ARCHIVED -  Telecom Order CRTC 97-574

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 Telecom Order

 Ottawa, 29 April 1997
 Telecom Order CRTC 97-574
 The Commission has received an ex parte application from Stentor Resource Centre Inc. (Stentor), on behalf of and with the concurrence of TELUS Communications Inc. (TCI), under Tariff Notice 368 (TN 368) dated 1 November 1996, for approval of a Special Facilities Tariff providing for a Customer Specific Business Long Distance Service.
 File No.: Tariff Notice 368
1.  Under Telecom Order CRTC 96-1308 (Order 96-1308) dated 19 November 1996, the Commission granted the proposed tariff revisions interim approval conditional on the company informing the Commission that the customer had selected Stentor as a carrier.
2.  Order 96-1308 specified that Stentor was to advise the Commission of the outcome of the selection process as soon as possible, and once selected, was to provide an abridged version of the application for the public record in all relevant public examination rooms within 2 business days of notification.
3.  On 17 January 1997 Stentor notified the Commission that it had been selected to provide the associated services and an abridged version would be placed on the public record within 2 business days of notification.
4.  AT&T Canada Long Distance Services Company (AT&T Canada LDS) submitted that the use of the word "may" in the tariff proposed under TN 368 provides Stentor with too much discretion in levying additional charges in the instance where a customer fails to meet certain terms and conditions associated with subscribing to the proposed service.
5.  AT&T Canada LDS noted that in the past, the Commission had ruled that regulated entities subject to its jurisdiction should not be able to have absolute discretion in the way such entities offer services.
6.  AT&T Canada LDS submitted that, due to the ambiguity that is present in the proposed tariff, the potential exists for Stentor to unjustly discriminate amongst customers.
7.  AT&T Canada LDS submitted that Stentor has underestimated TCI's Contribution Charge/Minute, Start-up Charge/Minute, and the Essential Facilities Charge/Minutes by underestimating the "Factor 2" multiplicative adjustment used to derive these charges making it easier for the service to meet the imputation test.
8.  AT&T Canada LDS submitted that, based on the facts outlined, the Commission should deny final approval.
9.  Stentor submitted that the use of the word "may" was not intended to convey that unreasonable discretion would be applied in the levying of the charges in question.
10.  Stentor noted that should the Commission determine that the current wording is inappropriate, Stentor proposes to replace the word "may" with "will".
11.  Stentor noted that the description of "Factor 2" in the cost study was inadvertently incomplete, but asserted that the estimation of the costs performed in the study were based on the complete definition.
12.  Stentor submitted that it adequately addressed all concerns raised by AT&T Canada LDS and requested that the Commission grant final approval.
13.  The Commission is of the view that, with respect to the terms and conditions set out in the tariff, the use of the word "will" in National Services Tariff (NST) Items 709.3 (b), (d) and (e) would be more definitive and less discretionary than the word "may" and therefore is more appropriate than the current wording of the specified items.
14.  The Commission considers that Stentor has adequately addressed AT&T Canada LDS' concerns with respect to the estimation of costs performed in the study relating to the "Factor 2" multiplicative factor and the calculation of TCI's Contribution Charge/Minute, Start-up Charge/Minute and Essential Facilities Charge/Minute.
15.  In light of the foregoing, the Commission orders that:
 (a) TN 368 is approved on a final basis subject to Stentor replacing the use of the word "may" with "will" in NST Items 709.3 (b), (d), and (e); and
 (b) Stentor is directed to issue within 10 business days after the date of this Order revised tariff pages reflecting the modifications set out in 16 (a).
 Allan J. Darling
Secretary General
 This document is available in alternative format upon request.

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