Mr. Willie Grieve
Vice-President, Public Policy and Regulatory Affairs
TELUS Communications Company
21-10020-100 Street NW
Edmonton , AB
T5J 0N5
Dear Mr. Grieve:
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 In Review of price cap framework , Telecom Public Notice CRTC 2006-5, 9 May 2006, TELUS Communications Company was requested to propose what changes were necessary to the existing price cap regime to reflect the fact that the company had assumed all rights, entitlements, liabilities and obligations relating to the provision of telecommunication services in the territory previously served by TELUS Communications (Québec) Inc. (TCQ).
a) Provide the proposed basket and sub-basket structures as well as pricing and individual rate element constraints for the territories previously served by TELUS Communications Inc. and TCQ. Provide the underlying objectives the company intends to achieve with the proposed basket structure. If separate regimes are being proposed for the two operating territories, provide a detailed rationale.
b) For the proposed regime(s), provide a detailed rationale for all baskets and pricing constraints (including rate element or other constraints). Provide any assumptions used to develop the basket structure and pricing constraints, including the expected development of local competition. Where local competition is expected to develop slowly, indicate how the proposed regime(s) will provide customers with the appropriate price protection and comparable service offerings.
c) Provide a mapping of the services between the existing basket structure and the proposed basket structure.
Date Modified: 2006-05-24