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Ottawa, 9 April 2009

File No.: 8740-B2-200905721

By E-mail

Mr. David Palmer
Director - Regulatory Matters
Bell Canada
160 Elgin Street, 19th Floor
Ottawa ON K2P 2C4
bell.regulatory@bell.ca

RE: Tariff Notice 7189 – Rate Schedule for Primary Exchange (Local) Service – 2009 Annual Price Cap

On 3 April 2009, the Commission received the above-mentioned tariff notice submitted by Bell Canada. The company indicated that its application was filed as a Group A filing under Approval mechanisms for retail and CLEC tariffs, Telecom Decision 2008-74, 21 August 2008 (Decision 2008-74).

Commission staff considers that this application does not meet the definition of Group A filings as indicated in Appendix 1 of Decision 2008-74. In particular, with respect to the proposed changes to the Pay Telephone Basic Access Line Service rates in Rate Bands A1, A2, B3, C2b, F1 and F2, it does not meet part (a) of the definitions of Group A filings in that the revised rates do not meet the Commission's price cap or price regulation rules.

For purposes of efficiency, the Commission will process this application as a Group B filing rather than close the file and require the company to refile it as a new application.

Further, Bell Canada is requested to file its response to the following questions by 20 April 2009.

Yours sincerely,

Original signed by

Suzanne Bédard
Senior Manager, Tariffs
Telecommunications

cc: Martin Brazeau, CRTC, (819) 997-3498, martin.brazeau@crtc.gc.ca

ATTACHMENT

Tariff Notice 7189 - Rate Schedule for Primary Exchange (Local) Service – Interrogatory

Dated 7 May 2008 , Bell Canada filed Tariff Notice (TN) 7129 in which it proposed revisions to its General Tariff in order to modify item 70 - Rate Schedules for Primary Exchange (Local) Service and item 315 - Pay Telephone Basic Access Line Service (PAL). In Telecom Order 2008-242 [1], the Commission approved on an interim basis Bell Canada's proposal for the treatment of PAL service rates in forborne areas, to specify the PAL service rates at 75 percent of the business rates that were in place just prior to forbearance. In Telecom Order 2008-320 [2] , the Commission approved this proposal on a final basis.

  1. Explain why the PAL service rates in Rate Bands A1, A2, B3, C2b, F1 and F5 should not have been and continue to be set at $ 33.22 since 29 August 2008, the date of Telecom Order 2008-242.
  2. Given the methodology for establishing PAL service rates in rate bands for which the Commission has forborne from regulating business local exchange services set out in Telecom Order 2008-242 and confirmed in Telecom Order 2008-320, justify the company's proposal to increase the PAL service rates in Rate Bands A1, A2, B3, C2b, F1 and F5 in TN 7189.
  3. Demonstrate why the Commission should not order Bell Canada to reimburse the PAL service customers in Rate Bands A1, A2, B3, C2b, F1 and F5 the amounts paid over the $33.22 monthly rate since 29 August 2008.

[1] Telecom Order CRTC 2008-242, Bell Aliant Regional Communications, Limited Partnership, Bell Canada, and TELUS Communications Company - Local exchange service and payphone access line service, 29 August 2008

[2] Telecom Order CRTC 2008-320, Bell Aliant Regional Communications, Limited Partnership, Bell Canada, and TELUS Communications Company - Local exchange service and payphone access line service, 24 November 2008

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