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Ottawa, 26 March 2013

Our reference: 8740-N51-201304740

BY EMAIL

Mr. Michel Gilbert
Director, Regulatory Affairs
NorthernTel Limited Partnership
87 Ontario W.
Montreal, Quebec H2X 1Y8
mgilbert@telebec.com

RE: Tariff Notice 352

Dear Sir,

On 14 March 2013, the Commission received an application by NorthernTel Limited Partnership (NorthernTel) under Tariff Notice 352, in which the company proposed to increase the monthly rate for business primary exchange service (PES), and Individual and Multi Access Lines in Rate Bands E and F1 by 3.251%.

NorthernTel noted that in Regulatory framework for the small incumbent local exchange carriers, Telecom Regulatory Policy CRTC 2009-788, 17 December 2009 (TRP 2009-788), the Commission stated that, for business PES, after reaching the $45.45 rate, the small incumbent local exchange carriers (ILECs) may propose increases to the monthly rate up to the previous year's rate of inflation.

NorthernTel submitted that its proposal complied with TRP 2009-788. It further certified that its application was a Group A filing pursuant to Approval processes for tariff applications and intercarrier agreements, Telecom Information Bulletin CRTC 2010-455, 5 July 2010 (Information Bulletin 2010-455), because it pertained to changes to previously approved rates for existing retail tariffed services where the revised rates comply with the Commission’s price regulation rules.


Commission staff notes that NorthernTel has proposed a percentage increase equal to the rate of inflation for 2011 (i.e. 3.251%) rather than the rate of inflation for the previous year, 2012, as permitted by TRP 2009-788 (i.e. 1.27%).

Therefore, NorthernTel’s application is not consistent with the Commission’s determinations in TRP 2009-788 and, consequently, does not comply with the Commission’s requirements for group A tariff filings.

In light of the above, this file is closed.

NorthernTel may submit a new application addressing the above-mentioned concerns. The application must be presented in the form of a new Tariff Notice.

Yours sincerely,

Original signed by

Michel Murray
Director, Regulatory Implementation
Telecommunications

c. c.: Joseph Cabrera, CRTC (819) 934-6352, joseph.cabrera@crtc.gc.ca

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