ARCHIVED - Telecom Order CRTC 2005-5

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Telecom Order CRTC 2005-5

  Ottawa, 5 January 2005

MTS Allstream Inc.

  Reference: Tariff Notice 545

Rate Schedule for Primary Exchange Service


The Commission received an application by MTS Allstream Inc. (MTS Allstream), dated 22 November 2004, to revise General Tariff item 475, Rate Schedule for Primary Exchange Service, proposing the following revisions:
  • increases to the monthly non-contracted multiline business service rates by $1.00 across all Rate Bands or increases ranging between 1.9 percent and 2.1 percent; and
  • increases to the monthly contracted multiline business service rates, which are available only in Rate Bands A, B and C, by $0.75 for 1-year contracts, $0.50 for 3-year contracts and $0.25 for 5-year contracts, or increases ranging between 0.6 percent and 1.7 percent.


MTS Allstream submitted that the proposal complied with the pricing constraints set out in Regulatory framework for second price cap period, Telecom Decision CRTC 2002-34, 30 May 2002 (Decision 2002-34).


The Commission received no comments with respect to the application.

Commission's analysis and determination


In Decision 2002-34, the Commission applied a number of constraints to the rates for services in the Single and Multi-line Business Local Exchange Services basket in order to provide customers of those services with price protection.


The pricing constraints which apply to services in the Single and Multi-line Business Local Exchange Services basket include:
  • a basket constraint, operating through the service basket limit (SBL) for that basket, which must be updated annually by the rate of inflation;
  • a rate element constraint limiting rate increases for a service to 10 percent per year; and
  • a provision, in order to prevent an incumbent local exchange carrier from decreasing rates in more competitive areas and increasing rates in less competitive areas of the same band, that rates for business local exchange services should not generally be permitted to be further de-averaged within a band.


The Commission notes that the proposed increases to the monthly rates for the multi-line business services do not exceed the rate element constraint of 10 percent. The Commission finds that the proposed tariff revisions comply with the basket constraint requirement that the service basket index not exceed the SBL for the Single and Multi-line Business Local Exchange Services basket.


The Commission also finds that the proposed tariff revisions comply with the Commission's prohibition, set out in Decision 2002-34, against further de-averaging of rates for business local exchange services within a band.


Accordingly, the Commission considers that MTS Allstream's proposal is consistent with the pricing constraints established in Decision 2002-34.


The Commission approves MTS Allstream's application. The revisions take effect as of the date of this Order.
  Secretary General
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Date Modified: 2005-01-05

Date modified: