ARCHIVED - Telecom Order CRTC 2010-919
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Ottawa, 6 December 2010
TELUS Communications Company – Wireless Service Provider Enhanced Provincial 9-1-1 Network Access Service
File number: Tariff Notice 360
Introduction
1. On 1 May 2009, TELUS Communications Company (TCC) filed Tariff Notice 360, requesting approval for its revised General Tariff item 201, Wireless Service Provider Enhanced Provincial 9-1-1 Network Access Service (WSP E9-1-1 Service).[1] TCC filed this application pursuant to certain requirements set out in Telecom Regulatory Policy 2009-40, in which the Commission mandated all incumbent local exchange carriers to file proposed revised WSP E9-1-1 Service tariffs associated with the implementation of Phase II Stage 1 of that service.[2] The Commission approved the application, including TCC’s proposed monthly rate of $0.0044 per wireless telephone number associated with the Phase II Stage 1 element of the service, on an interim basis in Telecom Order 2009-375, effective 3 August 2009.
2. The Commission received comments regarding TCC’s application from Rogers Wireless Inc. (RWI). The public record of this proceeding, which closed on 2 September 2009, is available on the Commission’s website at www.crtc.gc.ca under “Public Proceedings” or by using the file number provided above.
Should the Commission approve the application on a final basis?
3. TCC filed a cost study spanning a three-year study period to support its application.
4. RWI submitted that a study period longer than three years would be more appropriate since the present worth of the end-of-study (EOS) value[3] for
WSP E9-1-1 Service is greater than the present worth of annual costs.[4]
5. TCC submitted that its proposed three-year study period complies with its
18 July 2008 Regulatory Economic Study Manual and is sufficient to capture all significant causal cash flows of the service.
6. The Commission notes that the present worth of the EOS value is included in the TCC study to reflect the remaining service potential beyond the study period for capital expenditures with a life that extends beyond the study period. The Commission further notes that if the study uses an EOS value, the cost per month associated with a capital expenditure will remain the same, regardless of the length of the study period. Accordingly, the Commission finds that the proposed study period of three years is appropriate.
7. The Commission has reviewed TCC’s cost estimates and finds them to be appropriate. The Commission also finds that the associated proposed rate is just and reasonable.
8. In light of the above, the Commission approves on a final basis Tariff Notice 360, effective 3 August 2009.
Secretary General
Related documents
- Telecom Order CRTC 2009-375, 19 June 2009
- Implementation of wireless Phase II E9-1-1 service, Telecom Regulatory Policy CRTC 2009-40, 2 February 2009
Footnotes:
[1] WSP E9-1-1 service provides WSPs with access to the incumbent local exchange carriers’ 9-1-1 networks in order to transport WSPs’ end-customer call display information to the public safety answering points.
[2] Implementation of WSP E9-1-1 Service has been accomplished in two phases: the Phase I element provides call number, cell/site location sector information, and WSP identification, while the Phase II Stage 1 element provides longitudinal and latitudinal information regarding caller location in addition to the information provided in Phase I.
[3] The lives of some of the assets required to provide a service may extend beyond the end of the study period. In these circumstances, the associated capital expenditures have a remaining economic value beyond the end of the study period, and an EOS value is estimated and included in the regulatory economic study to reflect this.
[4] The present worth of annual costs is the present worth of all causal costs (including taxes) typically at the beginning of the study period. It is computed by summing up the present worth of expenses, capital expenditures, gross salvage, removal costs, income tax payable, and other applicable taxes calculated based on the assumption that revenues are equal to the causal costs.
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