Telecom Commission Letter addressed to Stan Thompson (Northwestel Inc.)

Ottawa, 4 May 2020

Our reference: 1011-NOC2018-0339

BY EMAIL

Mr. Stan Thompson
Chief Financial Officer& Vice-President
Northwestel Inc.
3rd Floor
301 Lambert Street
Whitehorse, Yukon Y1A 4Y4
regulatoryaffairs@nwtel.ca

Re: Follow up to Telecom Regulatory Policy (TRP) 2019-69 - Applications of the determination of Decision 2008-14 to Northwestel Inc.

Dear Sir,

On 13 March 2020, further to the Commission’s directives in Telecom Regulatory Policy 2019-69, Northwestel submitted its Regulatory Economic Studies Manual (Manual) and related company specific Appendices as identified in Appendix 3 of Decision 2008-14^Footnote1. Northwestel indicated that the Manual and related Appendices were developed pursuant to the same decision.

Further to that submission, Commission staff requests that Northwestel respond to the attached request for information by 25 May 2020 on issues pertaining to the submitted Manual.

The requested information must be actually received, not merely sent, by that date.

The response or other documents are to be submitted electronically by using the secured service “My CRTC Account” (Partner Log In or GCKey) and filling the “Broadcasting and Telecom Cover page” located on this web page. 

A copy of this letter and all related correspondence will be added to the public record of the proceeding.
As set out in section 39 of the Telecommunications Act and in Broadcasting and Telecom Information Bulletin CRTC 2010-961, Procedures for filing confidential information and requesting its disclosure in Commission proceedings, persons may designate certain information as confidential. A person designating information as confidential must provide a detailed explanation on why the designated information is confidential and why its disclosure would not be in the public interest, including why the specific direct harm that would be likely to result from the disclosure would outweigh the public interest in disclosure. Furthermore, a person designating information as confidential must either file an abridged version of the document omitting only the information designated as confidential or provide reasons why an abridged version cannot be filed.

Copies of the document(s) should be also be sent to nat.natraj@crtc.gc.ca

Sincerely,

Original signed by

Lyne Renaud
Director, Competitor Services & Costing Implementation
Telecommunications Sector

c.c.:  B. Natraj (Nat Natraj), CRTC, 819-953-5081, nat.natraj@crtc.gc.ca
Chris Noonan, CRTC, 873-353-5852, chris.noonan@crtc.gc.ca

Attach. (1)

Northwestel’s Regulatory Economic Study Manual and related Appendices

1. Refer to the Company’s Regulatory Economic Study Manual dated 11 March 2020 and the related Appendices.
   1. Refer to Appendix S - “List of Wholesale Services”, which lists Wholesale Connect as a Mandated service.  Provide the Commission decision^Footnote2, including relevant paragraph references, where this service was specifically classified as Mandated.  In the event such references cannot be identified, re-submit Appendix S with the appropriate classification for the Wholesale Connect service (i.e. as Non-Mandated)
   2. Refer to each of the Tables in Appendix V indicated below and explain with supporting rationale the issue(s) identified:
      1. Refer to Table 4 “Northwestel Capital Cost Factors”, where the “Technology Cost Factor (TCF)” section reflects a Fibre factor of 201% (Vintage of source data 2011-2015) and the “Mandated Wholesale Factors” section reflects a fibre cost factor of 105% (Vintage of source data Decision 2018-338).
         1. Provide the appropriate Appendix reference where the calculation differences between these two factors is detailed. If the same methodology is applied to calculate each of the above indicated fibre factors, explain, with supporting rationale, why the most recent fibre factor of 105% from Decision 2018-338 should not be the only fibre factor reflected in the Appendix. Further explain why the fibre factor of 201% in the Technology Cost Factor section should not be removed.
      2. Refer to Table 3 “Northwestel Capital Parameters for Regulatory Filings”.
         1. Explain, with supporting rationale, why the same asset description “Microwave equipment” is used for several asset codes/classes such as 40C, 138C, 467C and 567C.
         2. Explain, with supporting rationale, why asset codes/classes identified in Decisions 2003-39 and 2007-746, are not included.  If they should have been included, re-submit Table 3 with the required information.
      3. Refer to Table 5 “Northwestel Warehouse and Distribution Factors” and explain if the Warehousing and Distribution Factor provided applies to capitalised material.  If not, explain how the factor is applied, providing an example.

Date modified:

2020-05-04