ARCHIVED - Letter

Ottawa, 15 September 2010

Our Reference: 8740-T66-201011410

BY E-MAIL

Mr. Hal Reirson
Senior Regulatory Advisor
Telecom Policy & Regulatory Affairs
TELUS Communications Company
21-10020-100 Street NW
Edmonton, Alberta T5J 0N5
regulatory.affairs@telus.com

Dear Mr. Reirson:

Re: Tariff Notice No. 391

In correspondence dated 22 July 2010, Commission staff addressed interrogatories to TELUS Communications Company (TCC) regarding Tariff Notice No. 391 (TN 391) for its Wholesale Internet ADSL Service. To further assist the Commission in its consideration of TN 391, TCC is requested to provide responses to the enclosed additional interrogatories provided in the attachment by 8 October 2010.

In light of the requirement to address these further interrogatories, Commission staff notes that it will not be able to dispose of this file in the third quarter of 2010, but expects to do so in the fourth quarter of 2010.

Yours sincerely,

Original signed by

Mohammed Omar for/Yvan Davidson
Senior Manager, Costing & Competitive Services
Telecommunications

c.c.: Teresa Griffin-Muir, MTS Allstream Inc., iworkstation@mtsallstream.com
Bob Allen, BC Broadband Association, Bob.Allen@abccom.com
Graham Fletcher, The Internet Centre Inc. gfletcher@incentre.net
Rocky Gaudrault, TekSavvy Solutions Inc., regulatory@teksavvy.com
David Buffett, Radiant Communications Corporation, dbuffett@radiant.net
Michael Garbe, Accelerated Connections Inc., mgarbe@dsl4u.ca
Bill Campbell, Skyway West, bcampbell@skywaywest.com
Donald R. Heale, CRTC, (819) 997-2755, donald.heale@crtc.gc.ca

Encl.: Interrogatories

Attachment

Interrogatories for TCC

101. With respect to Table 5(a), TCC’s service charge cost study summary, for each proposed business and residence wholesale Internet ADSL service provide the following:

a. The breakdown of Other Expenses Causal to Service into the major components in dollar value and PWAC value; and

b. The methodology and assumptions used to estimate each major component; and

c. For each component that is based on explicit time estimates, provide the labour unit cost values and vintages, and the methodology and assumptions used in developing the time estimates.

102. For each of TCC’s proposed business and residence wholesale Internet ADSL service cost studies summarized in Table 5:

a. Provide a technical diagram which identifies the resource cost components that are included in the studies; and

b. Identify the major switching and transmission components included in the cost studies and provide for each the following:

i. The unit cost (Installed First Cost) specifying the vintage of the data; and

ii. Explanations regarding the application of retrospective Productivity Improvement Factors (PIFs) and Cost Increase Factors (CIFs) to restate each unit cost from the vintage year to the year 2010, with supporting rationale; and

iii. Average working fill factor, if any, and life estimate; if these values are different from those assumed in previous filed cost studies, provide supporting rationale; and

iv. PWAC value.

103. With reference to the estimation of the Capital Costs Causal to Demand in
Table 5:

a. Explain if and how peak period usage and/or monthly average traffic volumes per end-user have been used to estimate the costs of the resources / equipment in switching and transmission identified in response to interrogatory 102. If peak period usage is not taken into consideration in the cost study, explain why not; and

b. For each of TCC’s proposed business and residence wholesale Internet ADSL service cost studies summarized in Table 5:

i. Provide the per end-user monthly average traffic volumes and peak period traffic levels in the first year of the cost study that were assumed along with the supporting assumptions (e.g. traffic studies) and rationale. The response should identify the type and vintage of information (e.g. if sample used, identify sample size, date of sample, locations selected, etc.), explain how they were estimated and specify the peak period; and

ii. Describe any changes in assumptions made to estimate the per end-user monthly average traffic volumes and peak period traffic levels for the subsequent years of the cost study; and

iii. Provide the per end-user monthly average traffic volumes and/or peak period traffic levels that are currently used for provisioning purposes.

104. For each of TCC’s proposed business and residence wholesale Internet ADSL service cost studies summarized in Table 5:

a. Provide a breakdown of the Maintenance Expenses Causal to Demand into the major sub-activities of maintenance expenses; and

b. For each major sub-activity of Maintenance Expenses Causal to Demand, provide the associated cost methodology and assumptions; and

i. For any major sub-activity that is developed based on explicit time estimates, provide time estimates and labour unit cost values; further provide associated vintages and sources of information; and

ii. For any major sub-activity of Maintenance Expenses Causal to Demand that is developed based on maintenance and repair unit costs or factors, provide the maintenance and repair unit costs or factors specifying the vintage of the data. Further explain, if and how retrospective PIFs and Expense Increase Factors (EIFs) were applied to restate each unit cost from the vintage year to the year 2010, with supporting rationale.

105. For each of TCC’s proposed business and residence wholesale Internet ADSL service cost studies summarized in Table 5:

a. Provide a breakdown of the Service Provisioning Expenses Causal to Demand into the major sub-activities of maintenance expenses; and

b. For each major sub-activity of Service Provisioning Expenses Causal to Demand, provide the associated cost methodology and assumptions; and

i. For any major sub-activity that is developed based on explicit time estimates, provide time estimates and labour unit cost values; further provide associated vintages and sources of information; and

ii. For any major sub-activity of Service Provisioning ExpensesCausal to Demand that is developed based on service provisioning unit costs or factors, provide the service provisioning costs or factors specifying the vintage of the data. Further explain, if and how retrospective PIFs and EIFs were applied to restate each unit cost from the vintage year to the year 2010, with supporting rationale.

106. With respect to TCC’s proposed monthly recurring costs provided in Table 5:

a. Explain whether or not any costs associated with service order and installation activities for the activation of new services are included in the monthly recurring cost studies; and

b. If so, identify the activities that are included in the costs studies, identifying the expense line item that contains the costs that are included in the monthly per unit costs; further, provide TCC’s rationale for its approach with respect to the inclusion of service order activity costs in its monthly recurring cost studies.

107. For the 3-year contract service, provide the in-service of ADSL accesses for each of the ADSL Access Services for each month for a period of six months in the year 2010. The response should also provide the 12-month average churn rate for the 3-year contract service and the average lifespan of the accesses calculations for the six month period. The churn rate is to be calculated by dividing the number of disconnects by the average in-service demand over the 12 month period.

Date modified:

2010-09-15