Letter
Ottawa, 10 May 2007
File No: 8663-T8-200617277
8663-T8-200706848
By E-mail
Mr Robert Olenick
Regulatory Analyst
TBayTel
1046 Lithium Drive
Thunder Bay , Ontario
P7B 6G3
rob.olenick@tbaytel.com
Dear Mr. Olenick:
Re: Facilities-based local competition
On 15 September 2006 and 27 March 2007, the Commission received TBayTel's implementation plans for facilities-based local competition in its serving territory for ExaTEL Inc. (ExaTEL) and for Shaw Communications Inc. (Shaw), respectively.
On 5 April 2007, the Commission received comments from Shaw, with respect to the two documents noted above.
The Commission received TBayTel's cost recovery plan for ExaTEL on 5 April 2007 and Shaw's comments on that filing on 16 April 2007.
TBayTel is requested to provide its responses to the attached questions by 1 7 5 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
Jean Brazeau, Shaw communications Inc., regulatory @sjrb.ca
David Palmer, Bell Aliant and Bell Canada, bell.regulatory@bell.ca
Molly Slywchuk, NorthernTel Limited Partnership, regmat@ntl.nt.net
Willie Grieve, TELUS Communications Company,willie.grieve @telus.com
TBayTel plan for facilities-based local competition - Interrogatories
1. a) Confirm if TBayTel has included in its local number portability (LNP) costs as shown in its cost recovery plan for Exatel dated 5 April 2007 any of the following:
(i) wireless to wireless LNP implementation costs, and
(ii) wire line to wireless LNP implementation costs
and if so, provide an estimate of the cos ts associated with each of (i) and (ii).
b) If any of the costs identified above were included in the recovery plan for Exatel, provide updates to each of the following tables: Table 1 - LNP and Local Competition Annual Cash Flows, Table 2 - Determination of Present Worth of Annual Costs, and the tables in paragraphs 30, 31 and 32 of TBayTel's cost recovery plan for ExaTEL by remov ing all of the costs identified in the company's response to part a) above.
c) Provide a detailed explanation of the derivation of each of the annual cash flows for LNP and local competition provided in Table 1 of the cost recovery plan for Exatel. Your explanation should specifically include details as to each of the start-up and ongoing costs incurred by activity, and encompass detailed assumptions and calculations. It should also include details as to purchase price, licensing arrangements, time estimates and labour rates, etc.
2. Taking into consideration the company's response to question 1 above, provide a combined cost recovery plan that would cover both Exatel and Shaw. In regard to this plan,.
a) Amend Table 1, Table 2, and the tables in paragraphs 30, 31 and 32 of the recovery plan for Exatel to reflect the combined costs for ExaTEL and Shaw.
b) Refer to Table 2 as a mended to reflect the combined costs for Exatel and Shaw . Provide a breakdown of the PWACs for each of the start-up and the ongoing costs for each LNP and Local Competition by the same of cost components provided in Table 1.
3. Refer to paragraph 15 of the cost recovery plan for ExaTEL. TBayTel included software upgrade costs to route and transfer local numbers, including software installation, testing and connection to provide for access to an LNP database for Competitive Local Exchange Carriers (CLECs) that do not want to deploy their own.
a) Provide the company's views on whether the start-up and on-going costs for this functionality should be recovered from the CLECs requesting the service, through a tariffed charge for access to the service in question;
b) If your answer to part a) is yes, amend Table 1, Table 2, and the corresponding tables in paragraphs 30, 31 and 32 of the combined cost recovery plan for Exatel and Shaw to exclude these costs.
4. Refer to the Attachment to this letter.
a) Fill out the cells marked with an "x" regarding different cost recovery scenarios reflecting the costs associated with ExaTEL's and Shaws' requests. 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 replies to questions 1, 2, and 3 above.
b) For scenarios 2 and 3, using an example, explain how the charges would apply to competitors, i.e., one-time amount based on NAS loss to competitors, etc.
5. Provide the source and vintage of data, and any assumptions used to derive the annual cash flows and the present worth of annual costs provided by the company.
Cost recovery scenarios associated with ExaTEL's and Shaw's requests for facilities-based local competition in TBayTel's serving territory
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Scenario 1. (note 1)
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Scenario 2. (note 2)
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Scenario 3. (note 3)
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Proposed rate increase
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Proposed charge to the competitor
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Proposed rate increase
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Proposed charge to the competitor
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Residence
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Business
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Residence
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Business
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Residence
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Business
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Residence
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Business
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a) Based on a 5-year study period
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associated with Start-up costs
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x
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x
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x
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x
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x
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x
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x
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x
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associated with Ongoing costs
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x
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x
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x
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x
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x
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x
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x
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x
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associated with Total costs
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x
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x
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x
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x
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x
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x
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x
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x
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b) Based on a 10-year study period
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associated with Start-up costs
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x
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x
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x
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x
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x
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x
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x
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x
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associated with Ongoing costs
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x
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x
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x
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x
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x
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x
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x
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x
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associated with Total costs
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x
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x
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x
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x
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x
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x
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x
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x
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c) Based on a 15-year study period
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associated with Start-up costs
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x
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x
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x
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x
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x
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x
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x
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x
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associated with Ongoing costs
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x
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x
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x
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x
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x
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x
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x
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x
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associated with Total costs
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x
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x
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x
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x
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x
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x
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x
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x
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Notes
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(1) Scenario 1 is where all the causal costs are recovered by rate increase only
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(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
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(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.
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Date Modified: 2007-05-10
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