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Ottawa, 2 July 2013

BY E-MAIL

MTS Inc.
45 O'Connor Street, Suite 1400
Ottawa, ON, Canada, K1P 1A4

Ms. Teresa Griffin-Muir

Subject: 2013 Subsidy Calculations – Request for additional information

By letter dated 30 March 2013, MTS Inc. (MTS) filed its 2013 Total Subsidy Requirement Filing.

Please find attached a request for additional information dealing with this filing. A response is due by no later than 6 August 2013.

Yours sincerely,

Original signed by

Martha King
A/Director, Planning, Research & Reporting Division
Consumer Affairs and Strategic Policy Sector

cc: Robert Thompson, CRTC, (819) 994-2484

Attachment

Request for Additional Information from MTS Inc.

In Obligation to serve and other matters, Telecom Regulatory Policy CRTC 2011-291, 3 May 2011 (Telecom Regulatory Policy 2011-291), the Commission determined that the rate component of the subsidy calculations would increase to the lesser of $30 or the amount required to eliminate subsidy and the increases to the rate components would be phased in over a three year period in equal annual increments.

Footnote 45 of Telecom Regulatory Policy 2011-291 states: "The rate component reflects the weighted average of all HCSA sub-band PES rates in the ILEC's serving territory, by band. For large ILECs, the rate component is updated each year and reflects the average residential PES rates in effect over the calendar year in HCSAs, by band."

According to the 2010 to 2013 Total Subsidy Requirement Filings received from MTS, the MTS rate components used in its subsidy calculations are:

Band E Band F Band G

2010 $24.94 $23.75 $24.56

2011 $25.56 $24.38 $25.27

2012 $26.77 $25.53 $27.03

2013 $27.96 $26.66 $28.59

1) Explain, with supporting calculations, how the rate components used in the 2011 to 2013 subsidy calculations are in accordance with Telecom Regulatory Policy 2011 291. In the event that these calculations are not in accordance with Telecom Regulatory Policy 2011-291, provide, for each of the years 2011, 2012 and 2013, by high-cost band, revised subsidy calculations in accordance with Telecom Regulatory Policy 2011-291 (i.e., the rate components should be increased equally from their 31 May 2011 level to $30 over a three year period with the annual increases occurring on 1 August 2011, 1 June 2012 and 1 June 2013).

2) Provide, by high-cost band, the number of monthly network access services reported to the Central Fund Administrator for the period December 2010 to December 2012.

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