ARCHIVED - Telecom Order CRTC 2012-57

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Ottawa, 27 January 2012

Cogeco Cable Inc. – Introduction of service charge for changes in third-party Internet access service network capacity

File number: Tariff Notice 36

1.        The Commission received an application by Cogeco Cable Inc. (Cogeco), dated 19 December 2011, in which the company proposed revisions to its third-party Internet Access (TPIA) tariff to introduce a service order charge associated with orders to change the network capacity at the aggregated point of interconnection. Cogeco submitted that the service charge provides for the administrative and technical work necessary to change the network capacity required by customers and that the service order activities would be executed within three weeks after the reception of a request. Cogeco noted that the service charge would apply each time a speed modification is requested after the initial setup.

2.        In the same application, Cogeco proposed to introduce monthly rates related to the provision of a 1 Gigabit Ethernet (GE) interface service and a 10 GE interface service. Cogeco noted that the proposed rates are based on a 36-month contract commitment from the customer, where the penalty for cancellation of the service is equal to the monthly payments remaining in the contract.

3.        Cogeco further proposed to revise its diagnostic labour rate. Cogeco submitted that these rates have never been updated since they were approved in Telecom Decision 2004-69.

4.        Cogeco provided cost studies in support of each of its proposed rates.

5.        In Telecom Regulatory Policy 2011-703, the Commission approved a capacity-based billing model with separate access and usage rates for Cogeco, effective 1 February 2012. The Commission also determined that a service charge rate associated with changes to the network capacity, in 100 megabits per second increments, would be applied on a per-order basis, independent of the number of increments, and directed Cogeco to file for approval, by 19 December 2011, tariffs and supporting cost studies for the proposed service charge.

6.        The Commission notes that the capacity service order charge is required to implement the capacity-based billing model on 1 February 2012. The Commission further notes that the close of record for Cogeco’s application is beyond this date.

7.        In light of the above, the Commission approves on an interim basis Cogeco’s proposed service order charge associated with changes to network capacity, effective 1 February 2012.

8.        The Commission will, subsequent to the close of record, dispose of the proposed GE interface services and diagnostic labour rate and issue its final decision on the proposed capacity service order charge rate and terms and conditions, taking into account any comments it may receive.

Secretary General

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