letter - 8678-T69-200415663 - Follow-up to Decision 2004-47, Access to pay telephone service: Application for an exogenous factor to recover the costs of upgrading TELUS Communications Inc.'s telephones with TTY units

Letter

Ottawa, 2 February 2005

 File No. 8678-T69-200415663

 By Fax and E-mail

(418) 722-2154
francine.julien@telus.com

Ms. Francine Julien
Directrice du secteur, Réglementation
TELUS Communications Inc.
6, rue Jules-A.-Brilliant
R 0622
Rimouski , Québec
G5L 7E4

Dear Ms. Julien:

This letter is in response to TELUS Communications Inc's (TCI's) application, filed on 22 December 2004 , requesting approval for an exogenous factor adjustment to recover the costs associated with upgrading its pay telephones with TTY units.   TCI filed is application pursuant to Access to pay telephone service , Telecom Decision CRTC 2004-47, 15 July 2004 .   Attached are interrogatories relating to TCI's request.   TCI is required to file its responses to these interrogatories with the Commission by 16 February 2004.

Where documents are required to be filed or served by a specific date, the documents must be actually received, not merely sent, by that date.

Yours sincerely,

Suzanne Bédard
Senior Manager - Tariffs
Telecommunications

cc:          C. Bailey, CRTC (819) 997-4557

Attach.

ATTACHMENT

1.         Provide the following information with respect to the capital costs for the TTY units:
a)         the per unit cost for outdoor units;
b)         the per unit cost for indoor units;
c)         the per unit installation cost for outdoor units;
d)         the per unit installation cost for indoor units; and
e)         the number of spare units required for maintenance purposes for outdoor units and indoor units.

2. With respect to the proposed maintenance expenses, provide a breakdown of that expense between indoor and outdoor units.   Provide the derivation of each maintenance expense estimate, along with supporting methodology, assumptions and rationale.   Include the source of the data and the methodology used to restate the maintenance expense into current dollars.

3. a) Identify whether or not any operator related expenses have been included in the Phase II cost study, specifying in which category they have been included.

b) If operator expenses have been included, provide a separate estimate of this expense, along with the associated derivation, and supporting methodology, assumptions and rationale.

c) If operator expenses have not been included, indicate how the company plans to recover operator costs associated with TTY calls.

4. With respect to portfolio expenses:

a) provide the company's rationale for including costs associated with this expenses in both the "expenses causal to the service" and "expenses causal to demand" categories; and

b) explain the methodology used to derive this expense in the categories noted above.

5. In the study assumptions included in the company's Economic Study Impact, TCI specified that in order to remove the capital component of the End of Study cost, the "Common Retirement Year" had been set at one year beyond the study.   Provide the following:

 •  The rationale for setting the "Common Retirement Year" one year beyond the study;

•  a revised Table 3.4.1 (summary of cost impacts) based on a study life of 10 years with the "Common Retirement Year" set to the system default value; and

•  the system default value.

6. In Regulatory framework for second price cap period, Telecom Decision CRTC 2002-34, 30 May 2002, the Commission concluded that the criteria for exogenous events set out in Price cap regulation and related issues , Telecom Decision CRTC 97-9, 1 May 1997, modified to measure materiality in relation to the total company, remain appropriate.  

Provide the company's justification as to why its exogenous factor proposal meets the materiality criterion set out in Decision 2002-34.

Date modified: 2005-02-02