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Ottawa, 3 October 2014

File number: Tariff Notice 292

Saskatchewan Telecommunications – Introduction of Text Messaging with 9-1-1 service

  1. The Commission received an application from Saskatchewan Telecommunications (SaskTel), dated 17 January 2014, in which the company proposed revisions to its Competitor Access Tariff item 610.05 – Wireless Service Provider Enhanced Provincial 9-1-1 Network Access Service. Specifically, SaskTel proposed to introduce the Text Messaging with 9-1-1 (T9-1-1) service, pursuant to the Commission’s direction in Telecom Decision 2013-22. This service would be provided to hearing- or speech-impaired persons who have pre-registered for it with their wireless carrier. SaskTel submitted a cost study in support of its application.
  2. In Telecom Order 2014-32, the Commission approved SaskTel’s application on an interim basis, effective 3 February 2014.
  3. The Commission received an intervention regarding SaskTel’s application from Rogers Communications Partnership (RCP). The public record of this proceeding, which closed on 4 March 2014, is available on the Commission’s website at www.crtc.gc.ca or by using the file number provided above.
  4. RCP requested that the Commission review SaskTel’s cost study to ensure that the third-party costs and associated markup are appropriate. RCP questioned whether the third party had filed a cost study in support of the fees it would charge SaskTel. RCP also requested that the costs under the “Other” category be reviewed to ensure that they are appropriate. Finally, RCP requested that the Commission ensure that all costs included in the cost study are causal to the introduction of the T9-1-1 service only.
  5. In reply, SaskTel indicated that the third-party costs included in the cost study are SaskTel’s portion of the costs for the T9-1-1 platform, which is provided by a third party to all incumbent local exchange carriers. SaskTel submitted that a 15-percent markup has been applied to all costs, including third-party costs. SaskTel also submitted that there is no requirement for any third party to file a cost study. The company clarified the specific costs under the “Other” category, and added that the costs associated with bad debt, customer and enterprise sales, and customer service operations under the “Other” category make up only a small portion of the total costs under this category. SaskTel confirmed that all costs included in the cost study are causal to the introduction of the T9-1-1 service.
  6. The Commission considers that SaskTel’s reply addresses RCP’s concerns. The Commission has reviewed SaskTel’s cost study and determines that it is consistent with the costing methodology approved for the incumbent local exchange carriers. The Commission also considers SaskTel’s costs to be reasonable and causal to the T9-1-1 service. As well, the Commission finds that the associated proposed rate is just and reasonable.
  7. In light of the above, the Commission approves on a final basis SaskTel’s application.

Secretary General

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