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Ottawa, October 31, 2013

Our reference: 8740-N51-200808504


Mr. Michel Gilbert
Assistant Director – Regulatory Affairs
NorthernTel, Limited Partnership
87 Ontario W
Montréal, Québec H2X 1Y8

RE: Expiry of NorthernTel’s exogenous increase to recover local competition start-up costs

Dear Sir:

In Implementation of local competition in NorthernTel, Limited Partnership's serving territory – ExaTEL Inc. and Ontera, Telecom Decision 2007-93, 28 September 2007, the Commission, among other things, approved an exogenous factor of $356,000 per year for recovery of NorthernTel, Limited Partnership’s (NorthernTel) non-recurring (start-up) local competition and local number portability (LNP) costs over a period of five years. The Commission noted that NorthernTel could file a proposal for an exogenous factor adjustment and a tariff application with a view to recovering those costs.

NorthernTel filed Tariff Notice 256, dated 16 June 2008, proposing a rate increase to recover its costs associated with implementing local competition and LNP. The Commission approved NorthernTel’s application on an interim basis in Telecom Order 2008-178, dated 26 June 2008, and on a final basis in Telecom Order 2008 198, dated 18 July 2008.

Commission staff notes that NorthernTel’s exogenous factor adjustment to recover start-up costs for local competition and LNP expired on 26 June 2013, at the end of the five-year recovery period. Commission staff also notes that NorthernTel has not yet filed an
application to propose adjustments to its rates to reflect the expiry of this exogenous adjustment.

NorthernTel is requested to file a tariff application, by no later than 15 November 2013, to propose rate reductions to take into account the expiry of this exogenous adjustment. The company’s proposal should include rate reductions for customers in the same service categories as those to which the exogenous factor was applied. The application should also include the company’s plan for crediting or rebating customers who have been paying a higher rate than they should have been since 27 June 2013.

Yours sincerely,

Original signed by

Michel Murray
Director, Regulatory Implementation

c. c.: Marie-Josée Boivin,
Laurie Ventura, CRTC (819) 997-4589,

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