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Our File: 8695-A53-01/01
Ottawa, 12 October 2001
Mr. Dallas Yeulett
Dear Mr. Yeulett:
Subject: Part VII application - Contribution related matters
In a letter dated 29 June 2001, Aliant Telecom Inc., Bell Canada, MTS Communications Inc. and Saskatchewan Telecommunications (collectively the Companies) filed a Part VII application seeking clarification from the Commission on contribution related matters to take effect in 2002.
One of the issues raised by the Companies relates to the Subsidy Requirement for 2002. In accordance with Decision CRTC 2000-746, supplemental funding will continue to be made available to Northwestel on an interim basis effective 1 January 2002. Therefore, for the Commission to be in a position to make an informed determination with respect to the 2002 Subsidy Requirement, Northwestel is requested to file an initial estimate of its 2002 supplemental funding.
Pursuant to Decision CRTC 2000-746, Long-distance competition and improved service for Northwestel customers, dated 30 November 2000, a final determination on the 2002 supplemental funding will be made as part of the initial review to be initiated in 2002. In the meantime, in order to better estimate the interim 2002 supplemental funding, Commission staff will examine changes to the depreciation expense resulting from major capital spending that may impact the 2002 supplemental funding. For that purpose, Northwestel is requested to list all major capital expenditures undertaken in 2001 including the estimated impact on the 2002 depreciation. Northwestel is also requested to provide a comparison analysis between this list and the forecasted capital expenditures filed on the records that led to Decision 2000-746.
Commission staff will also consider other significant changes that Northwestel believes should be taken into account in the establishment of an initial estimate of the 2002 supplemental funding. In this event, Northwestel is required to itemize and quantify every change separately. All assumptions and calculations in arriving at the initial estimate for the 2002 supplemental funding should be clearly stated.
Northwestel is to file its initial estimate of the 2002 supplemental funding, including all supporting documentation, with the Commission, serving copies on all parties to the above application, by 5 November 2001. Responses are to be actually received, and not merely sent, by this date.