ARCHIVED - Telecom Commission Letter - 8652-C12-200312265

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Letter

Ottawa, 13 May 2005

File No. 8652-C12-200312265

BY E-MAIL

To: Attached Distribution List

Re: Modifications to the General Tariff Economic Study Report Guidelines

This letter and its attachment relate to economic study requirements that apply to each large incumbent local exchange carrier (ILEC) with respect to General Tariff (GT) services, including GT service bundles. The manner in which the Commission's current filing requirements for economic studies and the imputation test are to be applied to local voice communications services using Internet Protocol (VoIP services) as a result of Regulatory framework for voice communication services using Internet Protocol, Telecom Decision CRTC 2005-28, 12 May 2005 (Decision 2005-28) are set out below.

The GT Economic Study Report Guidelines attached to this letter reflect housekeeping changes and also reflect, as required, the discussion below.

Commission staff is of the view that the GT Economic Study Report Guidelines apply in the following manner with respect to costs associated with offering in-territory local voice communications services using Internet Protocol (VoIP services) in respect of which a tariff is required by Decision 2005-28, including local VoIP services offered in a GT service bundle.

If access is not part of the ILEC's VoIP service:

a) the associated imputation test must include the costs of all Category 1 Competitor service components by imputing the applicable tariffed rates and must include the Phase II costs for other service components (e.g., costs causal to the VoIP service, VoIP-specific hardware and software, telephone number costs, and all expenses including service order costs as applicable). It is further noted that separate imputation tests must be provided by market segment (e.g., business/residence) and,

b) to the extent the ILEC uses its access facilities to provision the service, the ILEC is to describe the facilities in question, and to explain how the associated costs will be recovered. For example, if the ILEC's VoIP service is provided in conjunction with the ILEC's forborne retail high-speed internet service, the ILEC must explain with supporting rationale how the associated access costs are recovered.

If access is part of the ILEC's VoIP service, the associated imputation test must respond to the requirements identified in paragraph 1 a) above, be provided at the rate band level, define the access component of the service and include all access costs (e.g., the applicable unbundled loop tariffed rates for loop costs, and associated electronics).

If a bundle includes residential VoIP service, the cost of that service is included in the imputation test at the applicable tariffed rate.

Yours sincerely,

Original signed by Yvan Davidson

Yvan Davidson
Senior Manager, Competitor Services & Costing

cc:   Parties to Public Notice 2003-10
       Parties to Public Notice 2004-2
       CRTC Public Examination Room

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