Telecom Decision

Ottawa, 20 March 1998

Telecom Decision CRTC 98-2-1

ERRATA

Corrections to The corrections to paragraph 459, the table at paragraph 464, Attachments A and C are indicated in bold type:

459. For NewTel, the Commission estimates that the company will require $7.15 million in rebalancing revenues to reduce its going-in contribution rate to 2 cents per minute. The Commission also estimates that the company will have a going-in revenue requirement surplus of $1.16 million. Therefore, the Commission estimates that NewTel requires $5.99 million in revenue increases from residential rates. After taking into account the revenues expected to be generated from the interim rate increases approved in Decision 97-18, the Commission estimates that there will be a residual shortfall of $0.06 million.

464. The Commission estimates that, based on the final determinations made in Part VI of this Decision, the residential local rate increases, that would result if final rates are implemented on 1 January 1998, would be less than $3.00 on average for all telephone companies, except for BC TEL and MT&T. A comparison of the average interim rate increases approved in Decision 97-18 and the average rate increases that would result if the final rates are implemented, effective 1 January 1998, is provided in the table below:

Average Rate Increases ($)


BC TEL
Bell
Island Tel
MT&T
MTS
NBTel
NewTel
TCI

Interim
2.84
2.57
2.05
2.00
0.35
0.00
2.50
1.10
Final
3.20
2.72
2.60
3.19
0.84
0.00
2.52
1.33

Laura M. Talbot-Allan
Secretary General

Attachment A

CALCULATION OF CONTRIBUTION - 1997

 

BC Tel Bell Island Tel MTS MT&T NBTel NewTel TCI TCEI TCI/TCEI
Blended
Contribution Requirements
($ Millions)
1. Contribution Requirement
214.9 220.2 7.1 27.6 45.0 29.7 28.7 228.7 18.5 247.2

 

Toll Minutes Calculation
(millions)
2. a) Telco Orig. & Term.
        Minutes Peak
2,593 11,406 98 794 617 832 306 2,050 2,050 2,050
    b) Telco Orig. & Term.
        Minutes Off-Peak
3,866 13,594 138 976 830 910 506 2,838 2,838 2,838

 

3. a) Entrant Minutes Peak
1,481 6,054 21 221 146 94 94 1,056 1,056 1,056
    b) Entrant Minutes Off-
        Peak
1,238 5,604 25 219 180 126 101 1,005 1,005 1,005
    c) Entrant Stimulated Min.
        Peak (L3A x L3c)
0.0678 0.0678 0.0678 0.0678 0.0678 0.0678 0.0678 0.0678 0.0678 0.0678
    d) Deduct: Entrant
        Stimulated Minutes
        Peak (L3a x L3c)
100 410 1 15 10 6 6 72 72 72
    e) Deduct: Entrant
        Stimulated Minutes Off-
        Peak (L3b x L3c)
84 380 2 15 12 9 7 68 68 68

 

4. a) Market Orig. & Term.
        Minutes Peak
        (L2a + L3a - L3d)
3,974 17,049 118 1,000 753 920 394 3,035 3,035 3,035
    b) Market Orig. & Term.
        Minutes Off-Peak
        (L2b + L3b - L3e)
5,020 18,819 161 1,180 997 1,027 600 3,775 3,775 3,775
    c) Total Market Orig. &
        Term Minutes
        (L4a + L4b)
8,994 35,868 279 2,179 1,750 1,947 994 6,810 6,810 6,810

 

5. a) Calculated Contribution
        per Minute per End ($)
        (L1 / L4C)
0.239 0.0061 0.0254 0.0127 0.0257 0.0153 0.0289 0.0336 0.0027 0.0363
    b) 1997 Contribution
        Ceiling
0.0306 0.0183 0.0344 0.0237 0.0484 0.0345 0.0349 0.0352 0.0033 0.0385
    c) Average Contribution
        per Min. per End ($)
        (Min. of 5a and 5b)
0.0239 0.0061 0.0254 0.0127 0.0257 0.0153 0.0289 0.0336 0.0027 0.0363
    d) Peak Contribution per
        Min. per End ($)
        (2 x L5e)
0.0331 0.0083 0.0357 0.0174 0.0359 0.0207 0.0414 0.0465 0.0038 0.0502
    e) Off-peak Contribution
        per Min. per End ($)
        (L5c / (2 - (L4b / L4c))
0.0166 0.0042 0.0179 0.0087 0.0180 0.0104 0.0207 0.0232 0.0019 0.0251

 

Multiplicative Adjustments
6. DAL Surcharge
1.02 1.02 1.02 1.02 1.02 1.02 1.02 1.02 1.02 1.02
7. a) Entrant Discount
       Jan. - June 1997
85% 85% 85% 85% 85% 90% 90% 85% 85% 85%
    b) Entrant Discount
       July - Dec. 1997
90% 90% 90% 90% 90% 90% 90% 90% 90% 90%
8. Stimulated Minutes Factor
0.9322 0.9322 0.9322 0.9322 0.9322 0.9322 0.9322 0.9322 0.9322 0.9322

 

9. a) Contribution per Min.
        per End - Trunk Side ($)
        Average Jan. - June
0.0193 0.0050 0.0205 0.0102 0.0208 0.0131 0.0247 0.0271 0.0022 0.0293
    b) Contribution per Min.
        per End - Trunk Side ($)
        Peak Jan. - June
0.0268 0.0067 0.0289 0.0140 0.0290 0.0177 0.0354 0.0376 0.0030 0.0406
    c) Contribution per Min.
        per End - Trunk Side ($)
        Off-peak Jan. - June
0.0134 0.0034 0.0144 0.0070 0.0145 0.0089 0.0177 0.0188 0.0015 0.0203
   d) Contribution per Min.
        per End - Trunk Side ($)
        Average July - Dec.
0.0204 0.0053 0.0217 0.0108 0.0220 0.0131 0.0247 0.0287 0.0023 0.0311
    e) Contribution per Min.
        per End - Trunk Side ($)
        Peak July - Dec.
0.0284 0.0071 0.0306 0.0149 0.0308 0.0177 0.0354 0.0398 0.0032 0.0430
    f) Contribution per Min.
        per End - Trunk Side ($)
        Off-peak July - Dec.
0.0142 0.0036 0.0153 0.0074 0.0154 0.0089 0.0177 0.0199 0.0016 0.0215

 

10. Discounts: Line-Side
85% 85% 85% 85% 85% 85% 85% 85% 85% 85%

 

11.a) Contribution per Min.
        per End - Line Side ($)
        Average Jan. - June
0.0164 0.0042 0.0174 0.0087 0.0177 0.0111 0.0210 0.0231 0.0019 0.0249
   b) Contribution per Min.
        per End - Line Side ($)
        Peak Jan. - June
0.0228 0.0057 0.0245 0.0119 0.0247 0.0151 0.0301 0.0319 0.0026 0.0345
    c) Contribution per Min.
        per End - Line Side ($)
        Off-peak Jan. - June
0.0114 0.0029 0.0123 0.0060 0.0123 0.0075 0.0150 0.0160 0.0013 0.0173
   d) Contribution per Min.
        per End - Line Side ($)
        Average July - Dec.
0.0174 0.0045 0.0185 0.0092 0.0187 0.0111 0.0210 0.0244 0.0020 0.0264
    e) Contribution per Min.
        per End - Line Side ($)
        Peak July - Dec.
0.0241 0.0061 0.0260 0.0126 0.0261 0.0151 0.0301 0.0338 0.0027 0.0365
    f) Contribution per Min.
        per End - Trunk Side ($)
        Off-peak July - Dec.
0.0121 0.0030 0.0130 0.0063 0.0131 0.0075 0.0150 0.0169 0.0014 0.0183

Attachment C

CALCULATION OF CONTRIBUTION - 1998

 

BC Tel Bell Island Tel MTS MT&T NBTel NewTel TCI TCEI TCI/TCEI
Blended
Contribution Requirements
($ Millions)
1.a) Contribution Requirement
179.9 191.0 5.6 24.9 35.0 25.5 19.9 194.9 18.5 213.4
   b) WSP Surcharge:
       Order 97-590
2.5 2.3 0.0 0.3 0.3 0.3 0.1 3.3 1.3 4.6
   c) Revised 1998
      Contribution Requirement
177.3 188.7 5.6 24.6 34.7 25.2 19.8 191.6 17.2 208.8

 

Toll Minutes Calculation
(millions)
2. a) Telco Orig. & Term.
        Minutes Peak
2,616 11,589 99 804 622 838 309 2,079 2,079 2,079
    b) Telco Orig. & Term.
        Minutes Off-Peak
3,901 13,813 139 988 836 917 510 2,877 2,877 2,877

 

3. a) Entrant Minutes Peak
1,496 6,111 21 221 146 94 94 1,060 1,060 1,060
    b) Entrant Minutes Off-
        Peak
1,250 5,657 25 219 180 126 101 1,009 1,009 1,009
    c) Entrant Stimulated Min.
        Ratio to Total Minutes
0.0678 0.0678 0.0678 0.0678 0.0678 0.0678 0.0678 0.0678 0.0678 0.0678
    d) Deduct: Entrant
        Stimulated Minutes
        Peak
100 410 1 15 10 0 0 72 72 72
    e) Deduct: Entrant
        Stimulated Minutes Off-
        Peak
84 380 2 15 12 0 0 68 68 68

 

4. a) Market Orig. & Term.
        Minutes Peak
        (L2a + L3a - L3d)
4,012 17,290 119 1,010 758 933 403 3,067 3,067 3,067
    b) Market Orig. & Term.
        Minutes Off-Peak
        (L2b + L3b - L3e)
5,067 19,090 162 1,192 1,004 1,043 611 3,818 3,818 3,818
    c) Total Market Orig. &
        Term Minutes
        (L4a + L4b)
9,079 36,380 281 2,202 1,762 1,975 1,014 6,885 6,885 6,885

 

5. a) Average Contribution
        per Minute per End ($)
        (L1 / L4C)
0.0195 0.0052 0.0198 0.0112 0.0197 0.0127 0.0195 0.0278 0.0025 0.0303
    b) Peak Contribution per
        Min. per End ($)
        (2 x L5c)
0.0271 0.0070 0.0279 0.0153 0.0276 0.0173 0.0280 0.0385 0.0035 0.0420
    c) Off-Peak Contribution
        per Min. per End ($)
        (L5a / (2 - (L4b / L4c))
0.0135 0.0035 0.0139 0.0077 0.0138 0.0087 0.0140 0.0193 0.0017 0.0210

 

Multiplicative Adjustments
6. DAL Surcharge
1.02 1.02 1.02 1.02 1.02 1.02 1.02 1.02 1.02 1.02
7. Entrant Discount
90% 90% 90% 90% 90% 90% 90% 90% 90% 90%
8. Stimulated Minutes Factor
0.9322 0.9322 0.9322 0.9322 0.9322 1.0000 1.0000 0.9322 0.9322 0.9322
Date modified: