ARCHIVED - Order CRTC 2000-797
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Order CRTC 2000-797 |
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| Ottawa, 24 August 2000 | |
Dramis application denied to change NBTel's network access line rates |
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| Reference: 8661-D19-01/99 | |
| The Commission denies a Dramis Network Cabling Ltd. application to change NBTel's network access line rates to a tapered rate structure. | |
| 1. | Multiline network access lines (multiline trunks) are used to connect key systems and private branch exchanges (PBXs) to the telephone network. These terminal equipment products act as concentration devices and typically provide for connection to a number of telephones. Business Communication Service (BCS) is a Centrex-like network-based substitute for key systems and PBXs. BCS provides each telephone with a direct access to the public-switched telephone network. NBTel Inc. sets BCS prices using a tapered rate schedule with the monthly rate decreasing to $21.80 per line as additional lines are ordered. NBTel charges a flat $40 rate per month for each multiline trunk. |
| 2. | Dramis Network Cabling Ltd. submitted that NBTel's monthly rate for multiline service, in its current form, is anti-competitive and provides an unfair advantage to NBTel to promote its BCS business. Dramis stated that NBTel's abuse of its dominant position in New Brunswick prevents competitors, such as local independent interconnection companies, from fair and equal access to the marketplace. |
| 3. | Dramis proposed that multiline trunks be charged in a tapered fashion similar to the tapered BCS rates. Failing this, Dramis submitted that the alternative would be to permit the use of key systems or PBXs with BCS lines at BCS rates. Dramis submitted that this would result in an equal playing field that is self-policed. |
| 4. | NBTel submitted that its rates have been filed with, and approved by the Commission, and are consistent with prior determinations of the Commission specifically concerning the rate relationship between multiline trunks and BCS. |
| 5. | NBTel cited that Telecom Order CRTC 99-497, dated 1 June 1999, directed NBTel to reduce its multiline trunk rate to $40 per month. |
| 6. | The Commission finds that a tapered rate schedule for multiline trunks isn't appropriate as proposed by Dramis, because the call carrying capacity of multiline groups increases as the multiline group size increases. The cost per line increases as lines are added in a trunk group which works with a concentration function. Therefore, providing a tapered rate schedule would not be consistent with usage and cost attributes. Therefore, the Commission denies Dramis's application. |
| 7. | Dramis filed its application on 8 December 1999 and filed its reply comments on 12 May 2000. The Commission also received comments from Dramis on 8 June 2000 and Atlantic Communications Inc. on 6 July 2000, with respect to the Part VII application and NBTel's Basic Business Communication Service Bundle Promotion filed under NBTel Tariff Notice 840. |
| Secretary General | |
| This document is available in alternative format upon request and may also be examined at the following Internet site: http://www.crtc.gc.ca |
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