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Ottawa, July 22, 2013

Our reference: 8740-N1-201211838


Mr. Dallas Yeulett
Senior Manager, Regulatory Compliance
Northwestel Inc.
P.O. Box 2727
Whitehorse, Yukon Y1A 4Y4

RE: Northwestel Inc. – Tariff Notices 889 and 889A

Dear Sir:

The Commission received an application by Northwestel Inc. (Northwestel) under Tariff Notice 889, in which the company proposed modifications to its Private Wire Services tariff item 1118 – Ethernet Metropolitan Area Network (EMAN) Service. The company proposed (1) modifications to the list of communities where the service is available and (2) a new pricing structure. On 28 June 2013, the Commission received Northwestel’s Tariff Notice 889A, in which the company amended its initial application to adjust some of the proposed rate levels.

Northwestel is requested to file its response to the attached question by 1st August 2013. Interested parties may file comments on Northwestel’s response by 11 August 2013. Northwestel will have until 16 August 2013 to file reply comments.

Yours sincerely,

Original signed by

Michel Murray
Director, Regulatory Implementation

c.c.: Lisa Badenhorst, Government of Yukon,
Martin Brazeau, CRTC, (819) 997-1028,

Request for information

In its application, Northwestel proposed a new pricing structure based on different rate bands and speeds, which would allow the company to charge different rates to customers located in Bands D and H1. In addition, some of the current rates would increase by more than 10 percent based on the company’s proposal.

Pursuant to Telecom Decision 2007-05, Northwestel’s EMAN service is assigned to the company’s Other Capped Services basket. Commission staff notes that pursuant to Telecom Decision 2011-771, services in that basket are subject to an annual pricing constraint of 10 percent at the rate element level and to the rate of inflation at the overall basket level. Commission staff further notes that in Telecom Order 2013-208, the Commission noted that Northwestel’s current regulatory framework does not provide for the use of rate de-averaging.

Explain, with rationale, how this application meets Northwestel’s current regulatory framework.

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