Telecom Order CRTC 2002-344

Ottawa, 19 August 2002

Aliant Telecom Inc.
Reference: Tariff notice 21

Provincial Centrex service 3-year contract rate

1.

The Commission received an application by Aliant Telecom Inc. (Aliant Telecom), dated 7 May 2002, to revise NewTel Communications Inc.'s General Tariff item 190, Provincial Centrex Service, in order to introduce a new option for a 3-year contract to all Centrex Band A customers with a minimum of 2800 lines that are, on average, within 1 kilometre of the Central Office.

2.

In its application, Aliant Telecom proposed to offer qualifying customers a monthly rate of $20.75 that is lower than the rates under the existing 3-year contract. Aliant Telecom noted that a 1-year renewal period would be available to these customers.

3.

The company provided an imputation test in support of the lower rate it proposed.

4.

By letter dated 24 May 2002, GT Group Telecom Services Corp. (Group Telecom) submitted that Aliant Telecom had submitted its proposal for the sole purpose of providing service to Memorial University of Newfoundland. Group Telecom argued that the proposed service is not a General Tariff service but a Type II customer-specific arrangement, for which the company did not provide sufficient economic support.

5.

In its reply, dated 17 June 2002, Aliant Telecom stated that it had proposed this tariff to address customer demand for price efficiency and innovation.

6.

The Commission notes that Aliant Telecom filed its proposal as a General Tariff item. However, the Commission is concerned about the proposed de-averaging of Centrex service rates beyond the existing rate bands. In Regulatory Framework for the Second Price Cap Period, Decision 2002-34, 30 May 2002, the Commission stated that "should an ILEC seek to further de-average rates for Uncapped services, it should provide the rationale in its application." The Commission notes Aliant Telecom provided no such rationale for this proposal.

7.

Accordingly, the Commission denies Aliant Telecom's application.

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