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Ottawa, 21 November 2012

Our file: 8650-A121-201210682


Judes Lussier
President and CEO
AFX Communications
4 Charlevoix Street, RR2
Joliette, Quebec J6E 7Y8

Subject: Compensation for toll-free pay telephone calls - Request for information

Dear Sir:

On 31 August 2012, the Commission received an application from AFX Communications (AFX) in which the company proposed increasing the compensation for toll-free calls payable to competitive pay telephone service providers (CPTSPs) from $0.25 to $0.64 a call.

Commission staff has reviewed the information on the record and determined that additional information is required to complete its assessment of the application. Accordingly, AFX must file its responses to the Commission's request for information attached to this letter by
12 December 2012.

Any other party may file comments with respect to the responses of AFX to the attached request for information by 19 December 2012. AFX will have until 11 January 2013 to file its reply to the comments.

As set out in Broadcasting and Telecom Information Bulletin 2010-961, Procedures for filing confidential information and requesting its disclosure in Commission proceedings, AFX may designate certain information as confidential. The company must provide an abridged version of the document involved, accompanied by a note explaining how the information removed is confidential.

All submissions are to be made in accordance with the Canadian Radio-television and Telecommunications Commission Rules of Practice and Procedure, SOR/2010-277.

Yours sincerely,

Original signed by

Mario Bertrand
Director, Dispute Resolution and Decisions,

cc: Sylvie Labbé, CRTC, 819-953-4945,
Ted Woodhead,
Teresa Griffin-Muir,
Request for information – Compensation for toll-free payphone calls

  1. Indicate in which areas (for example, the Joliette, Victoriaville and Bécancour areas) and in the territories of which incumbent local exchange carriers (for example, the territories of Bell Canada, Bell Aliant and Télébec) AFX provides its services.
  2. Indicate the number of operating pay telephones owned by AFX.
  3. Indicate the total number of calls made from AFX pay telephones a year for the last three years. Also, indicate the total number of toll-free calls made for each of those years.
  4. Indicate what rate is in effect for the local calls made from AFX pay telephones.
  5. With respect to AFX's cost submission:
    1. Indicate how the volume of calls per telephone was established and to what period it applies; 1
    2. For the “line charge” item
      1. indicate how this item was calculated by providing the methodology and the data used; 2
      2. justify the inclusion of this item in the calculation of the compensation for toll-free call costs;
    3. Indicate how the “depreciation” item was calculated by providing the methodology and the data used; 3
    4. Indicate what type of maintenance the “maintenance charges (common)” item refers to by providing a description of the types of charges included in this item; and
    5. For the “Sales, overhead and administrative costs” item
      1. identify the specific amounts related to the three following categories: sales costs, overhead and administrative costs; and
      2. provide a description of the types of costs included in each of the categories listed in i).

[1] For example, the volume of calls per telephone was established using the average volume of calls from all the company's pay telephones during year X. The result was then divided to obtain the volume of calls per month.

[2] For example, the company pays $X per line for a number X of pay telephones and $Y per line for a number Y of pay telephones, for an average of $Z per line.

[3] For example, the value of the telephone equipment when it is purchased is $X, and its useful life is estimated to be Y years.
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