Telecom Procedural Letter Addressed to Michel Gilbert (Kenora Municipal Telephone System (KMTS))
Our reference: 8620-K1-201613092
Ottawa, 7 March 2017
Mr. Michel Gilbert
Assistant Director - Regulatory Affairs
Kenora Municipal Telephone System (KMTS)
87 West Ontario Street
Montreal, Quebec, H2X 1Y8
Subject: Implementation plan of strong intermodal wireless number portability (WNP) in KMTS' exchanges of Kenora and Keewatin, ON
Dear Mr. Gilbert:
On 20 December 2017, the Commission received KMTS’ implementation plan associated with introducing intermodal WNP in the exchanges of Kenora and Keewatin, Ontario, following a request from Rogers Communications Canada Inc. (RCCI). The Commission received comments from RCCI on 16 January 2017.
At paragraph 16 of its implementation plan, KMTS indicated that it would be providing the Commission with a cost recovery proposal related to the intermodal WNP implementation in January 2017. It also stated that this proposal would be accompanied by a supporting economic study that would quantify and detail the implementation costs. To date, the Commission has not received KMTS’ cost recovery proposal.
Commission staff considers that KMTS has had sufficient time to develop a cost recovery proposal, including the related cost study. Commission staff also considers that based on KMTS’ proposed timeline, the Commission should already have received KMTS’ cost recovery proposal. Therefore, KMTS is directed to file its cost recovery proposal by 24 March 2017. Please note the following:
- Any proposal to recover the causal costs by way of rate increases is to identify the rate increase that would be applicable to specific residential and business services which relate to customers that would benefit from the introduction of WNP.
- The economic study should provide details of the cost cash flows associated with implementing WNP in the company’s operating territory. The cost cash flows are to be broken down into start-up and ongoing costs, and also expressed as present worth of annual costs and annual equivalent cost, using a 5-year study period. The economic study should also include a sensitivity that reflects a 10-year study period.
- The economic study should also provide a breakdown of the start-up and ongoing costs into major capital and expense components. The study should also provide details on the functionality and activities associated with each of the major components, and the associated costing methodology and all assumptions – including the source and vintage of data used, the cost increase factor(s), expense increase factors(s), and productivity increase factor(s) applied in the study period.
Interested parties will have until 7 April 2017 to provide comments on the economic study and the related documents KMTS will have until 18 April 2017 to provide its final reply.
Original signed by
Director, Dispute Resolution & Regulatory Implementation
c.c.: Simon-Pierre Olivier, Director Regulatory Affairs, email@example.com
Michael Holmes, CRTC, 819-953-5123, Michael.firstname.lastname@example.org
Imen Arfaoui, CRTC, 819-997-4663, email@example.com
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