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Our reference: 8740-B2-201305772
BY EMAIL
Mr. Philippe Gauvin
Senior Counsel – Regulatory Law & Policy
Bell Canada
160 Elgin Street, FL. 19
Ottawa, Ontario K2P 2C4
bell.regulatory@bell.ca
RE: Bell Canada Tariff Notice 7384 - Optical Dense Wave Division Multiplexer Service
Dear Sir,
On 10 April 2013, Bell Canada (the company) submitted Tariff Notice 7384, proposing changes to the company’s Special Facilities Tariff CRTC 7396 - Item D73, Optical Dense Wave Division Multiplexer Service.
In its application, the company stated that the term for this custom designed arrangement will expire on 31 May 2013, but the customer has indicated a desire to extend the term for an additional twelve months.
Paragraph 28(1)(a) of the Canadian Radio-television and Telecommunications Commission Rules of Practice and Procedure provides that the Commission may request parties to file information or documents where needed.
The company stated that a 20% reduction to the current monthly rates for the service had been negotiated with the customer, which the company proposed to apply during the twelve month extension period commencing on 1 June 2013. Commission staff notes, however, that the proposed revised tariff page indicates that during the 12 month extension period, the 20% discount would be applied to the customer's minimum annual revenue commitment.
The company also stated that the proposed 20% reduction to the monthly rate reflects the application of the company’s pricing principles and objectives including consideration of factors such as the cost of money, market conditions and the company's service costs and price margin objectives. In support of its application, the company attested that its proposal complies with the Commission's price floor test requirements.
The company is requested to provide a complete response, with supporting rationale, to the following requests for information by 29 April 2013.
1. Commission staff considers that the company’s attestation that its proposal complies with the Commission's price floor test requirements is insufficient. The company is requested to submit evidence to demonstrate that its proposal complies with the Commission’s price floor test requirements.
2. In addition, the company is requested to clarify whether the 20% discount applies to the monthly rate or to the minimum annual revenue commitment. If the discount does apply to the monthly rate, identify which specific tariff element(s) would be affected.
Consequently, this application will not be approved on an interim basis on the 15th calendar day following receipt. However, the Commission intends to dispose of this application, along with all associated subsequent revisions, within 45 business days of receipt of a complete application.
Yours sincerely,
Original signed by
Michel Murray
Director, Regulatory Implementation
Telecommunications
c.c.: Imen Arfaoui, CRTC (819) 997-4663, imen.arfaoui@crtc.gc.ca,
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