ARCHIVED - Letter

Ottawa, 15 September 2010

Our Reference: 8638-C12-201014620
8638-C12-201016882

BY E-MAIL

To Distribution List:

Re:  Telecom Regulatory Policy CRTC 2010-632, Wholesale high-speed access services proceeding, 30 August 2010 - Request to file proposed tariffs for ADSL speed matching services with supporting Phase II cost studies

In Wholesale high-speed access services proceeding, Telecom Regulatory Policy
CRTC 2010-632, 30 August 2010 (Regulatory Policy 2010-632), the Commission directed the major ILECs to file within 90 days of the date of the decision, proposed tariffs with supporting Phase II cost studies that reflect the Commission’s determinations regarding speed matching for aggregate ADSL access service (for new higher speed aggregate ADSL access service options).

In order to expedite the rate review and approval process, the major ILECs are requested to provide responses to the attached interrogatories along with their respective Phase II cost studies.

Phase II cost studies and responses to the interrogatories are to be filed in accordance with the process outlined in Regulatory Policy 2010-632 and are to be received, not merely sent, by the dates indicated.

Yours sincerely,

Original signed by

Mohammed Omar for/Yvan Davidson
Senior Manager, Competitor Services and Costing

cc:  Marc Pilon, marc.pilon@crtc.gc.ca

Interested parties to Regulatory Policy 2010-632

Encl.:   Distribution List
Interrogatories

DISTRIBUTION LIST:

Bell Canada:  bell.regulatory@bell.ca
Bell Aliant Regional Communications:  regulatory@bell.aliant.ca
Saskatchewan Telecommunications: document.control@sasktel.sk.ca
MTS Allstream Inc.: iworkstation@mtsallstream.com
TELUS Communications : regulatory.affairs@telus.com

LIST OF INTERESTED PARTIES

Northwestel Inc.: regulatoryaffairs@nwtel.ca
Télébec: reglementa@telebec.com
Eastlink Cable Systems: Regulatory.Matters@corp.eastlink.ca
Shaw Communications Inc.: Regulatory@sjrb.ca
Cybersurf Corp. : marcel.mercia@cybersurf.com
Quebec Coalition of Internet Service Providers (QCISP): reglementation@xittel.net
Distributel Communications Limited: regulatory@distributel.ca
OneConnect Services Inc.: lisagoetz@globalive.com
Primus Telecommunications Canada Inc.: regulatory@primustel.ca
Cogeco Cable Canada Inc.: telecom.regulatory@cogeco.com
Quebecor Média inc. Quebecor Media Inc.: regaffairs@quebecor.com
Rogers Communications Inc. : ken.engelhart@rci.rogers.com
Mark H. Goldberg & Associates Inc.: crtc@mhgoldberg.com
Ripnet Ltd.: eric@rothschildco.com
The Internet Centre Inc.: gfletcher@incentre.net
Nucleus Inc.:berzins@nucleus.com
McCarthy, Tetreault, Barrister & Solicitors: babramson@mccarthy.ca
Execulink Telecom Inc.: regulatory@execulink.com
Christian S. Tacit, Barrister & Solicitor: ctacit@tacitlaw.com
AGBriggs Consulting Inc.: abriggs@cogeco.ca
Next Dimension Communications Corporation: slavalevin@ethnicchannels.com
Les.Net (1996) Inc. : crtc@les.net
LCB Consulting. Inc.: LBC_Consulting@live.ca
Ministère de la Culture et des Communications: andre.labrie@mcccf.gouv.qc.ca
Open Source Solutions: bob.Allen@abccomm.com
TIA Telecommunications: ghariton@sympatico.ca
Wall Communications Inc.: lefebvre@rogers.com
Fraser Milner Casgrain, LLP: kirsten.embree@fmc-law.com
Bruce   Buchanan : bruce@brucebuchanan.net
Ontario Telecommunications Association: jonathan.holmes@ota.on.ca
Christopher Taylor: cataylor@cyberus.ca
ABC Communications: chris.allen@abccomm.com
Kathleen   Turnsek: regulatory@vianet.ca
The Consumer Groups: piac@piac.ca
Canadian Association of Internet Providers Association canadienne des fournisseurs Internet : tom.copeland@caip.ca
Union des consommateurs: hemond@consommateur.qc.ca
Giganomics Consulting Inc.: blackwell@giganomics.ca
James H Pratt Consulting Inc.: jhpratt@msn.com
EGATE Networks Inc.: crtc@paul.ca
Peace Region Internet Society: pris@pris.ca
Lemay-Yates Associates Inc.: regulatory@lya.com
TekSavvy Solutions Inc. : regulatory@teksavvy.com
View Communications Inc.: dmckeown@viewcom.ca
TBayTel : David.Wilkie@tbaytel.com
Fibernetics Corporation: regulatory@fibernetics.ca
Vaxination Informatique : jfmezei@vaxination.ca
Electronic Box Inc.:  jp@electronicbox.net
TBayTel: stephen.scofich@tbaytel.com 
British Columbia Broadband Association (BCBA): regulatory@bcba.ca
Liam   Buckley: crtcmail@gmail.com
Province of British Columbia: telecom@gov.bc.ca

Attachment

Interrogatories for ILECs

101. For each new higher speed wholesale ADSL speed matching service defined pursuant to Regulatory Policy 2010-632:

a) Provide the schematic diagram(s) showing the service configuration(s), identifying the resources by type of equipment required to provide the service; and

b) For each type of equipment identified in response to part a) above, indicate whether the equipment, is dedicated to the wholesale ADSL service (i.e. used only by this service and not shared with any other services) or shared with other company services (i.e. IP TV, telephone internet, etc.).

102. For each of the new higher speed wholesale ADSL speed matching service cost studies, for each of All Carrier and Competitors-only demand:

a) Provide the annual forecast of in-service demand, including the methodology and assumptions used to estimate the in-service demand (e.g. market size, demand growth, cable carrier market share, and competitor market share) over the study period; and

b) Provide the most current actual in-service demand, specifying the vintage of the data.

103. For each of the new higher speed wholesale ADSL speed matching services, for each of the Capital Causal to Demand categories: Switching, Transmission, Outside Plant and Other, identify the major resource components and provide the following for each:

a) Unit cost (i.e.,Installed First Cost), specifying the vintage of the data;

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

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

d) PWAC value.

104. With reference to the estimation of the Capital Costs Causal to Demand:

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, transmission, and outside plant that were identified in response to interrogatory 103;  If peak period usage is not taken into consideration in the cost study, explain why not; and

b) For each the new higher speed wholesale ADSL speed matching service cost studies:

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 for the purpose of determining the traffic related costs 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.), and explain how they were estimated and specify the peak period.

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.

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

iv. Discuss any changes in capital estimation costing methodologies and assumptions compared to those used in the company’s wholesale ADSL legacy speed service cost studies, with supporting rationale.

105. For each of the new higher speed wholesale ADSL speed matching service cost studies:

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.

106. For each of the new higher speed wholesale ADSL speed matching service cost studies:

a) Provide a breakdown of the Service Provisioning Expenses Causal to Demand into the major sub-activities of these 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 Expenses Causal to Demand that are developed based on unit costs or factors, provide the unit 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

107. For each of the new higher speed wholesale ADSL speed matching service cost studies, with respect to the Other Expenses Causal to Demand, if any, provide a breakdown of the costs by major component in terms of PWAC, along with the methodology and assumptions used to estimate the expenses for each major component.

108. For each of the new higher speed wholesale ADSL speed matching service cost studies, with respect to the Other Capital Causal to Demand, if any, provide a breakdown of the costs by major component in terms of PWAC along with the methodology and assumptions used to estimate the costs for each major component.

109. For each of the new higher speed wholesale ADSL speed matching service cost studies, with respect to the Other Expenses Causal to Service, if any, provide a breakdown of the costs by major component in terms of PWAC along with the methodology and assumptions used to estimate the expenses for each major component.

110. For each of the new higher speed wholesale ADSL speed matching service cost studies, with respect to the Other Capital Causal to Service, if any, provide a breakdown of the costs by major component in terms of PWAC, along with the methodology and assumptions used to estimate the costs for each major component.

111. With respect to the proposed new higher speed wholesale ADSL speed matching service cost studies, provide a discussion of the changes in costing methodology resulting from the introduction of the newly harmonized sales tax (HST) in certain provinces

Date modified:

2010-09-15