ARCHIVED - Telecom Commission Letter 8740-C1-200411471
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LetterFile Number: 8740-C1-200411471 Ottawa, 15 March 2005 By fax and E-mail
(705) 272-3015
Nicole Thomas Dear Ms. Thomas: Subject: Tariff Notice 44 - Optical Fibre On 18 October 2004 , the Commission received an application from Cochrane Telecom Services (CTS) under cover of Tariff Notice 44, which proposed the introduction of Optical Fibre service. CTS stated in its application that the rates proposed were based on the currently approved Bell Canada rates for the same service. CTS proposed two sets of rates, a published rate and a discounted rate (Maximum CTS Rate Metre/Annum). In reply to a Commission staff inquiry, CTS indicated that the discounted rate would apply to well- established incumbent local exchange carriers and that all other customers would pay the higher rate. In " Regulatory framework for the small incumbent telephone companies ", Decision 2001-756, 14 December, 2001 , the Commission stated that the fourth basket comprises all other services (i.e., not in baskets one to three) such as special facilities tariffs and competitor access tariffs. Rates for these services will generally be permitted to increase up to any already approved rate for the same service. Tariff applications may be submitted at any time and should reference when and where the Commission approved the rate. For rate increases that go beyond this, an economic study must accompany the application. Commission staff notes that the Optical Fibre service would fall in the fourth basket of services. Commission staff also notes that Bell Canada does not have two sets of rates for the same service and that its rates are structured in a different manner. Accordingly, CTS's proposal does not reflect the Commission directives in Decision 2001-756. Subsection 27(2) of the Telecommunication Act (the Act) states that: No Canadian carrier shall, in relation to the provision of a telecommunications service or the charging of a rate for it, unjustly discriminate or give an undue or unreasonable preference toward any person, including itself, or subject any person to an undue or unreasonable disadvantage. Commission staff considers that CTS has not provided sufficient information to demonstrate that the requirements of Subsection 27(2) of the Act are met. For example, the tariff pages do not explain to whom and based on what criteria the different sets of rates would apply. Consequently, this application is now closed. However, the Commission is open to examining a new application from the company containing the proper information. The application must be filed under cover of a new tariff notice. Sincerely, Original signed by
Scott Hutton c.c.: Lizette Pépin (819) 953-8735 Date Modified: 2005-03-15 |
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