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Ottawa, 28 June 2012
Our reference: 8740-V3-201205526
Senior Director, Regulatory Affairs
612 St-Jacques Street, 15th floor, South Tower
Montreal, Quebec H3C 4M8
Re: Tariff Notice 44 – Economic evaluation for new service TPIA TGV200
In connection with Vid éotron’s Tariff Notice TN 44, dated 7 May 2012, for the introduction of its Ultimate Speed Internet 200 (TGV200) access service for its third-party Internet access (TPIA) clients, the Commission staff has examined the attached economic evaluation.
To enable the Commission to make a final decision on the proposed tariff pages submitted, Vidéotron is to provide responses to the attached requests for information by 13 July 2012.
Original signed by
Director, Costing and Competitive Services
cc: Mohammed Omar, firstname.lastname@example.org
Abder Rahman El Fatihi, email@example.com
1. Refer to Tables 1, 2 and 3 of the company’s economic evaluation for the monthly access charge associated with the introduction of the Ultimate Speed 200 Mbps for wholesale Third Party Internet Access (TPIA) service filed in support of Tariff Notice 44, dated 07 May 2012 where the company provided a summary of revenues and cost impacts. Further refer to paragraph 2 of the letter “Cette évaluation reprend intégralement le modèle déposé par Vidéotron dans le cadre de l’instance ayant mené à la Politique réglementaire de telecom CRTC 2011-703, tel que modifié par le Conseil dans sa politique” where the company indicated that these revenues and costs were based on the determinations made in Telecom Regulatory Policy (TRP) 2011-703.
Provide revised proposed costs and rate for Ultimate Speed 200 Mbps service and revised Tables 1, 2 and 3 based on the following changes in assumptions:
a) Use 1 May 2012 as the study start date for the economic study (alternatively 1 January 2012 if 1 May 2012 start date can’t be specified in the model).
b) Use up-to-date capital and expense unit costs reflecting the revised study start date.
2. Using the format of tables provided in response to QMI(CRTC)15Sept2010-105 TPIA and QMI(CRTC)15Sept2010-108 TPIA, provide:
a) The unit cost value, the specific vintage, the capital increase factors (CIFs) and the productivity improvement factors (PIFs) used by the company to restate the capital unit cost to the revised study start date for each major capital unit cost used in the economic study. The response should further compare the unit cost values with those used in the December 2010 cost study filed in the proceeding leading to TRP 2011-703, with explanations for any significant difference of +/-10%.
b) The unit cost value, the specific vintage, the expense increase factors (EIFs) and productivity improvement factors (PIFs) used by the company to restate the expense unit cost to the revised study start date for each major expense unit cost used in the economic study. The response should further compare the unit cost values with those used in the December 2010 cost study filed in the proceeding leading to TRP 2011-703, with explanations for any significant difference of +/-10%.
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