Ottawa, 11 May 2006
File No.: 8740-S22-200407628
Mr. Brian Armstrong
Director of Regulatory Affairs
2121 Saskatchewan Drive , 12 th Floor
Regina , Saskatchewan
document.control @ sasktel.sk.ca
Dear Mr. Armstrong:
Re: Tariff Notice 69A - Ethernet Access Services and Agreement
Commission staff is in the process of reviewing the proposed tariffs and cost studies associated with Tariff Notice 69A (TN 69A), filed on 15 March 2006 . This tariff proposes revisions to SaskTel's Ethernet Access Services and Agreement. In this regard, SaskTel is requested to provide responses to the interrogatories provided in the Attachment, by 19 May 2006 .
Original signed by Y. Davidson
Competition, Costing & Tariffs
cc: Kim Wardle - CRTC (819) 997-4945
Doug Thurston - CRTC (819) 997-4579
SaskTel Tariff Notice 69A
Refer to SaskTel's cost study and proposed tariff pages filed in support of TN 69A, Ethernet Access Services and Agreement, dated 15 March 2006 .
1. Ethernet Access Service
a) Refer to SaskTel's proposed tariff pages for the Ethernet Access Service, item 110.54. In paragraph 14 a), under Section 3, Conditions of Service, SaskTel states that "Early termination charges equal to 100% of the charges for the terminated Ethernet Access Service for the unexpired portion of the Agreement Term will be payable.". Explain why SaskTel is proposing an early termination charge equal to 100% of the unexpired portion of the Agreement Term, given that the ongoing operational expenses from the date of termination would be avoided.
2. Ethernet Transport Service
a) Refer to page 3 of 36 of the cost study. With reference to Table 1: ETS Rate Elements, under the column titled ETS Tariff Component, for Network Path - Provincial 30 Mbps, SaskTel has shown a Monthly Recurring Rate of $490.00. The same $490.00 rate is identified in Table 16 on page 30 of 36 in the line item titled Present Worth of Total Revenues under the column titled $ per 30 Mbps Path per Month. Refer to SaskTel's proposed tariff pages for Ethernet Transport Service, item 610.30. In section 4, Rates, for the service Network Path, Burstable Peak Rate of 30 Mbps, SaskTel shows a Provincial Monthly Rental rate of $440.00. Provide an explanation for the difference between the cost study data and the tariff page data ($490 vs. $440). If a transposition error has occurred amend the tariff pages to correct this inconsistency.
Date Modified: 2006-05-11
b) Refer to page 23 of 36 of the cost study. With reference to Table 9: Summary of Phase II Costs - Service Connections for Ethernet Port and Path, under the section titled Expenses Causal to Demand, provide a detailed breakdown of the Service Provisioning costs. Provide detailed explanations of how each of the cost elements for the service provisioning costs were developed, including a listing of all activities and associated charges (e.g. time estimates, labour costs).
c) Refer to pages 24 to 32 of the cost study. With reference to the Summary of Phase II Cost Tables for the Metro Paths at 10 Mbps, 30 Mbps, 50 Mbps, 70 Mbps, 100 Mbps speeds and the Provincial Paths at 10 Mbps, 30 Mbps, 50 Mbps, 70 Mbps, and 100 Mbps speeds, provide a detailed breakdown of the Capital Causal to Demand costs for each of Outside Plant Equipment, Switching Equipment, Transmission Equipment, Land, Building, and Other, and Other costs. The response should identify all major resource components, service demarcation points and costing assumptions (including life estimates, capacity and average working fill factor values).
d) Refer to page 35 of 36 of the cost study. With reference to Table 21: Summary of Phase II Costs - Ethernet Transport Interface Service Connection Charge, under the section titled Expenses Causal to Demand, provide a detailed breakdown of the Service Provisioning costs. Provide detailed explanations of how each of the cost elements for the service provisioning costs were developed, including a listing of all activities and associated charges (e.g. time estimates, labour costs).