ARCHIVED - Telecom Decision CRTC 2010-579

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Ottawa, 13 August 2010

CityWest Telephone Corporation – Application to modify its monthly subsidy per residential NAS

File number: 8695-C141-201007518


1.      The Commission received an application by CityWest Telephone Corporation (CityWest), dated 30 April 2010, requesting that the Commission approve an annual subsidy amount for CityWest and direct the Central Fund Administration (CFA) to begin to remit the subsidy amount to CityWest, effective 1 January 2010.

2.      In its application, CityWest noted that the banding structure used in Telecom Decision 2006-14 to determine the annual subsidy amounts for the small incumbent local exchange carriers (small ILECs) provided subsidy for wire centres that contain up to 7,999 total network access services (NAS). CityWest also noted that, at that time, it was not entitled to subsidy because it had more than 7,999 total NAS in its wire centre.

3.      CityWest provided a report showing that the total NAS in its wire centre have dropped below the 7,999 total NAS threshold and submitted that it is now entitled to receive subsidy under the small ILEC banding structure.

4.      The Commission received no comments with respect to this application. The public record of this proceeding, which closed on 3 June 2010, is available on the Commission’s website at under “Public Proceedings” or by using the file number provided above.

Commission’s analysis and determinations

5.      In Telecom Decision 2006-14, the Commission established the regulatory framework for the small ILECs, including the final annual subsidy amount that each small ILEC would receive from the National Contribution Fund, for the period 1 January 2006 to 31 December 2009. Payment of the annual subsidy amounts was made interim, effective 1 January 2010.

6.      In Telecom Regulatory Policy 2009-788, the Commission extended the small ILEC regulatory framework until after a decision had been issued with respect to Telecom Notice of Consultation 2010-43.

7.      The Commission notes that, based upon the NAS information provided by CityWest, the company is now entitled to receive subsidy.

8.      Based upon the small ILEC subsidy calculation formula used to determine the annual subsidy amounts and the revised NAS information provided by CityWest, the Commission has calculated that CityWest is entitled to receive $0.142 million in annual subsidy.

9.      Therefore, the Commission approves on an interim basis, effective 1 January 2010, an annual subsidy amount of $0.142 million for CityWest. The Commission directs the CFA to remit to CityWest a monthly subsidy equivalent to 1/12 the annual subsidy amount, effective 1 January 2010.

Secretary General

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