ARCHIVED - Telecom - Commission Letter - 8000-C12-24/02 - 2004 Inflation Rate (GDP-PI) - Decision 2001-756

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Ottawa, 3 March 2005

File: 8000-C12-24/02

By E-mail

To: Distribution List

Subject: 2004 Inflation Rate (GDP-PI) - Decision 2001-756

In Regulatory framework for the small incumbent telephone companies, Telecom Decision CRTC 2001-756, 14 December 2001, the Commission allowed the small incumbent local exchange carriers (ILECs) to increase rates for residence and business primary exchange service annually, by no more than the rate of inflation in the absence of any exogenous factors.   In that decision, the Commission also determined that the measure of inflation to be used by the small ILECs was the Gross Domestic Product Implicit Chain Price Index (GDP-PI) published by Statistics Canada.

For 2004, the average annual inflation rate over the year, as measured by the quarterly GDP-PI, is 3.2 %. The small ILECs are to use this rate as the inflation component in their annual proposed rate changes which are to be filed with the Commission by 1 April 2005.

Yours sincerely,

Suzanne Bédard
Senior Manager, Tariffs

c.c: Nora Froese, CRTC, (819) 953-5254
       Henri Jacques, CRTC, (819) 953-4945

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Date modified: 2005-03-03

Date modified: