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ARCHIVED - Order CRTC 2001-391

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Order CRTC 2001-391

 

Ottawa, 18 May 2001
 

MTS to implement an instalment payment plan for construction charges

 

Reference: 8624-M3-01/01

1.

In August 2000, Russell Larocque wrote to the CRTC's Winnipeg office with a complaint concerning MTS' lack of a payment plan for construction charges. Mr. Larocque had been quoted an amount to have a telephone line installed to his new home near Fisher Branch, Manitoba. The quote included the condition that the amount had to be paid in full prior to the start of construction. Mr. Larocque offered to pay MTS a downpayment of more than half the quoted amount and asked the company to accept instalment payments for the remainder. MTS refused his request.

2.

MTS submitted that it had considered
Mr. Laroque's request for instalment payments but considered that such a practice could expose the company to significant losses. The company further submitted that it considered that it is most appropriate for customers to borrow money from a financial institution rather than the telecommunications carrier in order to fund any construction necessary to acquire telephone service.

3.

MTS also noted that in Telecom Decision CRTC 96-10, Local service pricing options, the Commission's directive to offer residential customers the opportunity to spread any payments associated with connection charges over a period of up to six months did not apply to construction charges.

4.

MTS also submitted that customers who have chosen to move to rural (and sometimes relatively remote) locations do so for lifestyle reasons and that there is no affordability issue for these customers.

5.

The Commission notes that, in Order CRTC 2000-351, it directed Bell Canada to file an instalment payment plan option for service extensions not covered by a service improvement program. In Order CRTC 2000-980, the Commission approved Bell Canada's Tariff Item 150.7 for an instalment payment plan.

6.

Consistent with Order 2000-351, the Commission considers that it is appropriate to require MTS to file proposed tariff pages providing an instalment payment option for construction charges to residence customers. The Commission directs MTS to file such proposed tariffs by
18 June 2001.

 

Secretary General
 

This document is available in alternative format upon request and may also be examined at the following Internet site: www.crtc.gc.ca 

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