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Ottawa, 11 September 2012
File No.: 8740-S22-201210658
Mr. Robert Hersche
Director of Regulatory Affairs
2121 Saskatchewan Drive, 12th floor
RE: Tariff Notice 273 - Request for information
On 29 August 2012, the Commission received an application by Saskatchewan Telecommunications (SaskTel), under cover of Tariff Notice 273 (TN 273), in which the company proposed a revision to its General Tariff Basic Services, CRTC 21411, Item 110.12 Network Access Service.
Paragraph 28(1)(a) of the Canadian Radio-television and Telecommunications Commission Rules of Practice and Procedure provides that the Commission may request parties to file information or documents where needed.
SaskTel is requested to provide comprehensive answers, including rationale and any supporting information to the attached questions by 25 September 2012. Consequently, this application along with any associated subsequent revisions will not be approved on an interim basis on the 15th calendar day following receipt. However, the Commission intends to dispose of this application, along with all associated subsequent revisions, within 45 business days of receipt of the filing.
‘Original signed by M. Murray’
Director, Regulatory Implementation
c.c.: Diane Massie, CRTC, (819) 997-4576, email@example.com
In TN 273, SaskTel proposed to increase its Custom Work Connection Charge to $91.89 per person per hour. SaskTel further stated that the proposed rate increase is compliant with the basket and rate element-level price cap constraints, established in Telecom Decision CRTC 2007-27. SaskTel also stated that the Custom Work Service Connection Charge rate element is not uniquely identified in the 2012 Price Cap Model, and that a rate of $0.00 is shown for all SaskTel Service Connections Charges given that they have variable rates and cannot be further broken down into individual rate elements.
Staff has identified that a “Service Connection Charge” element is included in each of the following service baskets identified in the table below, which also identifies the respective applicable pricing constraints:
|Basket||Rate element-level price cap constraints |
(pursuant to Telecom Decision 2007-27)
|Residential Non-High Cost Serving Areas (HCSA) Services basket||0% at rate element level|
|Residential HCSAs Services basket||Lesser of inflation or 5% at rate element level|
|Business Services||Inflation at basket level or 10% rate at element level|
|Other Capped Services basket||Inflation at basket level or 10% rate at element level|
Staff notes that the pricing constraints for the Residential Non-HCSAs Services basket do not allow for a rate increase to any of the services included in that basket.
Please confirm to what extent the proposed increase to the Custom Work Connection Charge will impact the total basket revenue, and rationalize how this proposed increase would be in compliance with the Commission’s pricing constraints for that basket.
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