ARCHIVED - Telecom Commission Letter - 8740-T69-200506389 - 8740-T69-200506363 - 8740-T69-200506355

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Letter

Ottawa, 13 June 2005

Files: 8740-T69-200506389
           8740-T69-200506363
           8740-T69-200506355

By e-mail

sylvie.courtemanche@telus.com

Sylvie Courtemanche
Director, Regulatory Affairs, TELUS Québec
TELUS Communications Inc.
6, Jules-A. Brillant, R 0622
Rimouski , Quebec  
G5L 7E4  

Dear Ms. Courtemanche:

Re: Tariff Notices 401, 402 and 403 - Price cap model for 2005

On 31 May 2005 , the Commission received applications from TELUS Communications Inc. under cover of Tariff Notices 401, 402 and 403, concerning changes to existing Tariffs affecting the service band indexes for the 2005 price cap model.

In Telecom Decision CRTC 2003-57, Société en commandite Télébec and TELUS Communications (Québec) Inc. 2002 annual price cap filings dated 22 August 2003 (Decision 2003-57), the Commission concluded that TELUS Québec should file cost studies and imputation test results or alternate costing support, whichever was appropriate depending on the type of service, when filing tariff applications to introduce a new service or to propose implicit or explicit rate reductions to an existing service .

Commission staff note that the company has not provided any cost study or imputation test results for the proposed rate reductions that would, according to the company, prove that the proposed rates exceed the associated costs.   However, Commission staff believe that the reasons given by the company to support this assertion do not constitute costing support as set out in Decision 2003-57.  

Commission staff are also of the view that all the rate changes proposed under the 2005 price cap model should be filed in a single tariff notice.  

For all F services, other capped services, the interexchange distance charges for half duplex transmission were increased by 25%, although Tariff item 3.09.03 provides for this increase for duplex transmission only.             

Consequently, these applications are now closed.         

However, the Commission is open to examining a new application under cover of a new tariff notice to remedy the above deficiencies.   Further, to comply with the directives of Telecom Circular CRTC 2005-6, Introduction of a streamlined process for retail tariff filings, 25 April 2005 , Commission staff request that the company file its new application, with the cost study, electronically via Epass.   Also, to facilitate analysis of the calculations in support of the 2005 price cap model, the company should also submit appendices 1, 2 and 3 electronically.                    

Yours sincerely,  

Original signed by 

Scott Hutton
Director General
Competition, Costing and Tariffs
(819) 997-4573

c.c:   Henri Jacques, CRTC, (819) 953-4945
        Lizette Pépin, CRTC, (819) 953-8735

Date Modified: 2005-06-13
Date modified: