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ARCHIVED - Telecom Commission Letter Addressed to Paul Cowling (Shaw Communications Inc.)

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Ottawa, 3 February 2015

Our reference: 8740-S9-201500109

BY EMAIL

Mr. Paul Cowling
Vice President, Regulatory Affairs
Shaw Communications Inc.
40 Elgin Street, Suite 1400
Ottawa, Ontario  K1P 5K6
regulatory@sjrb.ca

RE: Shaw Communications Inc. Tariff Notice 22 – Request for information

Dear Sir:

On 6 January 2015, the Commission received Tariff Notice (TN) 22 submitted by Shaw Communications Inc. (Shaw). In TN 22 Shaw proposed the introduction of five new Internet services within their Third Party Internet Access (TPIA) service offering, with a proposed effective date of 6 February 2015:

As part of its tariff notice application Shaw provided a regulatory economic study in support of the proposed TPIA service rates.

Commission staff is continuing its analysis of TN 22. Therefore, the Commission will be unable to dispose of the application before 6 February 2015. However, Commission staff intends to complete its analysis in time for the Commission to render a decision within 45-business days from the date of filing.

The Commission received comments on TN 22 from Canadian Network Operators Consortium Inc., IAAK Technologies Inc. and Juce Communications Inc. The interveners submitted that the rates proposed by Shaw for the new services are not prima facie just and reasonable when compared to the rates for Shaw’s existing TPIA services.

Shaw in its reply to the interventions submitted that the proposed TPIA rates, supported by a cost study, reflect the increased costs associated with a significant growth in demand for its Internet services.

In order for Commission staff to understand the assumptions and costing methodologies used in supporting Shaw’s TN 22 application, Shaw is to provide a response to the following two interrogatories:

  1. Provide an electronic copy of the cost model used to support the 6 January 2015 TN 22 tariff filing and identify any methodological and changes assumption changes from the previous model provided to the Commission in the proceeding leading to Telecom Regulatory Policy
    CRTC 2011-703, Billing practices for wholesale residential high-speed access services, dated 15 November 2011, along with supporting rationale for such assumptions and changes. The populated model should also include all the associated linked spreadsheet files, and any other supporting data used to develop the various costs supporting the proposed TPIA rates. The cost model filed should provide all equations used to calculate costs so that the Commission can understand how the cost inputs were developed. Shaw is also to provide a brief description of the input data variables, the vintage of the input data, modelling assumptions with supporting rationale, and any other costing details relevant to the TN 22 tariff filing.
  2. Refer to Table 6b – Capital Equipment, “CMTS Core”:
    1. Further refer to lines 3 and 4.” For each of lines 3 and 4, please elaborate on the “Sub-component Description” and provide a step-by-step calculation of how the “Quantity” has been estimated.
    2. Further refer to capacity under the column entitled “Capacity (Specify Units)”. Explain how the capacity has been estimated with supporting rationale; and
    3. Further refer to the column titled “Capacity Driver Description”. Provide a brief description of the capacity driver and explain how it is used in the model.

Shaw is to provide responses to the above interrogatories, serving copies on all parties to the application, by 9 February 2015.

Parties may file written comments with the Commission solely in relation to Shaw’s responses to the interrogatories, serving copies on all other parties, by 19 February 2015. Shaw may file reply comments with the Commission by 26 February 2015.

The information provided in response to the above interrogatories should be disclosed in accordance with the guidelines established in Confidentiality of Information used to establish wholesale service rates – Telecom Regulatory Policy CRTC 2012-592, dated 26 October 2012.

Where a document is to be filed or served by a specific date, the document must be actually received, not merely sent, by that date.

Sincerely,

Original signed by

Lyne Renaud
Director, Competitor Services & Costing Implementation
Telecommunications Sector

c. c.: Martin Brazeau, Senior Analyst, CRTC, 819-997-1028, martin.brazeau@crtc.gc.ca
Doug Thurston, Manager, CRTC, 819-997-4579, doug.thurston@crtc.gc.ca
Esther Snow, Shaw, esther.snow@sjrb.ca
William Sandiford, CNOC, regulatory@cnoc.ca
Ning Yan, Juce Communications Inc., ningyan@juce.ca
Ihab Khalil, IAAK Technologies Inc., ihab.khalil@iaak.ca

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