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Ottawa, 16 September 2009
File No.: 8740-M59-200912388
BY E-MAIL
Mr. John Maksimow
Tariffs Manager, Regulatory Affairs
MTS Allstream Inc.
333 Main Street
PO Box 6666, MP19C
Winnipeg, Manitoba
R3C 3V6
john.maksimow@mtsallstream.com
RE: Tariff Notice 682 – Voice and Feature Bundle Lite (Residential)
Dear Mr. Maksimow:
On 4 September 2009, the Commission received an application by MTS Allstream Inc. (MTS Allstream), under cover of Tariff Notice (TN) 682, in which the company proposed changes to its General Tariff item 2251 – Voice and Feature Bundle Lite (Residential). The company identified TN 682 as a Group B retail filing.
Commission staff notes that this service contains rates differentiated by market segment that is, (1) a $27.00 monthly rate when the customer selects MTS Allstream as the Primary Inter-exchange Carrier (PIC), and (2) a $30.00 monthly rate when the customer do not select MTS Allstream as the PIC. Commission staff notes that the proposed tariff changes impact the revenues and costs associated with both scenarios. However, in support of its application, the company filed a price floor test which was conducted only for the scenario where the customers select MTS Allstream as the PIC.
At page 10, paragraph 2-7, of MTS Allstream’s Regulatory Economic Studies Manual, it is indicated that:
“The price floor test for a stand-alone GT service is applied on a service-specific basis and for a non-qualifying GT service bundle for the bundle as a whole. In general, the definition of the service is consistent with the tariff definition. However, if the service contains rates differentiated by market segment and/or by technology, then the price floor test is provided for each distinct market segment and/or technology.”
Accordingly, MTS Allstream is requested to file a price floor test for the scenario where the customers do not select MTS Allstream as the PIC.
As a result of this request for further information, this application and any subsequent amendments associated with it, will not be approved on an interim basis on the 15th calendar day after they were received. The Commission however intends to dispose of the application, along with any subsequent amendments associated with it, within 45 business days of the date the application was received in full.
Yours sincerely,
‘Original signed by S. Bédard’
Suzanne Bédard
Senior Manager, Tariffs
Telecommunications
cc: Martin Brazeau, CRTC, (819) 997-3498, martin.brazeau@crtc.gc.ca
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