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Telecom Order CRTC 2004-354

  Ottawa, 29 October 2004
 

Bell Canada

  Reference: Tariff Notice 6831
 

Primary Exchange Service - Business

1.

The Commission received an application by Bell Canada, dated 20 September 2004, to revise General Tariff item 70.2, Rate Schedules for Primary Exchange (Local) Service - Business Service, in order to increase the monthly rates for Flat-rate Individual Line Business service for certain rate bands.

2.

Specifically, Bell Canada proposed to increase the Flat-rate Individual Line Business service rates in Rate Bands E2, E3, E4, F2, F4, F6, F7, G1 and G2 by 9.8 percent.

3.

Bell Canada submitted that the proposal complied with the pricing constraints set out in Regulatory framework for second price cap period, Telecom Decision CRTC 2002-34, 30 May 2002 (Decision 2002-34). Bell Canada further submitted that none of the proposed increases exceeded the 10 percent rate element constraint.

4.

The Commission received no comments with respect to the application.
 

Commission's analysis and determinations

5.

In Decision 2002-34, the Commission applied a number of constraints to the rates for services in the Single and Multi-line Business Local Exchange Services basket in order to provide customers of those services with price protection.

6.

The pricing constraints which apply to services in the Single and Multi-line Business Local Exchange Services basket include:
 
  • a basket constraint, operating through the service basket limit (SBL) for that basket, which must be updated annually by the rate of inflation;
 
  • a rate element constraint limiting rate increases for a service to 10 percent per year; and
 
  • a provision, in order to prevent an incumbent local exchange carrier from decreasing rates in more competitive areas and increasing rates in less competitive areas of the same band, that rates for business local exchange services should not generally be permitted to be further de-averaged within a band.

7.

The Commission notes that the proposed increases to the monthly rates for Flat-rate Individual Line Business service do not exceed the rate element constraint of 10 percent. The Commission finds that the proposed tariff revisions comply with the basket constraint requirement that the service basket index not exceed the SBL for the Single and Multi-line Business Local Exchange Services basket.

8.

The Commission also finds that the proposed tariff revisions comply with the Commission's prohibition, set out in Decision 2002-34, against further de-averaging of rates for business local exchange services within a band.

9.

Accordingly, the Commission considers that Bell Canada's proposal is consistent with the pricing constraints established in Decision 2002-34.

10.

In light of the foregoing, the Commission approves Bell Canada's application. The revisions take effect as of the date of this Order.
  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

Date Modified: 2004-10-29

 

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