ARCHIVED - Telecom Order CRTC 2005-176

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Telecom Order CRTC 2005-176

  Ottawa, 13 May 2005

Amtelecom Inc.

  Reference: Tariff Notice 55

Residential and business primary exchange services


The Commission received an application by Amtelecom Inc. (Amtelecom), dated 4 April 2005, for approval of rate increases to its residential and business primary exchange services (PES). Amtelecom submitted that the proposed increases were filed in accordance with the provisions of Direct toll and network access costing methodology for small incumbent local exchange carriers - Follow-up to Decision 2001-756, Telecom Decision CRTC 2005-3, 31 January 2005, wherein the Commission determined that the small incumbent local exchange carriers, including Amtelecom, whose 2005 revenues for toll interconnection would fall by more than 35 percent from 2001 levels, could recover that portion of their losses in excess of 35 percent through rate increases to local PES.


Amtelecom proposed the following rate increases:
  • residential individual line service, from $28.75 to $30.75; and
  • business individual line service, from $54.43 to $58.43.


Amtelecom stated that due to a procedural error, it had put its tariffs in place prior to obtaining approval from the Commission. In light of its error, and in consideration that the decline in toll revenue was effective 1 January 2005, Amtelecom requested that the Commission approve the proposed rates on a retroactive basis from 1 March 2005.


The Commission received no comments with respect to the application.


The Commission notes that the Telecommunications Act (the Act) does not allow it to grant retroactive approval to the proposed rates, as Amtelecom requested, unless these rates have previously been approved on an interim basis. However, subsection 25(4) of the Act states:

Notwithstanding subsection (1), the Commission may ratify the charging of a rate by a Canadian carrier otherwise than in accordance with a tariff approved by the Commission if the Commission is satisfied that the rate


(a) was charged because of an error or other circumstance that warrants the ratification; or


(b) was imposed in conformity with the laws of a province before the operations of the carrier were regulated under any Act of Parliament.


In view of Amtelecom's procedural error and the fact that the decline in direct toll revenue went into effect on 1 January 2005, the Commission considers that in this particular instance, it is reasonable to ratify the charging of the revised rates from 1 March 2005.


The Commission approves on an interim basis Amtelecom's application and ratifies the charging of the proposed rates which have been applied since 1 March 2005.


Amtelecom is to issue revised tariff pages forthwith to reflect these changes.
  Secretary General
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Date Modified: 2005-05-13

Date modified: