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Ottawa, 14 April 1998
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Telecom Order CRTC 98-354
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On 7 November 1997, TELUS Communications Inc. (TCI) filed an application for approval of tariff revisions to General Tariff Item 1003, Message Relay Service (MRS), introducing a monthly rate of $0.11 applicable to TCI's Exchange Services which have access to TCI's public switched network. A similar application was filed by TELUS Communications (Edmonton) Inc. (TCEI).
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File Nos.: TCI Tariff Notice 984; TCEI Tariff Notice 65
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1. On 5 December 1997, the Canadian Cable Television Association (CCTA) submitted comments on both files.
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2. These applications were granted interim approval on 15 December 1997 in Telecom Orders 97-1834 and 97-1835.
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3. CCTA pointed out that the study used to support the proposed rate contained a change in Network Access Service (NAS) forecast from a previous study filed in the proceeding announced in Implementation of Price Cap Regulation, 1997 Contribution Charges and Related Issues, Telecom Public Notice CRTC 97-11, 25 March 1997 (PN 97-11).
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4. CCTA also pointed out that there was a change in the number of MRS messages per NAS used in the study as compared to a similar study filed in the proceeding announced in Implementation of Regulatory Framework - Local Interconnection and Network Component Unbundling, Telecom Public Notice CRTC 95-36, 11 July 1995 (PN 95-36).
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5. CCTA objected to TCEI using TCI's costs as proxy costs and proposing the same rates as TCI. CCTA recommended that assuming TCEI's MRS service is provisioned separately from TCI's service, TCI's rates should only be given interim approval until TCEI completes the requisite costing study. As an alternative, if TCI and TCEI use the same MRS platform, TCI should be directed to re-calculate its costing study based on the combined forecasts for NAS and MRS messages.
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6. TCI noted that the NAS forecasts used in the supporting study were different from those in the study submitted in the PN 97-11 proceeding in that the latter included components that do not have access to MRS.
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7. TCI also stated that the information used in the PN 95-36 proceeding is two years old and no longer indicative of the current Alberta market.
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8. TCI submitted that it is common practice within the telecommunications industry to use proxy costs, where appropriate. The companies noted similarities in their provision of MRS with respect to the technology used, operational processes and the labour costs of the operators involved. TCI noted that in meetings with the Deaf, Hard of Hearing and Deaf-Blind Communities in Alberta, TCI determined that because of the nature and necessity of MRS, a uniform rate is appropriate.
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9. The Commission is of the view that TCI and TCEI have appropriately addressed the issues raised by CCTA.
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10. TCI Tariff Notice 984 and TCEI Tariff Notice 65 are therefore granted final approval.
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Laura M. Talbot-Allan
Secretary General
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This document is available in alternative format upon request.
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