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Ottawa, 25 June 2014

Our Reference: 8663-N1-201401406

BY EMAIL

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

Re: Part 1 Application regarding Northwestel’s Proposal for a Terrestrial Retail Internet Basket Structure and Pricing Constraints – Requests for information

 With regard to the above-noted application, Northwestel is requested to provide responses to the attached requests for information:

Northwestel is to file responses to these requests for information with the Commission, by 16 July 2014.

Interveners may file supplementary reply comments with the Commission, serving a copy on Northwestel, by 25 July 2014.  Northwestel may file a supplementary answer with the Commission, serving a copy on the Interveners, by 1 August 2014. 

Documents to be filed or served by a specific date must be actually received, not merely sent, by that date.

Yours sincerely,

Original signed by

John Macri
Director, Telecommunications Policy

cc: Jesse Buzzie, CRTC, (613) 769-2035, jesse.buzzie@crtc.gc.ca
Benjamin Sanders, Government of Yukon, benjamin.sanders@gov.yk.ca
Jim Pratt, Designated Representative of Government of Yukon, jhpratt@msn.com
Linda Maljan, Government of the Northwest Territories, linda_maljan@gov.nt.ca
Angus Oliver, Designated Rep. of Gov. of NW Territories, angusoliver320@gmail.com,
Jean-François Léger, PIAC, (613) 562-4002 ex. 28, jfleger@piac.ca

Attachment

Requests for information to Northwestel

  1. In relation to the Retail Internet Services basket, provide the following information:
    1. the total revenues for 2014 (year-to-date and a forecast for the remainder of 2014), broken down by rate element,
    2. the demand associated with each rate element in part a) above (based on actual and forecast data), and
    3. the total revenues for 2013, broken down by rate element, based on actual data. If the revenues by rate element are not available, provide disaggregated revenues to the greatest level of detail possible, such as residential/business or by technology.
  2. In its submission dated 27 March 2014, Northwestel provided arguments to support its position that classifying retail Internet services as Other Capped Services remains the most appropriate price cap treatment.

    Explain, with supporting rationale, the specific drawbacks of placing retail Internet services in its own basket versus the Other Capped Services basket.

  3. In its submission dated 27 March 2014, Northwestel submitted that the prices for retail Internet services can generally be expected to decline over time and with growth in competition; however there will remain a need to increase the prices of some services.

    For each scenario below, comment on the appropriateness of retaining retail Internet services in a separate basket and implementing the following pricing constraints:

    1. Rate adjustments are allowed such that the weighted-average price of all the services overall would not be allowed to increase annually (i.e. rate restructuring on a revenue-neutral basis). Rates increases for any specific rate element cannot exceed 5 percent;
    2. The same overall pricing constraint applies as described in a) above, Rates increases for any specific rate element cannot exceed 10 percent; and
    3. The same overall pricing constraint applies as described in a) above. Residential and business Internet services are placed in separate sub-baskets, each with separate rate element pricing constraints (i.e., the lesser of inflation or 5 percent for residential services; and10 percent for business services).
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