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ARCHIVED - Telecom Commission Letter - 8663-N51-200608979

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Letter

Ottawa, 10 May 2007

File No: 8663-N51-200608979 
            8663-N51-200706856

BY E-MAIL

Ms. Molly Slywchuk
Manager, Regulatory Affairs
NorthernTel Limited Partnership
25 Paget Street, Box 4000
New Liskeard , Ontario
P0J 1P0

regmat@ntl.nt.net

Dear Ms. Slywchuck:

Re:   Facilities-based local competition

On 1 December 2006, the Commission received NorthernTel, Limited Partnership's (NorthernTel's) cost recovery plan associated with NorthernTel's implementation plan for facilities-based local competition in its serving territory for ExaTEL Inc. (ExaTEL) [ NorthernTel's cost recovery plan for ExaTEL].

On 2 March 2007 , the Commission received NorthernTel's implementation plan for facilities-based local competition in its serving territory for Ontera (NorthernTel's plan for Ontera).

On 18 April 2007 , the Commission received NorthernTel's amended cost recovery plan for ExaTEL that includes the costs associated with Ontera's request for local competition in its serving territory (NorthernTel's cost recovery plan for ExaTEL and Ontera).

NorthernTel is requested to provide its responses to the attached questions by 17 May 2007 .  

Sincerely,

'Original signed by S. Bédard '

Suzanne Bédard
Senior Manager, Tariffs
Telecommunications

Attach.

cc:   Martin Brazeau , CRTC, (819) 997-3498
       Mike Cawood, CRTC, (819) 997-3485
       Jessie Gasteiger, ExaTEL, jesse@vianet.ca
       Tracy Cant, Ontera, tracy.cant@ontera.ca
       David Palmer, Bell Aliant and Bell Canada , bell.regulatory@bell.ca
       Willie Grieve, TELUS Communications Company, willie.grieve@telus.com

ATTACHMENT

NorthernTel Limited Partnership cost recovery plan for facilities-based local competition - Interrogatories

 

  1. Refer to NorthernTel (CRTC) 5 February 2007-2 regarding Northerntel's cost recovery plan for ExaTEL.   Update your response to that question to reflect NorthernTel's amended cost recovery plan for ExaTEL and Ontera dated 18 April 2007 .   Note that NothernTel's updated responses to parts b) and d) of that question should be modified to reflect the company's proposed rate increases of $0.99 for residence customers and $1.98 for business customers, and local competition recovery charges of $138.00 per residence NAS and $276.00 per business NAS.
  2. In the table format provided in Appendix 1, fill out the cells marked with an "x" regarding different cost recovery scenarios associated with ExaTEL's and Ontera's requests for facilities-based local competition in NorthernTel's serving territory.   The different cost recovery scenarios should be based on an allocation of costs amongst services on the basis of retail switched exchange service Network Access Service (NAS) with non-residential NAS weighted by a factor of 1.5.   Provide detailed explanation, calculations and assumptions on how the numbers were derived, consistent with the responses to question 1 above

Cost recovery scenarios associated with ExaTEL's and Ontera's requests for facilities-based local competition in NorthernTel's serving territory

 

Scenario 1. (note 1)

Scenario 2. (note 2)

Scenario 3. (note 3)

 

Proposed rate increase

Proposed charge to the competitor

Proposed rate increase

Proposed charge to the competitor

 

Residence

Business

Residence

Business

Residence

Business

Residence

Business

a) Based on a 5-year study period

 

 

 

 

 

 

 

 

associated with Start-up costs

x

x

x

x

x

x

x

x

associated with Ongoing costs

x

x

x

x

x

x

x

x

associated with Total costs

x

x

x

x

x

x

x

x

 

 

 

 

 

 

 

 

 

b) Based on a 10-year study period

 

 

 

 

 

 

 

 

associated with Start-up costs

x

x

x

x

x

x

x

x

associated with Ongoing costs

x

x

x

x

x

x

x

x

associated with Total costs

x

x

x

x

x

x

x

x

 

 

 

 

 

 

 

 

 

c) Based on a 15-year study period

 

 

 

 

 

 

 

 

associated with Start-up costs

x

x

x

x

x

x

x

x

associated with Ongoing costs

x

x

x

x

x

x

x

x

associated with Total costs

x

x

x

x

x

x

x

x

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Notes

 

 

 

 

 

 

 

 

(1) Scenario 1 is where all the causal costs are recovered by rate increase only

(2) Scenario 2 is where all the causal costs are recovered by a charge to the competitor only for each customer moving to the competitor

(3) Scenario 3 is where all the causal costs are recovered by a combination of rate increase and a charge to the competitor for each customer moving to the competitor

The different cost recovery scenarios should be based on an allocation of costs amongst services on the basis of retail switched exchange service Network Access Service (NAS) with non-residential NAS weighted by a factor of 1.5.

Detailed explanation, calculations and assumptions on how the numbers were derived are required.

Date Modified: 2007-05-10

Date modified: