ARCHIVED - Telecom - Commission Letter - 8678-T78-200506420

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Letter

Ottawa, 4 October 2005

File number: 8678-T78-200506420

BY E-MAIL

reglementa@telebec.com 

Allen Mercier
Director, Regulatory Research
Télébec
7151 Jean-Talon Street East
Anjou , QC
H1M 3NB 

Dear Mr. Mercier:  

Subject:  Telecom Decision CRTC 2002-43 - Recovery of Local Number Portability (LNP) and Local Competition Costs

On 31 May 2005 , Télébec submitted a filing for an exogenous factor for the recovery of the costs of LNP and local competition.  

Attached please find an interrogatory regarding your filing.

Your answers to this interrogatory must be submitted to the Commission no later than 12 October 2005 . The answers must have been received by the Commission on or before 12 October and not simply sent by that date.

Sincerely,

Original signed by Nora Froese for Suzanne Bédard

Suzanne Bédard
Senior Manager, Tariffs Telecommunications

c.c.: Nora Froese, CRTC (819) 953-5254        
Lizette Pépin, CRTC (819) 953-8735

Interrogatory

•  On page 16 of its filing, Télébec indicated that the rate of the Quebec tax on telecommunications, gas and electricity is 8%.

For 2005, the Quebec government has replaced this tax with the public utilities tax (PUT). This tax is based on two thresholds: 0.7% for the first $750 million of the net value of the telecommunications network, and 10.5% for the net value of the network in excess of $750 million.

In a reply to the comments on the intervention of Xit Telecom, Télébec explained that, because it is associated with Bell Canada, Télébec benefits from only a small portion of the $750 million threshold, i.e. the equivalent of the value of its network versus the value of all Bell and Télébec networks combined, and that the resulting PUT rate for Télébec remains more or less the same, 8%.

•  For the 2005 calendar year, which is the year for which the PUT must be paid, provide the amount of the allocation of the $ 750 million attributed to Télébec, Section 2 of Revenu Québec's Entente relative à la TSP [PUT agreement], form CO-1175.29.E (2005-09).  

•  Provide the total amount of the net value of the telecommunications network belonging to Télébec on 31 December 2004 .

•  In the cost study for the recovery of LNP and local competition costs, Télébec used a five-year period that covered 2005 to 2009. In this study, Télébec included costs incurred before 2005, i.e. from 2002 to 2004.  

•  Describe in detail the adjustments made by Télébec to the costs incurred from 2002 to 2004, presented in 2005 dollars.  

•  Provide the dollar amount for each cost item incurred from 2002 to 2004 included in the total present value of the annual costs.  

Date Modified: 2005-10-04

Date modified: