Telecom - Staff Letter addressed to Imran Khan (Northwestel Inc.)
Ottawa, 7 November 2024
Our Reference: 8740-N1-202404482
BY EMAIL
Imran Khan
Chief Financial Officer & Vice-President
Northwestel Inc.
10th Floor 5201 Franklin Ave #100
Yellowknife, YT X1A 2P1
regulatoryaffairs@nwtel.ca
Subject: Northwestel Inc Tariff Notice 1228 – Wholesale Connect Service Rate Decreases– reclassification as a competitor services application
On 21 August 2024, the Commission received an application from Northwestel Inc. (Northwestel) proposing changes to its Access Service Tariff – CRTC 21480, Item 300, Wholesale Connect Service.
In Tariff Notice (TN) 1228, Northwestel proposed to reduce the monthly Wholesale Connect Service rates per customer for the Basic Class of Service (CoS) bandwidth in all community types, and reduce the monthly Wholesale Connect Service rates per customer for additional CoS bandwidth in all community types.
In accordance with Northwestel Inc. – Application to modify the approval process for the company’s retail Internet service tariffs, Telecom Decision CRTC 2022-343, 20 December 2002 (TD 2022-343) and Approval processes for tariff applications and intercarrier agreements, Telecom Information Bulletin CRTC 2010-455-1, 19 February 2016 (TIB 2010-455-1), Northwestel filed TN 1228 as a Group A tariff application, as it stated it pertains to changes to previously approved rates for existing tariffed services where the revised rates comply with the Commission's price regulation rules. Northwestel categorized the Wholesale Connect Service in its tariff notice as a competitor service, pursuant to Northwestel Inc. – Regulatory Framework, Modernization Plan, and related matters, Telecom Regulatory Policy CRTC 2013-711, 18 December 2013.
Northwestel stated that the changes comply with the Commission's revised price floor rules for Wholesale Connect Service as set out in TD 2022-343. Northwestel proposed an effective date for TN 1228 of 22 August 2024.
Commission staff is of the view that, as Northwestel filed TN 1228 as a Group A tariff application, it was forborne from approval and the rates came into effect on the date indicated. However, as there has been an intervention on this application challenging the methodology used to estimate the rate reduction, the application does not comply with the requirements for Group A applications set out in TIB 2010-455-1 and the Commission can exercise its remedial powers to address this situation as set out in TD 2022-343.
For efficiency, rather than closing this application as filed by Northwestel and requiring it to refile a new application, Commission staff will consider this to be a competitor services tariff application and proceed accordingly.
Consequently, interested parties may file interventions within 30 calendar days of the date of this letter, followed by the 10 calendar days for replies.
Further, as Commission staff is continuing its analysis of this application, the application will not be disposed of by the 45th business day following receipt. Additionally, this tariff notice will not come into effect 22 August 2024 as proposed by Northwestel. However, the Commission intends to issue a decision by early 2025.
Sincerely,
Original signed by
Chris Noonan
Director, Competitor Services & Costing Implementation
Telecommunications Sector
c.c.:
Stais Armstrong, CRTC, 819-775-0401, stacey.armstrong@crtc.gc.ca;
Daniel Cardozo, CRTC, 819-962-5720, daniel.cardozo@crtc.gc.ca;
Nat Natraj, CRTC, (819) 963-5081, nat.natraj@crtc.gc.ca;
Dean Proctor, SSi Canada, regulatory@ssicanada.com
- Date modified: