Ms. Lourdes Clancy
Manager, Regulatory Matters, Aliant
Aliant Telecom Inc.
P.O. Box 1430
One Brunswick Square - BS5
Saint-John , New Brunswick
E2L 4K2
Dear Ms. Clancy:
Reponses to these interrogatories are to be filed with the Commission, and served on the interested parties to this proceeding, by 10 July 2006 . Responses are to be received, and not merely sent, by this date.
c.c.: B. Noakes, CRTC (819) 997-4429
Components of Price Cap Plans
101 Provide the company's comments on the continued appropriateness of using the chain weighted Gross Domestic Product - Price Index (GDP-PI), as published by Statistics Canada, as the measure of inflation for the next price cap period. Should the company consider that another inflation measure would be more appropriate, provide detailed information, including studies, to support the company's view. Indicate to which basket or sub-basket the inflation factor should apply and how it should operate within the company's proposed pricing constraints.
102 Provide the company's comments on the continued appropriateness of using the 3.5% productivity factor (X-factor). Should the company consider that another productivity level would be more appropriate, provide detailed information, including studies, to support the company's view. Indicate to which basket or sub-basket the productivity factor should apply and how it should operate within the company's proposed pricing constraints. To the extent that the company proposes that the X-factor should not apply to certain baskets and/or sub-baskets, indicate which baskets and provide justification.
103 Under the current price cap regime, an exogenous factor (Z-factor) adjustment is permitted for inclusion in the price cap formula for events or initiatives which satisfy the following conditions:
• they are legislative, judicial or administrative actions which are beyond the control of the company;
• they are addressed specifically to the telecommunications industry; and
• they have a material impact on the company.
a) Comment on the continued appropriateness of including a Z-factor adjustment in the price cap formula for the next price cap period.
b) Should the conditions for inclusion of a Z-factor be modified? If so, provide, with supporting rationale, any proposed modifications.
Services, Baskets and Pricing Constraints
201 Provide, for each residence primary exchange service (e.g., single line, party-line, touch tone, etc.) and for each of the years 2003 to 2006:
a) all rates in effect as at 1 January of each year, as well as rates proposed to be effective 1 June 2007; and
b) the tariff notices/applications resulting in rate revisions. Include a brief description of those applications.
202 Provide the average monthly bill at existing rates for residence individual line subscribers by rate sub-bands, if applicable, and overall by band, broken down into the following components:
a) basic exchange access;
b) mandatory extended flat-rate calling;
c) 9-1-1 service and message relay; and
d) optional services.
203 Provide, with supporting rationale, the company's view on:
a) the continued application of a pricing constraint equal to inflation less the productivity offset (I-X) to ILEC services assigned as Category I Competitor Services, with the exception of Category I services identified as exempted in Appendix 1 to Regulatory framework for second price cap period , Telecom Decision CRTC 2002-34, 30 May 2002; and
b) the application of a pricing constraint equal to I-X to all ILEC services assigned as Category II Competitor Services.
204 On 7 March 2006 , BCE Inc. and Aliant Telecom Inc. jointly announced in a news release [1] their intention to combine Bell Canada 's wireline operations in its regional territories in Ontario and Quebec with Aliant Telecom's wireline operations and Bell Canada 's 63.4 percent interest in the Bell Nordiq Income Fund to form a new consolidated income trust.
a) In the news release, the companies stated that the transaction was expected to close as early as the third quarter of 2006. Provide an updated timeline for the completion of the transaction.
b) Provide a detailed overview of the ownership structure of the new consolidated income trust, including a schematic of the structure and ownership of the companies as they currently exist and the ownership structure to be in place when the restructuring is complete. Indicate the operating entities which will be subject to the proposed price cap regime(s).
c) The news release stated that "[t]he transition to the new consolidated trust will be seamless for all customers of Bell and Aliant. Customers will continue to enjoy the same products and services, including bundles, and all the benefits of the Bell and Aliant brands." Indicate what impact, if any, the creation of the new consolidated trust will have on the existing rates, terms and conditions of the retail services currently offered by Aliant Telecom.
205 In Review of price cap framework , Telecom Public Notice CRTC 2006-5, 9 May 2006, Aliant Telecom and Bell Canada were requested to propose what changes were necessary to the existing price cap regime to reflect the above noted reorganization.
Date Modified: 2006-05-24