ARCHIVED -  Telecom Order CRTC 97-959

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Telecom Order

Ottawa, 11 July 1997
Telecom Order CRTC 97-959
On 27 March 1997, TELUS Communications Inc. (TCI) filed Tariff Notice 892 (TN 892) and TELUS Communications (Edmonton) Inc. (TCEI) filed Tariff Notice 48 (TN 48) for approval of similar Special Assembly Tariffs providing for Centrex service for a very large inter-provincial customer.
File Nos.: TCI TN 892 and TCEI TN 48
1. In support of their applications, TCI and TCEI stated that, based on the demands of a very large national customer for lower rates based on very large volumes and long term commitments, they proposed to offer this customer Centrex service through the terms and conditions of these Special Assemblies. The proposals also allow the customer to reduce the number of lines by up to an accumulative total of 25% of the maximum number of lines in service in the company's territory without incurring termination charges (the 25% float condition).
2. Comments regarding both applications were filed by Call-Net Enterprises Inc. (Call-Net) dated 24 April 1997 and AT&T Canada Long Distance Services Company (AT&T Canada LDS) dated 28 April 1997, submitting that the proposed service was only an extension of the National Centrex service and should not be offered under special assembly tariffs.
3. Call-Net and AT&T Canada LDS also stated that offering this type of long term contract service, prior to the introduction of local competition and price-cap regulation, would be anticompetitive.
4. TCI and TCEI filed a combined response for both Tariff Notices stating that the features, such as the additional volume discount and the 25% float condition, proposed for this very large customer, make the use of special assembly tariffs appropriate.
5. TCI and TCEI also stated that Centrex as a whole has been competitive for some time, that long term contracts and volume discounts are not new features of the service and that, therefore, the proposed tariffs are not anticompetitive.
6. The Commission considers that the proposed service is basically an extension of the existing National Centrex service in that it provides two additional break-points in the volume discounts for the existing National Centrex service and does not involve features or technology that differ from those covered by the General Tariff. The proposed service would therefore be more appropriately provided under the companies' general tariffs.
7. Accordingly, the Commission denies the applications filed under TCI TN 892 and TCEI TN 48.
8. The Commission would be prepared to approve the terms and conditions of the proposed service if the telephone companies were to file them under their respective General Tariffs.
Laura M. Talbot-Allan
Secretary General
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