ARCHIVED -  Telecom Order CRTC 97-1577

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Telecom Order

Ottawa, 30 October 1997
Telecom Order CRTC 97-1577
On 25 July 1997, Northwestel Inc. (Northwestel), under Tariff Notice (TN) 625, proposed revisions to its Private Wire Service Tariff to remove half-duplex transmission rates from the tariff, as well as other revisions. On 21 August 1997, the company filed further changes under TN 625A.
File No.: Tariff Notice 625
1. The company indicated that it effectively no longer provides half-duplex service since, due to technological changes, it now provisions only channels that are capable of full duplex transmission. The company submitted that it is now the customer's equipment that determines whether a given channel will be used for half-duplex or full duplex transmission.
2. The Yukon Territorial Government (YTG) submitted that it has an existing contract for a mobile radio system that is equipped to use the half-duplex tariffs, and that approval of the proposed changes would result in significant rate increases. It requested that Northwestel's application be denied or that its existing contract be grandfathered.
3. Northwestel argued that grandfathering existing customers of the half-duplex service would promote price discrimination between existing and future customers.
4. The Commission is of the view that Northwestel's proposal, in keeping with technological changes, is appropriate as it would allow rates to be applied equitably.
5. The Commission, however, is also of the view that YTG's request to grandfather the contract would be appropriate. Further, any other existing customers with long-term contracts that depend on the use of the half-duplex service should be grandfathered, or migrated to a Special Facilities Tariff (SFT) if currently on general tariffs, at the same rate, if they can prove that they utilize half-duplex equipment. The Commission is further of the view that any other existing customers should be grandfathered for a period of one year from the date of this Order.
6. In light of the foregoing, the Commission orders that:
a) TNs 625/A are approved.
b) Existing customers with long-term contracts that depend on the use of the half-duplex service and who utilize half-duplex transmission equipment are to be grandfathered or migrated to SFTs under the same rates.
c) All other existing customers are to be grandfathered for a year from the date of this Order.
Laura M. Talbot-Allan
Secretary General
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