Ontario Northland Telecommunications

D R A F T

 Phase III Costing
Carrier Access Tariff (CAT)
and Split Rate Base (SRB)
Procedures Manual

Original (Draft)

3 November, 1997

Ontario Northland Telecommunications
555 Oak Street East
North Bay , Ontario
P1B 8L3

AMENDMENTS PAGE	
AMENDMENT	DESCRIPTION	DATE OF ISSUE	
-	Original Draft	3 November, 1997	

			

			

TABLE OF CONTENTS
1. INTRODUCTION	
1.1 The Structure of this Manual	
1.2 Overview of the O.N. Tel Costing Methodology	
1.2.1 The Broad Service Categories (BSC’S)	
1.2.1.1 The Access BSC	
1.2.1.2 The Local BSC	
1.2.1.3 The Toll BSC	
1.2.1.4 The Network BSC	
1.2.1.5 The Terminal BSC	
1.2.1.6 The Other BSC	
1.2.1.7 The Common BSC	
1.2.2 The Assignment of Costs	
1.2.3 The Assignment of Revenues	
1.2.4 Methods of Assignment	
1.2.5 O.N. Tel. Annual Study Requirements	
1.3 The Average Net Invested Base	
1.4 The Contribution Requirement	
1.5 The Carrier Access Tariff	
1.5.1 The Contribution Component	
1.5.2 The Switching and Aggregation Component	
1.5.3 The Equal Access Component.	
1.6 The Split Rate Base	
2. THE ASSIGNMENT OF INVESTMENTS	
2.1 Introduction	
2.2 Summary of Assignments	
2.2.1 The Local Switch Study	
2.2.2 The Circuit Utilisation Study	
2.3 The Assignment of Account 2100 General Support	
2.3.1 The Assignment of Account 2111 Land.	
2.3.2 The Assignment of Account 2112 Motor Vehicles.	
2.3.3 The Assignment of Account 2116 Tools and Test Equipment.	
2.3.4 The Assignment of Account 2121 Buildings and Towers.	
2.3.5 The Assignment of Account 2122 Furniture and Office Equipment.	
2.3.6 The Assignment of Account 2124 Computers.	
2.4 The Assignment of Account 2200 Central Office Equipment	
2.4.1 The Assignment of Account 2210 COE Switching Equipment	
2.4.2 The Assignment of Account 2230 COE Transmission Other	
2.4.3 The Assignment of Account 2240 COE Transmission Radio	
2.4.4 The Assignment of Account 2250 COE Common and Power	
2.4.5 The Assignment of Account 2260 COE Broadcast	
2.4.6 The Assignment of Account 2270 COE FOTS	
2.5 The Assignment of Account 2300 Station Apparatus	
2.5.1 The Assignment of Account 2310 Station Apparatus Other	
2.6 The Assignment of Account 2400 Cables and Pole Lines	
2.6.1 The Assignment of Account 2410 Cables and Pole Lines	
2.6.2 The Assignment of Account 2420 Fibre Cable	
2.6.3 The Assignment of Account 2430 Cables and Pole Lines Power	
2.7 The Assignment of Account 2500 Cellular	
2.7.1 The Assignment of Account 2510 Cellular	
2.8 The Assignment of Account 2600 Amortisable Assets	
2.8.1 The Assignment of Account 2680 Amortisable Tangible Assets	
2.8.2 The Assignment of Account 2690 Amortisable Intangible Assets	
3. THE ASSIGNMENT OF EXPENSES	
3.1 Introduction	
3.2 Summary of Assignments	
3.2.1 The Operations Activity Study	
3.2.2 The Marketing Study	
3.3 The Assignment of Plant Operations Expense Accounts	
3.3.1 The Assignment of Account 6110 Network Support Expenses	
3.3.1.1 The Assignment of Account 6112 Motor Vehicle Expenses	
3.3.1.2 The Assignment of Account 6116 Work Equipment Expenses	
3.3.2 The Assignment of Account 6120 General Support Expenses	
3.3.2.1 The Assignment of Account 6121 Land and Buildings Expenses	
3.3.2.2 The Assignment of Account 6122 Furniture and Office Equipment Expenses	
3.3.2.3 The Assignment of Account 6124 Computer Equipment Expenses	
3.3.3 The Assignment of Account 6200 COE Expenses	
3.3.3.1 The Assignment of Account 6210 COE Switching Equipment Expenses	
3.3.3.2 The Assignment of Account 6220 Operator Systems Expenses	
3.3.3.3 The Assignment of Account 6230 COE Transmission Expenses	
3.3.3.4 The Assignment of Account 6240 COE Common and Power Expenses	
3.3.4 The Assignment of Account 6310 Station Apparatus Expenses	
3.3.5 The Assignment of Account 6410 Cables and Pole Lines Expenses	
3.3.6 The Assignment of Account 6451 Cellular Expenses	
3.3.7 The Assignment of Account 6511 Other Plant Operations Expenses	
3.4 The Assignment of Network Operations Expense Accounts	
3.4.1 The Assignment of Account 6531 Power Expenses	
3.4.2 The Assignment of Account 6532 Network Administration Expenses	
3.4.3 The Assignment of Account 6535 Engineering Expenses	
3.4.4 The Assignment of Account 6536 Radio Licence Expenses	
3.4.5 The Assignment of Account 6537 Circuit Lease and Telephone Expenses	
3.5 The Assignment of Access Expense Accounts	
3.5.1 The Assignment of Account 6541 CAT Payments NTL	
3.5.2 The Assignment of Account 6542 Commissions NTL Private Line	
3.5.3 The Assignment of Account 6543 Commissions Abitibi	
3.5.4 The Assignment of Account 6544 Commissions Cochrane PUC	
3.6 The Assignment of Depreciation and Amortisation Expense Accounts	
3.6.1 The Assignment of Account 6550 Depreciation Expense.	
3.6.2 The Assignment of Account 6563 Amortisation Expense Tangible.	
3.6.3 The Assignment of Account 6564 Amortisation Expense Intangible	
3.7 The Assignment of Customer Operations Expense Accounts	
3.7.1 The Assignment of Account 6610 Marketing Expenses	
3.7.1.1 The Assignment of Account 6611 Product Management Expenses	
3.7.1.2 The Assignment of Account 6612 Sales Expenses	
3.7.1.3 The Assignment of Account 6613 Product Advertising Expenses	
3.7.1.4 The Assignment of Account 6614  Other Marketing Expenses	
3.7.2 The Assignment of Account 6620 Services Expenses	
3.7.2.1 The Assignment of Account 6621 Call Completion Services Expenses	
3.7.2.2 The Assignment of Account 6622 Number Services Expenses	
3.7.2.3 The Assignment of Account 6623 Customer Services Expenses	
3.8 The Assignment of Corporate Operations Expense Accounts	
3.8.1 The Assignment of Account 6710 Executive and Planning Expenses	
3.8.2 The Assignment of Account 6720 General and Administrative Expenses	
3.8.2.1 The Assignment of Account 6721 Accounting and Finance Expenses	
3.8.2.2 The Assignment of Account 6722 External Relations Expenses	
3.8.2.3 The Assignment of Account 6723 Human Resources Expenses	
3.8.2.4 The Assignment of Account 6724 Information Management Expenses	
3.8.2.5 The Assignment of Account 6725 Legal Expenses	
3.8.2.6 The Assignment of Account 6726 Procurement Expenses	
3.8.2.7 The Assignment of Account 6728 Other General and Administrative Expenses	
3.9 The Assignment of Operating Taxes Expense Accounts	
3.9.1 The Assignment of Account 7230 Municipal Taxes Expenses	
3.9.2 The Assignment of Account 7240 Gross Receipts Tax Expenses	
3.9.3 The Assignment of Account 7250 Regulatory Tax Expenses	
3.10 The Assignment of Non Operating Expense Accounts	
3.10.1 The Assignment of Account 7510 Interest on Funded Debt	
3.10.2 The Assignment of Account 7540 Other Interest	
4. THE ASSIGNMENT OF REVENUES AND OTHER INCOME	
4.1 Introduction	
4.2 The Assignment of Revenues and Other Income	
4.2.1 The Assignment of Account 5000 Local Network Services Revenues	
4.2.1.1 The Assignment of Account 5001 Local Service Revenue	
4.2.1.2 The Assignment of Account 5003 Cellular Mobile Service Revenue	
4.2.1.3 The Assignment of Account 5050 Customer Premises Revenues	
4.2.1.4 The Assignment of Account 5060 Other Local Exchange Revenue	
4.2.2 The Assignment of Account 5100 Toll Network Services Revenue	
4.2.2.1 The Assignment of Account 5110  Toll Service Revenue	
4.2.2.2 The Assignment of Account 5126 Switched Data Service Revenue	
4.2.2.3 The Assignment of Account 5128 Private Network Service Revenue	
4.2.3 The Assignment of Account 5200 Other Operating Revenues	
4.2.3.1 The Assignment of Account 5230 Directory Revenue	
4.2.3.2 The Assignment of Account 5240 Leased Facilities Revenue	
4.2.3.3 The Assignment of Account 5250 Corporate Operations Revenue	
4.2.3.4 The Assignment of Account 5262 Customer Operations Revenue	
4.2.3.5 The Assignment of Account 5263 Plant Operations Revenue	
4.2.3.6 The Assignment of Account 5264 Other Miscellaneous Revenue	
4.2.3.7 The Assignment of Account 5270 Billing and Collection Revenue	
4.2.4 The Assignment of Account 5300 Uncollectible Revenue	
4.2.4.1 The Assignment of Account 5301 Uncollectible Revenue Telecom	
4.2.4.2 The Assignment of Account 5302 Uncollectible Revenue Other	
4.2.5 The Assignment of Account 7100 Other Operating Income	
4.2.5.1 The Assignment of Account 7110 Income from Custom Work	
4.2.5.2 The Assignment of Account 7150 Gains and Losses from Disposition of Land	
4.2.5.3 The Assignment of Account 7160 Other Operating Gains and Losses	
4.2.6 The Assignment of Account 7300 Non Operating Income	
4.2.6.1 The Assignment of Account 7320 Interest Income	
4.2.6.2 The Assignment of Account 7350 Gains and Losses from Disposition.	
4.2.6.3 The Assignment of Account 7360 Other Non Operating Gains and Losses	
5. THE AVERAGE NET INVESTED BASE (ANIB)	
5.1 Introduction	
5.2 The Assignment of Working Capital	
5.3 The Assignment of Plant Under Construction	
5.4 The Assignment of Net Plant Investment	
6. PRESENTATION OF COSTING RESULTS	
7. CALCULATION OF THE CONTRIBUTION REQUIREMENT	
8. CALCULATION OF THE CARRIER ACCESS TARIFF (CAT)	
8.1 The Contribution Component.	
8.2 The Switching and Aggregation Component.	
8.3 The Equal Access Component.	
9. DEVELOPMENT OF THE SPLIT RATE BASE	
9.1 The Utility Segment	
9.2 The Competitive Segment	
9.3 Presentation of Split Rate Base Results	
10. THE TRAFFIC STUDY METHODOLOGY	
10.1 The Busy Season.	
10.2 The Busy Hours in the Busy Season.	
10.3 The Average Busy Hour.	
10.4 The Toll Traffic Ratio.	

List of Tables

Table 2-1:  Assignment Summary Asset Accounts	
Table 3-1:  Assignment Summary Plant Specific Operations Expense Accounts	
Table 3-2:  Assignment Summary Plant Non Specific Operations Expenses	
Table 3-3:  Assignment Summary Customer Operations Expense Accounts	
Table 3-4:  Assignment Summary Corporate and Other Expenses	
Table 4-1:  Assignment Summary Revenues and Other Income	
Table 6-1:  Presentation of Costing Results Income Statement	
Table 6-2:  Presentation of Costing Results ANIB	
Table 7-1:  Presentation of Results Calculation of Contribution Requirement Common Assigned	
Table 7-2:  Presentation of Results Calculation of Contribution Requirement Terminal and Cellular Removed	
Table 9-1:  Presentation of Results Income Statement Split Rate Base	
Table 9-2: Presentation of Results ANIB Split Rate Base	

1.	INTRODUCTION
The purpose of this Procedures Manual is to document the methodology used at Ontario Northland Telecommunications (O.N. Tel) to carry out the following:
•	Assign the company’s historical revenues, expenses and investments to defined Broad Service Categories (BSC’s) in accordance with the Commission’s Phase III principles;
•	Develop a Contribution Requirement;
•	Develop a Carrier Access Tariff (CAT); and
•	Split the company’s Rate Base into Utility and Competitive segments.
1.1	The Structure of this Manual
This Procedures Manual is structured as follows:
•	Section 1 INTRODUCTION (this section).
•	Section 2 THE ASSIGNMENT OF INVESTMENTS.
•	Section 3 THE ASSIGNMENT OF EXPENSES.
•	Section 4 THE ASSIGNMENT OF REVENUES AND OTHER INCOME.
•	Section 5 THE AVERAGE NET INVESTED BASE (ANIB).
•	Section 6 PRESENTATION OF COSTING RESULTS.
•	Section 7 CALCULATION OF THE CONTRIBUTION REQUIREMENT.
•	Section 8 CALCULATION OF THE CARRIER ACCESS TARIFF (CAT).
•	Section 9 DEVELOPMENT OF THE SPLIT RATE BASE.
•	Section 10 THE TRAFFIC STUDY METHODOLOGY.
1.2	Overview of the O.N. Tel Costing Methodology
The purpose of the O.N. Tel. Costing methodology is to identify the profitability of defined broad service categories on the basis of cost causality.  The method separates the historical costs and revenues of the company which are contained in investment, revenue and expense accounts, into defined Broad Service Categories (BSC’s) through the mechanism of direct, associated and study assignments. 
1.2.1	The Broad Service Categories (BSC’S)
The Broad Service Categories (BSC’s) to which the company’s revenues and costs are assigned are as follows:  Access, Local, Toll, Network Cellular, Network Other, Terminal, Other and Common.

These BSC’S are as defined by the Commission in Decisions 85-10 and 94-24 with some modifications as noted in the following subsections.
1.2.1.1	The Access BSC
The facilities related to the Access BSC include all costs associated with the provision by the company of an interconnecting facility between the customer premises and the serving Central Office (C.O.) including the interconnection and protection of the facility at the customer premises . The point of demarcation between the Access and Terminal BSC’s, for costing purposes, is the line protector located at the customer premises.
•	The interconnection and protection of the facility at the serving CO is included in the Local BSC. 
•	The company does provide a small number of Customer Premise Equipment on a monopoly basis  (e.g. two party lines, pay phones and inside wiring ) however these are assigned to the Terminal BSC since they are not considered material to the costing results.
•	The company does not provide any Customer Premise Equipment integral to the to the provision of Network Other ( e.g. competitive data and private line) services.  These are provided by O.N.T.C.
•	The costs associated with central office equipment required specifically to derive communications channels between a subscriber's premises in the exchange area and the central office location (e.g. concentrators) are included in the Local BSC.
1.2.1.2	The Local BSC
The Local BSC includes the costs associated with the provision of local telephone service.  Related facilities include switching and transmission equipment, outside plant (e.g. poles, cables ), buildings, as well as associated ancillary equipment (e.g. vehicles, test equipment, etc..).
1.2.1.3	The Toll BSC
The Toll BSC includes the costs associated with providing message toll services.  Related facilities are similar to those identified for the provision of local telephone service but are restricted to the toll message service equivalents.
1.2.1.4	The Network BSC
The Network BSC includes the costs associated with the provision of competitive data and private line services.  In addition, the costs associated with the delivery of Cellular services are included as a separate sub category.  Related facilities are similar to those identified for the provision of local telephone service but are restricted to the data and private line components.  In addition, cellular equipment (towers, RF) is included.
•	The company does not provide any Customer Premise Equipment integral to the to the provision of Network Other ( e.g. competitive data and private line) services.  These are provided by O.N.T.C.
1.2.1.5	The Terminal BSC
The Terminal BSC includes costs associated with the provision of leased single line telephone sets, key systems and PBX’s.
•	The company does provide a small number of Customer Premise Equipment on a monopoly basis (e.g. two party lines, pay phones and inside wiring ) however these are assigned to the Terminal BSC since they are not considered material to the costing results.
•	The company does not provide any Customer Premise Equipment integral to the to the provision of Network Other (e.g. competitive data and private line) services.  These are provided by O.N.T.C.
1.2.1.6	The Other BSC
The Other BSC includes the costs associated with activities which are not linked to the provision of a telecommunications service and which are not included in the other BSC’s (e.g. the provision of power distribution in remote areas).
1.2.1.7	The Common BSC
The Common BSC includes costs which do not have a causal link to a particular BSC and which are fixed.
1.2.2	The Assignment of Costs
The methodology assigns all investments and expenses on an annual basis and is based on the identification and assignment of historical causal costs:
•	The procedures identify the embedded costs due to, or causally related to, the provision of the defined BSC’s.
•	The Common BSC accumulates all fixed common costs.
•	The excess capacity costs of  facilities are assigned to the BSC’s on the basis of the assignment of the capacity in use.
•	Measures of traffic usage associated with the assignment of costs are made in the peak period.
The methodology used to assign the company’s costs to the BSC’s is detailed in terms of investments in Section 2 and in terms of expenses in Section 3.
1.2.3	The Assignment of Revenues
In many instances there is a direct relationship between the revenues contained in an account and a defined BSC.  However in some cases, due to the structure of the tariff associated with the service, there is a mismatch between the revenues assigned to a BSC and the costs it has accumulated.  For example, the costs associated with the provision of local telephone service are identified in the Access and Local BSC’s while most revenues are assigned to the Local BSC only.

As much as possible, revenues derived from bundled tariff offerings are assigned to the Phase III BSC which reflects the major assignment of costs.  Otherwise, the revenues are assigned to the BSC which best represents the nature of the service.

The methodology used to assign the company’s revenues to the BSC’s is detailed in Section 4.
1.2.4	Methods of Assignment
Three assignment methods are used to separate the accounts into the appropriate BSC’s:
•	Direct Assignment:  If an account is directly and completely linked to a BSC, the contents of the account are assigned directly to the BSC in question.
•	Associated Assignment:  If an account is not completely and directly linked to a BSC, but has a close and direct link to another account which has previously been assigned to the BSC’s, an associated assignment to the BSC’s is made based on the previous assignment of the associated account.
•	Study Assignment:  If an account cannot be assigned on a direct or associated basis, an activity or usage based study is undertaken in order to assign the account to the BSC’s.  The assignment flows directly from the results of the study.
1.2.5	O.N. Tel. Annual Study Requirements
The O.N. Tel. methodology assigns most accounts on the basis of direct or associated assignments as detailed in the sections which follow.  Four studies are however required to be undertaken on an annual basis:
•	The Local Switch Study (see Section 2.2.1).
•	The Circuit Utilisation Study (see Section2.2.2).
•	The Operations Activity Study (see Section 3.2.1).
•	The Marketing Study (see Section 3.2.2).
1.3	The Average Net Invested Base
The Average Net Invested Base is the company’s net investment in telecommunications plant, working capital and Plant Under Construction.  The ANIB is assigned to the BSC’s in order that certain expenses may be assigned to the BSC’s on the basis of the assignment of the ANIB as well as to permit the development of a rate of return on net invested assets for the BSC’s.

The company’s methodology for the assignment of the ANIB to the BSC’s is detailed in Section 5.
1.4	The Contribution Requirement
The company’s contribution requirement is the shortfall associated with the Access and Local BSC’s once the Common BSC costs have been assigned over the remaining BSC’s and Terminal and Network Cellular BSC results have been removed from the overall results.  The shortfall may be reduced if their is a surplus in the Other BSC.

The Contribution Requirement associated with the company’s local exchange areas is calculated as follows:
•	Allocate the Common BSC expenses across all other BSCs in proportion to the operating expenses previously assigned to the other BSCs, and allocate the Common BSC investment in proportion to the Average Net Invested Base (ANIB) of the other BSCs.
•	Remove all revenues, investment and expenses associated with cellular and terminal operations from the appropriate BSCs, and calculate the revised surplus/shortfall for the applicable BSCs.
•	Add the surplus/shortfall of the Access and Local BSCs.
•	If there is a surplus in the Other BSC, add it to the result of the previous step.
The company’s methodology for the calculation of the contribution requirement is detailed in Section 7.
1.5	The Carrier Access Tariff
The company’s Carrier Access Tariff (CAT) includes up to three components:
•	The Contribution component.
•	The Switching and Aggregation component.
•	The Equal Access component.
The company’s methodology for the calculation of the Carrier Access Tariff is detailed in Section 8.
1.5.1	The Contribution Component
The contribution component of the CAT is applicable to traffic originating and terminating in the company’s local exchange areas.  The contribution component is calculated by dividing the contribution requirement by the total number of real and equivalent message toll minutes originating and terminating in the company’s local exchanges.
1.5.2	The Switching and Aggregation Component
The switching and aggregation component of the CAT is applicable to all message toll traffic originating and terminating in the company’s serving area over the company’s facilities.  The switching and aggregation component is calculated by dividing the causal costs associated with providing the switching and aggregation service by total number of real and equivalent message toll minutes originating and terminating in the company’s serving area.

The causal costs include direct costs associated with the use of the company’s plant resources and direct expenses, and indirect and variable common costs applied to the identified direct costs.  The details of the methodology associated with calculating this CAT component is not contained in this Procedures Manual.  It is detailed in the company’s Procedures Manual for Economic Studies and Resource Cost Studies.
1.5.3	The Equal Access Component.
The equal access component of the CAT is applicable to all message toll traffic originating and terminating in the company’s serving area over the company’s facilities.  The equal access component is calculated by amortising the equal access costs identified in the company’s investment accounts over a period of 10 years and dividing this amount by the total number of real and equivalent message toll minutes originating and terminating in the company’s serving area.
1.6	The Split Rate Base
The Split Rate Base consists of two segments:
•	The Utility Segment.
•	The Competitive Segment.
The Utility segment encompasses the Access, Local and Other BSC’s.  The Competitive segment encompasses the Toll, Network Cellular, Network Other, and Terminal BSC’s.

The company’s methodology for the calculation of the Split Rate Base is detailed in Section 9.

2.	THE ASSIGNMENT OF INVESTMENTS
2.1	Introduction
This section describes the method used to assign the plant investment accounts to the defined BSC’s.  The company’s investment accounts are structured into six summary account categories as follows:
•	Account 2100 General Support.
•	Account 2200 Central Office Equipment.
•	Account 2300 Station Apparatus.
•	Account 2400 Cables and Pole Lines.
•	Account 2500 Cellular.
•	Account 2600 Amortisable Assets.
2.2	Summary of Assignments
All investment accounts are assigned on a direct or associated basis with the exception of certain accounts which are assigned on the basis of the Circuit Utilisation and Local Switch Studies.  Table 2-1 on page 2-3 provides a summary of the investment account assignments to the defined BSC’s.  The Circuit Utilisation and Local Switch studies are described in the subsections which follow.
2.2.1	The Local Switch Study
The Local Switch Study determines, on an annual basis, the proportional use of the company’s Local Switches in terms of toll and local message traffic.
•	Local switch investment associated with subscriber line cards are assigned to the Local BSC.
•	The remainder of the local switch investment is considered joint use and traffic sensitive and assigned to the Toll and Local BSC’s on the basis of traffic use.
The methodology used for the computation of the traffic use ratios is detailed in Section 10.
2.2.2	The Circuit Utilisation Study
The Circuit Utilisation Study determines, on an annual basis, the proportional use of the company’s inter exchange network in terms of equivalent voice circuits and circuit kilometres by:
•	Message Toll circuits (assigned to the Toll BSC).
•	Private Line and Data circuits (assigned to the Network Other BSC).
•	Broadcast circuits (assigned to the Network Other BSC).
•	Extended Area Service (EAS) circuits (assigned to the Local BSC).
The Study is based on the segmentation of the company’s inter exchange network into 25 cross sections.  At each cross section, the circuit use of the cross section is determined in terms of the following technologies:
•	Analogue Radio.
•	Digital Radio.
•	LD-1.
•	Fibre Optic Transmission Systems (FOTS).
•	Satellite.
Circuit utilisation ratios by technology are developed on a company wide basis which are used to assign the applicable investment account to the BSC’s.

Table 2-1:  Assignment Summary Asset Accounts
	Table 2-1:  ASSIGNMENT SUMMARY ASSET ACCOUNTS											
				BROAD SERVICE CATEGORIES								
Summary Account	Account #	Account Description	METHOD	ACCESS	LOCAL	TOLL	NETWORK 		TERMINAL	COMMON	OTHER	
2100-GENERAL SUPPORT							Cellular	Other				
2111-LAND	072-110	LAND - Exchange	Associated		Note 1	Note 1						
	072-111	LAND - Toll	Associated			Note 1		Note 1				
2121-BUILDINGS & TOWERS	072-120	BUILDINGS & TOWERS - Exchange	Associated		Note 8	Note 8						
	072-122	BUILDINGS & TOWERS - Toll	Associated			Note 2		Note 2				
	072-123	BUILDINGS & TOWERS - Other	Associated	Note 3	Note 3	Note 3		Note 3			Note 3	
2122-FURNITURE & OFFICE EQU'T	072-130	FURNITURE & OFFICE EQUIPMENT	Direct							Total		
2124-COMPUTERS	072-140	COMPUTERS GENERAL	Direct							Total		
	072-141	COMPUTERS TOLL PROCESSING	Direct			Total						
2112-MOTOR VEHICLES	072-150	MOTOR VEHICLES	Associated	Note 4	Note 4	Note 4	Note 4	Note 4	Note 4			
	072-151	SPECIAL PURPOSE VEHICLES	Associated	Note 3	Note 3	Note 3		Note 3				
2116-TOOLS & TEST EQU'T	072-160	POWER TOOLS	Associated	Note 6	Note 6	Note 6	Note 6	Note 6				
	072-161	COE TOOLS & PORTABLE TEST EQPT	Associated	Note 7	Note 7	Note 7	Note 7	Note 7	Note 7			
2300-STATION APPARATUS												
2310-STATION APPARATUS	072-310	STATION APPARATUS OTHER	Direct						Total			
2200-COE EQUIPMENT												
2210-COE SWITCHING 	072-210	COE SWITCHING EQUIPMENT- Exchange	Study		Note 9	Note 9						
	072-211	COE SWITCHING  EQUIPMENT- Toll	Direct			Total						
	072-212	COE SWITCHING SOFTWARE- Exchange	Associated		Note 10	Note 10						
	072-213	COE SWITCHING SOFTWARE- Toll	Direct			Total						
	072-214	COE SWITCHING - Data	Direct					Total				
2230-COE TRANSMISSION OTHER	072-230	COE TRANSMISSION OTHER - Exchange	Direct		Total							
	072-231	COE TRANSMISSION OTHER - Toll	Study		Note 5	Note 5		Note 5				
2240-COE TRANSMISSION RADIO	072-240	COE TRANSMISSION RADIO - Exchange	Direct	Total								
	072-241	COE TRANSMISSION RADIO - Toll	Study		Note 5	Note 5		Note 5				
	072-242	COE TRANSMISSION SATELLITE - Toll	Direct			Total						
2250-COE COMMON & POWER	072-250	COE COMMON & POWER - Exchange	Associated		Note 11	Note 11						
	072-251	COE COMMON & POWER - Toll	Study		Note 5	Note 5		Note 5				
2260-COE BROADCAST	072-260	COE  BROADCAST	Direct					Total				
2270-COE FOTS	072-270	COE FOTS - Exchange	Direct		Total							
	072-271	COE FOTS - Toll	Study		Note 5	Note 5		Note 5				

2400-CABLES AND POLE LINES												
2410-CABLES AND POLE LINES	072-410	CABLES & POLE LINE - Exchange	Direct	Total								
	072-411	CABLES & POLE LINE - Toll	Study		Note 5	Note 5		Note 5				
2420-FIBRE CABLE	072-420	FIBRE CABLE - Exchange	Direct	Total								
	072-421	FIBRE CABLE - Toll	Study		Note 5	Note 5		Note 5				
2430-CABLE AND POLE LINE POWER	072-430	CABLE AND POLE LINE POWER	Direct								Total	
2500-CELLULAR												
2510-CELLULAR	072-510	CELLULAR	Direct				Total					
2600-AMORTISABLE ASSETS												
2680-AMORTISABLE TANGIBLE ASSETS	072-680	EQUAL ACCESS	Direct		Total							
2690-AMORTISABLE INTANGIBLE ASSETS	072-690	INTANGIBLES	Direct							Total		
												
Notes:												
1.  Associated assignment based on the assignment of Buildings & Towers Toll investment for Toll account and Buildings and Towers Exchange investment for Exchange account.	
2.  Associated assignment based on the assignment of COE equipment to the Toll and Network BSC's..	
3.  Associated assignment based on the assignment of Cables and Pole Lines investment..	
4.  Associated assignment based on the assignment of Total Plant Specific Salaries and Wages and Marketing Salaries and Wages.	
5.  Assignment on the basis of the Circuit Utilization Study	
6.  Associated assignment based on the assignment of  Plant Operations Outside Plant salaries and wages	
7.  Associated assignment based on the assignment of  Plant Operations COE and Terminal Equipment Salaries and Wages	
8.  Associated assignment based on the assignment of  COE Exchange accounts	
9.  Study assignment based on the Local Switching Study	
10.  Associated assignment based on the assignment of Switching Equipment Exchange investment	
11.  Associated assignment based on the assignment of Switching Equipment Exchange and COE Transmission Other Exchange investment	

2.3	The Assignment of Account 2100 General Support 
The General Support accounts contain the company’s investment in general plant support assets and equipment in the following six summary accounts:
•	Account 2111 Land.
•	Account 2112 Motor Vehicles.
•	Account 2116 Tools and Test Equipment.
•	Account 2121 Buildings and Towers.
•	Account 2122 Furniture and Office Equipment.
•	Account 2124 Computers. 
2.3.1	The Assignment of Account 2111 Land.
The Land account contains the company’s investment in land assets.  The summary account contains two accounts as follows:
•	Account 072-110 Land Exchange.
•	Account 072-111 Land Toll.
The Land accounts are structured so as to identify whether the land is located in the company’s local exchange network (“exchange” account) or in the company’s inter exchange network (“toll” account).
•	The Land Exchange account is assigned to the BSC’s in the same proportion as the assignment of Building and Towers Exchange investment to the BSC’s.
•	The Land Toll account is assigned to the BSC’s in the same proportion as the assignment of the Buildings and Towers Toll investment to the BSC’s.
2.3.2	The Assignment of Account 2112 Motor Vehicles.
The Motor Vehicles account contains the company’s investment in motor vehicles and special purpose vehicles.  The summary account contains two accounts as follows:
•	Account 072-150 Motor Vehicles.
•	Account 072-151 Special Purpose Vehicles.
The accounts are assigned to the BSC’s as follows:
•	The Motor Vehicles account is assigned to the BSC’s in the same proportion as the assignment of Total Plant Operations Salaries and Wages and Marketing Salaries and Wages to the BSC’s (see Section 3.3 for the assignment of Plant Operations Salaries and Wages and Section 3.7 for the assignment of Marketing Salaries and Wages).
•	The Special Purpose Vehicles account is assigned to the BSC’s in the same proportion as the assignment of Cables and Pole Lines investment accounts (see Section 2.6.3 for the assignment of Cables and Pole Lines investment).
2.3.3	The Assignment of Account 2116 Tools and Test Equipment.
The Tools and Test Equipment account contains the company’s investment in power tools and COE tools and portable test equipment..  The summary account contains two accounts as follows:
•	Account 072-160 Power Tools.
•	Account 072-161 COE Tools and Portable Test Equipment.
The accounts are assigned to the BSC’s as follows:
•	The Power Tools account is assigned to the BSC’s in the same proportion as the assignment of Cables and Poles Lines Operations Salaries and Wages (see Section 3.3 for the assignment of Plant Operations Salaries and Wages).
•	The COE Tools and Portable Test Equipment account is assigned to the BSC’s in the same proportion as the assignment of COE and Terminal Equipment Operations Salaries and Wages (see Section 3.3 for the assignment of Plant Operations Salaries and Wages).
2.3.4	The Assignment of Account 2121 Buildings and Towers.
The Buildings and Towers account contains the company’s investment in buildings and towers.  The summary account contains three accounts as follows:
•	Account 072-120 Buildings and Towers Exchange.
•	Account 072-121 Buildings and Towers Toll
•	Account 072-122 Building and Towers Other.
The Buildings and Towers accounts are structured so as to identify whether the plant is used in the company’s local exchange network (“exchange” account) or in the company’s inter exchange network (“toll” accounts).  In addition a Buildings and Towers Other account contains the company’s investment in warehouse facilities used to store outside plant equipment.
•	The Building and Towers Exchange account is assigned to the BSC’s in the same proportion as the assignment of COE Exchange investment accounts to the BSC’s.
•	The Buildings Toll account is assigned to the BSC’s in the same proportion as the assignment of COE Toll investment accounts to the BSC’s.
•	The Buildings and Towers Other account is assigned to the BSC’s in the same proportion as the assignment of the Cables and Pole Lines investment accounts to the BSC’s.
2.3.5	The Assignment of Account 2122 Furniture and Office Equipment.
The Furniture and Office Equipment account contains the company’s investment in furniture and office equipment. The summary account contains one account of the same name.
•	Account 072-130 Furniture and Office Equipment is assigned directly to the Common BSC.
2.3.6	The Assignment of Account 2124 Computers.
The Computer account contains the company’s investment in general purpose computers and computers used for toll processing.  The summary account contains two accounts as follows:
•	Account 072-140 Computers General.
•	Account 072-141 Computers Toll Processing.
The accounts are assigned to the BSC’s as follows:
•	The Computers General account is assigned directly to the Common BSC.
•	The Computers Toll Processing account is assigned directly to the Toll BSC.
2.4	The Assignment of Account 2200 Central Office Equipment
The Central Office Equipment (COE) accounts contain the company’s investment in switching and transmission plant in the following six summary accounts:
•	Account 2210 COE Switching Equipment.
•	Account 2230 COE Transmission Other.
•	Account 2240 COE Transmission Radio.
•	Account 2250 COE Common and Power.
•	Account 2260 COE Broadcast.
•	Account 2270 COE Fibre Optic Transmission Systems (FOTS).
2.4.1	The Assignment of Account 2210 COE Switching Equipment
The COE Switching account contains the company’s investment in switching equipment and software.  The summary account contains the following six accounts:
•	Account 072-210 COE Switching Equipment Exchange.
•	Account 072-211 COE Switching Equipment Toll.
•	Account 072-212 COE Switching Software Exchange.
•	Account 072-213 COE Switching Software Toll.
•	Account 072-214 COE Switching Data.
COE Switching accounts are structured so as to identify whether the plant is used in a local exchange (“exchange” accounts) or a toll exchange (“toll” accounts).  The one exception is the COE Switching Data account which contains equipment dedicated to the switching of data traffic.
•	The COE Switching Equipment Exchange account is assigned to the BSC’s on the basis of the Local Switch Study.
•	The COE Switching Software Exchange account is assigned to the BSC’s in the same proportion as the assignment of the COE Switching Equipment Exchange account.
•	The COE Switching Equipment Toll and COE Switching Software Toll accounts are assigned directly to the Toll BSC.
•	The COE Switching Data account is assigned directly to the Network Other BSC.
2.4.2	The Assignment of Account 2230 COE Transmission Other
COE Transmission Other account contains the company’s investment in transmission equipment, with the exception of FOTS, Radio and Broadcast equipment. The summary account contains the following two accounts:
•	Account 072-230 COE Transmission Other Exchange.
•	Account 072-231 COE Transmission Other Toll.
The COE Transmission Other accounts are structured so as to identify whether the plant is used in a local exchange (“exchange” account) or in the company’s inter exchange network (“toll” account).
•	The COE Transmission Exchange account is assigned directly to the Local BSC.
•	The COE Transmission Toll account is assigned to the BSC’s on the basis of the Circuit Utilisation Study.
2.4.3	The Assignment of Account 2240 COE Transmission Radio
The COE Transmission Radio account contains the company’s investment in microwave, satellite and radio transmission equipment.  The summary account contains three accounts as follows:
•	Account 072-240 COE Transmission Radio Exchange.
•	Account 072-241 COE Transmission Radio Toll.
•	Account 072-242 Satellite.
COE Transmission Radio accounts are structured so as to identify whether the plant is used in a local exchange (“exchange” account) or in the company’s inter exchange network (“toll” account).  The one exception is the Satellite account which contains the company’s investment in satellite earth facilities.
•	The COE Transmission Radio Exchange account is assigned directly to the Access BSC.
•	The COE Transmission Radio Toll account is assigned to the BSC’s on the basis of the Circuit Utilisation Study.
•	The COE Transmission Satellite account is assigned to the BSC’s on the basis of the Circuit Utilisation Study.
2.4.4	The Assignment of Account 2250 COE Common and Power
The COE Common and Power account contains the company’s investment in COE power and common equipment.  The summary account contains two accounts as follows:
•	Account 072-250 COE Common and Power Exchange.
•	Account 072-251 COE Common and Power Toll.
The COE Common and Power accounts are structured so as to identify whether the plant is used in a local exchange (“exchange” account) or in the company’s inter exchange network (“toll” account).
•	The COE Common and Power Exchange account is assigned to the BSC’s in the same proportion as the assignment of COE Switching Exchange and COE Transmission Other Exchange investment accounts.
•	The COE Common and Power Toll account is assigned to the BSC’s on the basis of the Circuit Utilisation Study.
2.4.5	The Assignment of Account 2260 COE Broadcast
The COE Transmission Broadcast account contains the company’s investment in dedicated broadcast transmission equipment.  The summary account contains one account of the same name.
•	Account 072-260 COE Broadcast is directly assigned to the Network Other BSC.
2.4.6	The Assignment of Account 2270 COE FOTS
The COE FOTS account contains the company’s investment in fibre optic transmission system equipment.  The summary account contains two accounts as follows:
•	Account 072-270 COE FOTS Exchange.
•	Account 072-271 COE FOTS Toll.
The COE FOTS accounts are structured so as to identify whether the plant is used in a local exchange (“exchange” account) or in the company’s inter exchange network (“toll” account).
•	The COE FOTS Exchange account is assigned directly to the Local BSC.
•	The COE FOTS Toll account is assigned to the BSC’s on the basis of the Circuit Utilisation Study.
2.5	The Assignment of Account 2300 Station Apparatus 
The Station Apparatus account contains the company’s investment in single line and multi line Customer Premises Equipment (CPE).The account contains one account, Account 2310 Station Apparatus Other.
2.5.1	The Assignment of Account 2310 Station Apparatus Other
The Station Apparatus Other summary account contains one account of the same name.
•	Account 072-310 Station Apparatus Other is assigned directly to the Terminal BSC.
2.6	The Assignment of Account 2400 Cables and Pole Lines 
The Cable and Pole Lines accounts contain the company’s investment in pole lines and cables. Cables and Pole Lines investment is contained the following three summary accounts:
•	Account 2410 Cables and Pole Lines.
•	Account 2420 Fibre Cable.
•	Account 2430 Cable and Pole Line Power.
2.6.1	The Assignment of Account 2410 Cables and Pole Lines
The Cable and Pole Lines account contains the company’s investment in pole lines and cable with the exception of fibre cable and pole lines and cable used for power transmission..  The Cable and Pole Lines summary account contains two accounts as follows:
•	Account 072-410 Cables and Pole Lines Exchange.
•	Account 072-411 Cables and Pole Lines Toll.
The accounts are structured so as to identify whether the plant is used in a local exchange (“exchange” account) or in the company’s inter exchange network (“toll” accounts).
•	The Cable and Pole Lines Exchange account is assigned directly to the Access BSC.
•	The Cable and Pole Lines Toll account is assigned to the BSC’s on the basis of the Circuit Utilisation Study.
2.6.2	The Assignment of Account 2420 Fibre Cable
The Fibre Cable account contains the company’s investment in fibre cable.  The summary account contains two accounts as follows:
•	Account 072-420 Fibre Cable Exchange.
•	Account 072-421 Fibre Cable Toll.
The Fibre Cable accounts are structured so as to identify whether the plant is used in a local exchange (“exchange” account) or in the company’s inter exchange network (“toll” account).
•	The Fibre Cable Exchange account is assigned directly to the Access BSC.
•	The Fibre Cable Toll account is assigned to the BSC’s on the basis of the Circuit Utilisation Study.
2.6.3	The Assignment of Account 2430 Cables and Pole Lines Power
The Cables and Pole Lines Power account contains the company’s investment in cable and pole lines used for the transmission of power.  The summary account contains one account of the same name.
•	Account 072-430 Cables and Pole Lines Power is assigned directly to the Other BSC.
2.7	The Assignment of Account 2500 Cellular
The Cellular account contains the company’s investment in cellular equipment.  The account contains one summary account, Account 2510 Cellular.
2.7.1	The Assignment of Account 2510 Cellular
The Cellular summary account contains one account of the same name.
•	Account 072-510 is assigned directly to the Network Cellular BSC.
2.8	The Assignment of Account 2600 Amortisable Assets
The Amortisable Assets account contains the company’s investment in amortisable tangible and intangible assets.. The account contains the following two summary accounts:
•	Account 2680 Amortisable Tangible Assets.
•	Account 2690 Amortisable Intangible Assets.
2.8.1	The Assignment of Account 2680 Amortisable Tangible Assets
The Amortisable Tangible Assets account contains the company’s investment associated with amortisable equal access expenditures.  The summary account contains Account 072-680 Equal Access.
•	The Equal Access account is assigned directly to the Local BSC.
2.8.2	The Assignment of Account 2690 Amortisable Intangible Assets
The Amortisable Intangible Assets account contains the company’s investment in intangible property.  The summary account contains one account , Account 072-690 Intangibles.
•	The Intangibles account is assigned directly to the Common BSC.

3.	THE ASSIGNMENT OF EXPENSES
3.1	Introduction
This section describes the method used to assign expenses to the defined Broad Service Categories (BSC’s).  The company’s expense accounts are structured into eight summary categories.
•	Plant Operations Expenses
•	Network Operations Expenses.
•	Access Expenses.
•	Depreciation and Amortisation Expenses.
•	Customer Operations Expenses.
•	Corporate Operations Expenses.
•	Operating Taxes.
•	Non Operating Expenses.
3.2	Summary of Assignments
All expenses accounts are assigned on a direct or associated basis with the exception of certain accounts which are assigned on the basis of the Operations Activity Study and the Marketing Study.  These studies are described in the following subsections.

Summaries of the assignment of expenses to the BSC’s are provided in the following Tables:
•	Plant Operations Expenses in Table 3-1 (page 3-4) and Table 3-2 page (3-10).
•	Network Operations Expenses in Table 3-2 (page 3-10).
•	Access Expenses in. in Table 3-2 (page 3-10).
•	Depreciation and Amortisation Expenses in. Table 3-2 (page 3-10).
•	Customer Operations Expenses in. Table 3-3 (page 3-15).
•	Corporate Operations Expenses in Table 3-4 (page 3-17).
•	Operating Taxes in Table 3-4 (page 3-17)..
•	Non Operating Expenses in Table 3-4 (page 3-17).
3.2.1	The Operations Activity Study
The Operations Activity Study determines, on an annual basis, the activity of the company’s technical operations personnel on a percentage basis in terms of the following:
•	Single Line and Multiline Station Apparatus (assigned to the Terminal BSC).
•	Radio and Data Station Apparatus (costs not assigned to any BSC).
•	Outside Plant Exchange (assigned to the Access BSC).
•	Outside Plant Toll (assigned to the BSC’s on the basis of the results of the Circuit Utilisation Study).
•	Switching Exchange (assigned to the BSC’s on the basis of the results of the Local Switching Study).
•	Switching Toll (assigned to the Toll BSC).
•	Switching Data (assigned to the Network Other BSC).
•	COE Transmission Exchange (assigned to the Local BSC).
•	COE Transmission Toll (assigned to the BSC’s on the basis of the results of the Circuit Utilisation Study).
•	COE Common and Power Exchange (assigned to the BSC’s on the basis of the assignment of COE Common and Power Exchange investment to the BSC’s).
•	COE Common and Power Toll (assigned to the BSC’s on the basis of the results of the Circuit Utilisation Study).
•	Cellular (assigned to the Network Cellular BSC).
The Study is based on the use of time sheets by technical operations personnel located in the following company cost centres:
•	Inside Plant Staff North Bay.
•	Toll Centre Timmins.
•	Toll Centre Cochrane.
•	Inside Plant Moosonee.
•	Inside Plant Timmins DMS-200.
•	Inside Plant Tech Services New Liskeard.
•	Inside Plant Temagami.
•	Inside Plant Cochrane.
•	Outside Plant.
All expense account assignments associated with salaries and materiel are made as a result of this Study on a cost centre specific basis.  The one exception is the Inside Plant Staff North Bay cost centre which contains only supervisory personnel.  This cost centre’s salaries and materiel costs are assigned on the basis of the weighted average assignment result of the other cost centres.
3.2.2	The Marketing Study
The Marketing Study determines, on an annual basis, the proportion of marketing expenses related to:
•	Local Services (assigned to the Local BSC).
•	Message Toll Services (assigned to the Toll BSC).
•	Private Line and Data Services (assigned to the Network Other BSC).
•	Cellular Services (assigned to the Network Cellular BSC).
•	Customer Premise Equipment (assigned to the Terminal BSC).
The Study is based on the analysis of invoices for the assignment of advertising expenses and the use of time sheets for the assignment of product management and sales expenses associated with the Marketing cost centre.

Table 3-1:  Assignment Summary Plant Specific Operations Expense Accounts
			Table 3-1:  ASSIGNMENT SUMMARY - Plant Specific Operations Expense Accounts												
							BROAD SERVICE CATEGORIES								
Account Group	Summary Account	Account	Subsidiary Record	Description	Cost Centre	METHOD	ACCESS	LOCAL	TOLL	NETWORK 		TERMINAL	COMMON	OTHER	
										Cellular	Other				
PLANT OPERATIONS	6110- NETWORK SUPPORT	6112-MOTOR VEHICLES	203	Repairs - Auto and Truck	Inside Plant Staff North Bay - 110										
			308	Gas and Minor Vehicle Repair	Inside Plant Staff North Bay - 110										
			603	Rentals-Vehicles	Inside Plant Staff North Bay - 110										
			903	Insurance Auto	Inside Plant Staff North Bay - 110										
					Subtotal Motor Vehicles	Associated	Note 1	Note 1	Note 1	Note 1	Note 1	Note 1			
		6116-WORK EQUIPMENT	501	Tools	Inside Plant Staff North Bay - 110										
					Inside Plant Moosonee - 123										
					Inside Plant Timmins DMS 200 - 125										
					Inside Plant Tech Services New Liskeard - 132										
					Inside Plant Temagami - 133										
					Inside Plant Cochrane - 134										
					Outside Plant - 141										
			505	Misc. Tools and Supplies	Inside Plant Temagami - 133										
					Outside Plant - 141										
			604	Rentals Equipment	Inside Plant Cochrane - 134										
					Outside Plant - 141										
					Subtotal Work Equipment	Associated	Note 1	Note 1	Note 1	Note 1	Note 1	Note 1			
	6120-GENERAL SUPPORT	6121-LAND AND BUILDINGS	261	Materials re:  buildings	Inside Plant Staff North Bay - 110	Associated		Note 4	Note 4		Note 4				
					Toll Centre Timmins - 121	Direct			Total						
					Toll Centre Cochrane - 122	Direct			Total						
					Inside Plant Moosonee - 123	Associated		Note 11	Note 11		Note 11				
					Inside Plant Timmins DMS 200 - 125	Associated		Note 2	Note 2		Note 2				
					Inside Plant Tech Services New Liskeard - 132	Associated		Note 2	Note 2		Note 2				
					Inside Plant Temagami - 133	Associated		Note 11	Note 11		Note 11				
					Inside Plant Cochrane - 134	Associated		Note 2	Note 2		Note 2				
					Outside Plant - 141	Associated	Note 3	Note 3	Note 3		Note 3				
			420	Water	Inside Plant Staff North Bay - 110	Associated	Note 4	Note 4	Note 4		Note 4				
			440	Heating	Inside Plant Staff North Bay - 110	Associated	Note 4	Note 4	Note 4		Note 4				
			605	Rentals Bldgs and Land	Inside Plant Moosonee - 123	Direct		Total							
			606	Rentals Railway Buildings	General - 500	Associated	Note 4	Note 4	Note 4		Note 4				
			611	Janitorial Services	Inside Plant Moosonee - 123	Associated		Note 11	Note 11		Note 11				
					Inside Plant Timmins DMS 200 - 125	Associated		Note 2	Note 2		Note 2				
					Inside Plant Tech Services New Liskeard - 132	Associated		Note 2	Note 2		Note 2				
					Inside Plant Temagami - 133	Associated		Note 11	Note 11		Note 11				
					Inside Plant Cochrane - 134	Associated		Note 2	Note 2		Note 2				
					Outside Plant - 141	Associated	Note 3	Note 3	Note 3		Note 3				
			277	Building Repairs	Inside Plant Staff North Bay - 110	Associated		Note 2	Note 2		Note 2				
					Inside Plant Moosonee - 123	Associated		Note 11	Note 11		Note 11				
					Inside Plant Timmins DMS 200 - 125	Associated		Note 2	Note 2		Note 2				
					Inside Plant Tech Services New Liskeard - 132	Associated		Note 2	Note 2		Note 2				
					Inside Plant Temagami - 133	Associated		Note 11	Note 11		Note 11				
					Inside Plant Cochrane - 134	Associated		Note 2	Note 2		Note 2				
					Outside Plant - 141	Associated	Note 3	Note 3	Note 3		Note 3				
			264	Maintenance Road and Property	Inside Plant Moosonee - 123	Associated		Note 12	Note 12						
					Inside Plant Timmins DMS 200 - 125	Associated			Note 5		Note 5				
					Inside Plant Temagami - 133	Associated		Note 12	Note 12						
					Inside Plant Cochrane - 134	Associated			Note 5		Note 5				
					Outside Plant - 141	Associated	Note 3	Note 3	Note 3		Note 3				
			658	Space/Pwr Rental NTL	General - 500	Associated		Note 6	Note 6		Note 6				
			659	Space/Pwr Rental Other	General - 500	Associated		Note 6	Note 6		Note 6				
			905	Insurance Buildings	General - 500	Associated	Note 4	Note 4	Note 4		Note 4				
			xxx	Right of Way ONTC	General - 500	Study		Note 7	Note 7		Note 7				
					Subtotal Land & Buildings										
		6122-FURNITURE & OFFICE EQUIPMENT	805	Furniture & fixtures	Inside Plant Staff North Bay - 110										
					Inside Plant Moosonee - 123										
					Inside Plant Timmins DMS 200 - 125										
					Inside Plant Temagami - 133										
					Outside Plant - 141										
			607	Rentals Copy Machine	Inside Plant Tech Services New Liskeard - 132										
					Subtotal Furniture & Office Equipment	Direct							Total		
		6124-GENERAL PURPOSE COMPUTERS	890	Computer Software											
					Subtotal General Purpose Computers	Direct							Total		
	6200-COE	6210-COE SWITCHING	260	Material	Inside Plant Staff North Bay - 110	Study		Note 7	Note 7		Note 7				
					Inside Plant Moosonee - 123	Study		Note 7	Note 7		Note 7				
					Inside Plant Timmins DMS 200 - 125	Study		Note 7	Note 7		Note 7				
					Inside Plant Tech Services New Liskeard - 132	Study		Note 7	Note 7		Note 7				
					Inside Plant Temagami - 133	Study		Note 7	Note 7		Note 7				
					Inside Plant Cochrane - 134	Study		Note 7	Note 7		Note 7				
					Outside Plant - 141	Study		Note 7	Note 7		Note 7				
			646	DMS200/10 Equt Services	Inside Plant Moosonee - 123	Associated		Note 13	Note 13						
					Inside Plant Timmins DMS 200 - 125	Direct			Total						
					Inside Plant Temagami - 133	Associated		Note 13	Note 13						
			1	Salaries and Wages	Inside Plant Staff North Bay - 110	Study		Note 7	Note 7		Note 7				
					Inside Plant Moosonee - 123	Study		Note 7	Note 7		Note 7				
					Inside Plant Timmins DMS 200 - 125	Study		Note 7	Note 7		Note 7				
					Inside Plant Tech Services New Liskeard - 132	Study		Note 7	Note 7		Note 7				
					Inside Plant Temagami - 133	Study		Note 7	Note 7		Note 7				
					Inside Plant Cochrane - 134	Study		Note 7	Note 7		Note 7				
					Outside Plant - 141	Study		Note 7	Note 7		Note 7				
					Subtotal COE Switching										
		6220-OPERATOR SYSTEMS	260	Material	Toll Centre Timmins - 121										
					Toll Centre Cochrane - 122										
					Subtotal	Direct			Total						
					Subtotal COE Switching										
		6230-COE TRANSMISSION 	260	Material	Inside Plant Staff North Bay - 110	Study		Note 7	Note 7		Note 7				
					Inside Plant Moosonee - 123	Study		Note 7	Note 7		Note 7				
					Inside Plant Timmins DMS 200 - 125	Study		Note 7	Note 7		Note 7				
					Inside Plant Tech Services New Liskeard - 132	Study		Note 7	Note 7		Note 7				
					Inside Plant Temagami - 133	Study		Note 7	Note 7		Note 7				
					Inside Plant Cochrane - 134	Study		Note 7	Note 7		Note 7				
					Outside Plant - 141	Study		Note 7	Note 7		Note 7				
			1	Salaries and Wages	Inside Plant Staff North Bay - 110	Study		Note 7	Note 7		Note 7				
					Inside Plant Moosonee - 123	Study		Note 7	Note 7		Note 7				
					Inside Plant Timmins DMS 200 - 125	Study		Note 7	Note 7		Note 7				
					Inside Plant Tech Services New Liskeard - 132	Study		Note 7	Note 7		Note 7				
					Inside Plant Temagami - 133	Study		Note 7	Note 7		Note 7				
					Inside Plant Cochrane - 134	Study		Note 7	Note 7		Note 7				
					Outside Plant - 141	Study		Note 7	Note 7		Note 7				
					Subtotal COE Tx										
		6240-COE COMMON & POWER	262	Generator Maintenance	Inside Plant Moosonee - 123	Associated		Note 14	Note 14						
					Inside Plant Cochrane - 134	Associated		Note 8	Note 8		Note 8				
			260	Material	Inside Plant Staff North Bay - 110	Study		Note 7	Note 7		Note 7				
					Inside Plant Moosonee - 123	Study		Note 7	Note 7		Note 7				
					Inside Plant Timmins DMS 200 - 125	Study		Note 7	Note 7		Note 7				
					Inside Plant Tech Services New Liskeard - 132	Study		Note 7	Note 7		Note 7				
					Inside Plant Temagami - 133	Study		Note 7	Note 7		Note 7				
					Inside Plant Cochrane - 134	Study		Note 7	Note 7		Note 7				
					Outside Plant - 141	Study		Note 7	Note 7		Note 7				
			1	Salaries and Wages	Inside Plant Staff North Bay - 110	Study		Note 7	Note 7		Note 7				
					Inside Plant Moosonee - 123	Study		Note 7	Note 7		Note 7				
					Inside Plant Timmins DMS 200 - 125	Study		Note 7	Note 7		Note 7				
					Inside Plant Tech Services New Liskeard - 132	Study		Note 7	Note 7		Note 7				
					Inside Plant Temagami - 133	Study		Note 7	Note 7		Note 7				
					Inside Plant Cochrane - 134	Study		Note 7	Note 7		Note 7				
					Outside Plant - 141	Study		Note 7	Note 7		Note 7				
					Subtotal COE Common and Power										
	6400-POLE LINES AND CABLE	6410-POLE LINES & CABLE	655	Joint Use of Poles	Inside Plant Staff North Bay - 110										
					Outside Plant - 141										
					Subtotal	Associated	Note 9	Note 9	Note 9		Note 9				
			1	Salaries and Wages	Inside Plant Staff North Bay - 110	Study		Note 7	Note 7		Note 7				
					Inside Plant Moosonee - 123	Study		Note 7	Note 7		Note 7				
					Inside Plant Timmins DMS 200 - 125	Study		Note 7	Note 7		Note 7				
					Inside Plant Tech Services New Liskeard - 132	Study		Note 7	Note 7		Note 7				
					Inside Plant Temagami - 133	Study		Note 7	Note 7		Note 7				
					Inside Plant Cochrane - 134	Study		Note 7	Note 7		Note 7				
					Outside Plant - 141	Study		Note 7	Note 7		Note 7				
			260	Material	Inside Plant Staff North Bay - 110	Study		Note 7	Note 7		Note 7				
					Inside Plant Moosonee - 123	Study		Note 7	Note 7		Note 7				
					Inside Plant Timmins DMS 200 - 125	Study		Note 7	Note 7		Note 7				
					Inside Plant Tech Services New Liskeard - 132	Study		Note 7	Note 7		Note 7				
					Inside Plant Temagami - 133	Study		Note 7	Note 7		Note 7				
					Inside Plant Cochrane - 134	Study		Note 7	Note 7		Note 7				
					Outside Plant - 141	Study		Note 7	Note 7		Note 7				
					Subtotal										
			267	Material Re; Outside Equipment	Inside Plant Moosonee - 123										
					Inside Plant Timmins DMS 200 - 125										
					Inside Plant Tech Services New Liskeard - 132										
					Inside Plant Temagami - 133										
					Inside Plant Cochrane - 134										
					Outside Plant - 141										
					Subtotal	Associated	Note 10	Note 10	Note 10		Note 10				
					Subtotal Pole lines and Cable										
	6300-STATION APPARATUS	6310-STATION APPARATUS	1	Salaries and Wages	Inside Plant Staff North Bay - 110										
					Inside Plant Moosonee - 123										
					Inside Plant Timmins DMS 200 - 125										
					Inside Plant Tech Services New Liskeard - 132										
					Inside Plant Temagami - 133										
					Inside Plant Cochrane - 134										
					Outside Plant - 141										
					Subtotal	Direct						Total			
			260	Material	Inside Plant Staff North Bay - 110										
					Inside Plant Moosonee - 123										
					Inside Plant Timmins DMS 200 - 125										
					Inside Plant Tech Services New Liskeard - 132										
					Inside Plant Temagami - 133										
					Inside Plant Cochrane - 134										
					Outside Plant - 141										
					Subtotal	Direct						Total			
	6450-CELLULAR	6451-CELLULAR	1	Salaries and Wages	Inside Plant Staff North Bay - 110										
					Inside Plant Moosonee - 123										
					Inside Plant Timmins DMS 200 - 125										
					Inside Plant Tech Services New Liskeard - 132										
					Inside Plant Temagami - 133										
					Inside Plant Cochrane - 134										
					Outside Plant - 141										
					Subtotal	Direct				Total					
			260	Material	Inside Plant Staff North Bay - 110										
					Inside Plant Moosonee - 123										
					Inside Plant Timmins DMS 200 - 125										
					Inside Plant Tech Services New Liskeard - 132										
					Inside Plant Temagami - 133										
					Inside Plant Cochrane - 134										
					Outside Plant - 141										
					Subtotal	Direct				Total					
				GRAND TOTAL PLANT SPECIFIC OPERATIONS EXPENSES											
Notes:	
1.  Associated assignment based on the assignment of Vehicles investment	
2.  Associated assignment based on the assignment of Toll Buildings investment	
3.  Associated assignment based on the assignment of Other Buildings investment.	
4.  Associated assignment based on the assignment of Total Buildings investment	
5.  Associated assignment based on the assignment of Land Toll investment.	
6.  Associated assignment based on the assignment of COE  Tx, Common and FOTS Toll investment	
7.  Assignment on the basis of the Activity Code Study	
8.  Associated assignment based on the assignment of COE Common and Power Toll investment	
9.  Associated assignment based on the assignment of Outside Plant investment	
10.  Associated assignment based on the assignment of Outside Plant salaries and wages	
11.  Associated assignment based on the assignment of Buildings Exchange investment	
12.  Associated assignment based on the assignment of Exchange Land investment	
13.  Associated assignment based on the assignment of Switching Equipment Exchange investment	
14.  Associated assignment based on the assignment of COE Common and Power Exchange investment	

Table 3-2:  Assignment Summary Plant Non Specific Operations Expenses
Table 3-2:  ASSIGNMENT SUMMARY - Plant Non Specific Operations Expense Accounts															
							BROAD SERVICE CATEGORIES								
Account Group	Summary Account	Account	Sub Record	Description	Cost Centre	METHOD	ACCESS	LOCAL	TOLL	NETWORK 		TERMINAL	COMMON	OTHER	
										Cellular	Other				
PLANT OPERATIONS	6510-OTHER PLANT AND EQUIPMENT EXPENSES	6511-OTHER	619	Freight, Express and Customs	Inside Plant Staff North Bay - 110										
					Inside Plant Moosonee - 123										
					Inside Plant Timmins DMS 200 - 125										
					Inside Plant Tech Services New Liskeard - 132										
					Inside Plant Temagami - 133										
					Inside Plant Cochrane - 134										
					Outside Plant - 141										
					Subtotal	Associated	Note 1	Note 1	Note 1	Note 1	Note 1	Note 1	Note 1		
			618/208/819	Miscellaneous	Inside Plant Staff North Bay - 110										
					Inside Plant Moosonee - 123										
					Inside Plant Tech Services New Liskeard - 132										
					Inside Plant Temagami - 133										
					Inside Plant Cochrane - 134										
					Outside Plant - 141										
					Subtotal	Associated	Note 1	Note 1	Note 1	Note 1	Note 1	Note 1	Note 1		
			801	Travel	Inside Plant Staff North Bay - 110										
					Inside Plant Moosonee - 123										
					Inside Plant Timmins DMS 200 - 125										
					Inside Plant Tech Services New Liskeard - 132										
					Inside Plant Temagami - 133										
					Inside Plant Cochrane - 134										
					Outside Plant - 141										
					Subtotal	Associated	Note 2	Note 2	Note 2	Note 2	Note 2	Note 2	Note 2		
			647	Taxis  Boats Planes	Inside Plant Staff North Bay - 110										
					Inside Plant Moosonee - 123										
					Inside Plant Tech Services New Liskeard - 132										
					Inside Plant Temagami - 133										
					Inside Plant Cochrane - 134										
					Subtotal	Associated	Note 2	Note 2	Note 2	Note 2	Note 2	Note 2	Note 2		
			807/887	Training	Inside Plant Staff North Bay - 110										
					Inside Plant Moosonee - 123										
					Inside Plant Timmins DMS 200 - 125										
					Inside Plant Tech Services New Liskeard - 132										
					Inside Plant Temagami - 133										
					Inside Plant Cochrane - 134										
					Outside Plant - 141										
					Subtotal	Associated	Note 2	Note 2	Note 2	Note 2	Note 2	Note 2	Note 2		
			650	Misc. Rents	Inside Plant Moosonee - 123	Direct		Total							
					Inside Plant Temagami - 133	Direct		Total							
					Subtotal										
			709	Contract Snow Removal	Inside Plant Staff North Bay - 110										
					Inside Plant Moosonee - 123										
					Inside Plant Timmins Toll NCC - 124										
					Inside Plant Tech Services New Liskeard - 132										
					Inside Plant Temagami - 133										
					Inside Plant Cochrane - 134										
					Outside Plant - 141										
					Subtotal	Associated	Note 3	Note 3	Note 3	Note 3	Note 3	Note 3	Note 3		
			803	Stationary and Printing	Inside Plant Staff North Bay - 110										
					Inside Plant Moosonee - 123										
					Inside Plant Timmins DMS 200 - 125										
					Inside Plant Tech Services New Liskeard - 132										
					Inside Plant Temagami - 133										
					Inside Plant Cochrane - 134										
					Outside Plant - 141										
					Subtotal	Associated	Note 2	Note 2	Note 2	Note 2	Note 2	Note 2	Note 2		
			653/654	Rents Non Mobiles	General - 500										
					Subtotal	Associated	Note 2	Note 2	Note 2	Note 2	Note 2	Note 2	Note 2		
			263	Lines Equpt Repair Other	Inside Plant Timmins DMS 200 - 125										
					Inside Plant Tech Services New Liskeard - 132										
					Inside Plant Temagami - 133										
					Inside Plant Cochrane - 134										
					Outside Plant - 141										
					Subtotal	Associated	Note 2	Note 2	Note 2	Note 2	Note 2	Note 2	Note 2		
			842	Manuals and Prints	Inside Plant Staff North Bay - 110										
					Subtotal	Associated	Note 2	Note 2	Note 2	Note 2	Note 2	Note 2	Note 2		
			819	Misc General Plant Expenses	General - 500										
					Subtotal	Associated	Note 2	Note 2	Note 2	Note 2	Note 2	Note 2	Note 2		
			821	Safety Program	Inside Plant Staff North Bay - 110										
					Subtotal	Associated	Note 2	Note 2	Note 2	Note 2	Note 2	Note 2	Note 2		
					SUBTOTAL OTHER EXPENSES 										
NETWORK OPERATIONS	6530-NETWORK OPERATIONS	6531-POWER	305	Power Generators	Inside Plant Staff North Bay - 110										
					Inside Plant Moosonee - 123										
					Inside Plant Cochrane - 134										
					Subtotal	Associated		Note 4	Note 4		Note 4				
			307	Propane	Inside Plant Temagami - 133	Associated		Note 4	Note 4		Note 4				
					Inside Plant Cochrane - 134	Associated		Note 4	Note 4		Note 4				
					Outside Plant - 141	Associated	Note 5	Note 5	Note 5		Note 5				
					Subtotal										
			410	Hydro	Inside Plant Staff North Bay - 110										
					Subtotal	Associated		Note 6	Note 6		Note 6				
			266	Generator Materials	Inside Plant Moosonee - 123	Associated		Note 4	Note 4		Note 4				
					Inside Plant Timmins Toll NCC - 124	Associated		Note 4	Note 4		Note 4				
					Inside Plant Cochrane - 134	Associated		Note 4	Note 4		Note 4				
					Subtotal										
					Subtotal Power										
		6536-RADIO LICENCES	949	Radio Licences	General - 500										
					Subtotal Radio Licences	Associated		Note 7	Note 7		Note 7				
		6532-NETWORK ADMINISTRATION	1	Salaries and Wages	Inside Plant Timmins Toll NCC - 124										
			260	Material	Inside Plant Timmins Toll NCC - 124										
			807/687	Training	Inside Plant Timmins Toll NCC - 124										
			501	Tools	Inside Plant Timmins Toll NCC - 124										
			805	Furniture & fixtures	Inside Plant Timmins Toll NCC - 124										
			607	Rentals Copy Machine	Inside Plant Timmins Toll NCC - 124										
			619	Freight, Express and Customs	Inside Plant Timmins Toll NCC - 124										
			618/208/819	Miscellaneous	Inside Plant Timmins Toll NCC - 124										
			801	Travel	Inside Plant Timmins Toll NCC - 124										
			647	Taxis, Boats, Planes	Inside Plant Timmins Toll NCC - 124										
			650	Misc. Rents	Inside Plant Timmins Toll NCC - 124										
			803	Stationary and Printing	Inside Plant Timmins Toll NCC - 124										
			263	Lines Equpt Repair Other	Inside Plant Timmins Toll NCC - 124										
					Subtotal Network Administration	Study		Note 8	Note 8		Note 8				
		6535-ENGINEERING	1	Salaries and Wages	Engineering - 200										
			260	Material re; Equipment	Engineering - 200										
			842	Manuals and Prints	Engineering - 200										
			803	Technical Services	Engineering - 200										
			505	Misc. Tools and Supplies	Engineering - 200										
			805	Furniture & fixtures	Engineering - 200										
			890	Computer Software	Engineering - 200										
			619	Freight, Express and Customs	Engineering - 200										
			618/208/819	Miscellaneous	Engineering - 200										
			801	Travel	Engineering - 200										
			807/887	Training	Engineering - 200										
			803	Stationary and Printing	Engineering - 200										
			649	Circuit Leases Others	Engineering - 200										
					Subtotal Engineering	Associated	Note 9	Note 9	Note 9	Note 9	Note 9	Note 9	Note 9	Note 9	
		6537-CIRCUIT LEASE & TELEPHONE	649	Circuit Leases Others	Inside Plant Staff North Bay - 110										
					General - 500										
					Subtotal	Direct					Total				
			648	Circuit Leases NTL	General - 500										
					Subtotal	Direct					Total				
			431	Telephone NTL	General - 500										
					Subtotal	Associated	Note 2	Note 2	Note 2	Note 2	Note 2	Note 2	Note 2	Note 2	
			432	Telephone Others	General - 500										
					Subtotal	Associated	Note 2	Note 2	Note 2	Note 2	Note 2	Note 2	Note 2	Note 2	
			651	NTL Pvt Line	General - 500										
					Subtotal	Direct					Total				
			660	Circuit Lease Peewanuk	General - 500										
					Subtotal	Study		Note 10	Note 10		Note 10				
			946	Telebec Pvt Line	General - 500										
					Subtotal	Direct					Total				
					Subtotal  Circuit  Lease & Telephone										
					SUBTOTAL NETWORK OPERATIONS										
ACCESS EXPENSE	6540-ACCESS EXPENSE	6541-CAT PAYMENTS NTL             	942	COMM NTL - TOLLS              	General - 500										
					Subtotal	Direct			Total						
		6542-COMM NTL-PRIVATE LINE       	944	COMM NTL Pvt Line	General - 500										
					Subtotal	Direct					Total				
		6543-COMM ABITIBI                  	945	COMM ABITIBI                  	General - 500										
					Subtotal	Direct			Total						
		6544-COMM COCHRANE PUC             	946	COMM COCHRANE	General - 500										
					Subtotal	Direct			Total						
					SUBTOTAL ACCESS EXPENSE										
DEPRECIATION & AMORTISATION	6550-DEPRECIATION EXPENSE	6551-DEPRECIATION EXPENSE TPIS	901	DEPRECIATION                  	General - 500										
					Subtotal										
					Subtotal  Depreciation	Associated	Note 11	Note 11	Note 11	Note 11	Note 11	Note 11	Note 11	Note 11	
	6560-AMORTISATION  EXPENSE	6563-AMORTISATION  TANGIBLE	XXX	Amortisation-Tangible	General - 500										
					Subtotal Amortisation Tangible	Direct		Total							
		6564-AMORTISATION  INTANGIBLE	XXX	Amortisation-Intangible-xxx	General - 500										
					Subtotal Amortisation Intangible	Direct							Total		
					SUBTOTAL DEPRECIATION & AMORTISATION										
Notes	
1.  Associated assignment based on the assignment of Plant Specific Materials Expenses.	
2.  Associated assignment based on the assignment of Plant Specific Wages and Salaries.	
3.  Associated assignment based on the assignment of Total Land investment	
4.  Associated assignment based on the assignment of COE Tx , Common and Power Equipment	
5.  Associated assignment based on the assignment of Outside Plant investment	
6.  Associated assignment based on the assignment of Total Buildings investment	
7.  Associated assignment based on the assignment of COE Tx Radio Investment	
8.  Study assignment based on the results of the Circuit Utilisation Study	
9.  Associated assignment based on the assignment of COE, Outside Plant and Cellular investment	
10.  Study assignment based on the results of the Circuit Utilisation Study-Peewanuk Cross Section	
11.  Associated assignment based on the assignment of gross plant on an account specific basis	

Table 3-3:  Assignment Summary Customer Operations Expense Accounts
Table 3-3:  ASSIGNMENT SUMMARY - Customer Operations Expense Accounts	
							BROAD SERVICE CATEGORIES	
Account Group	Summary Account	Account	Subsidiary Record	Description	Cost Centre	METHOD	ACCESS	LOCAL	TOLL	NETWORK 		TERMINAL	COMMON	OTHER	
										Cellular	Other				
CUSTOMER OPERATIONS	6610-MARKETING	6611-PRODUCT MANAGEMENT	1	Salaries and Wages	Marketing - 300										
					Subtotal Product Management Expenses	Study		Note 1	Note 1	Note 1	Note 1	Note 1			
		6612-SALES	1	Salaries and Wages	Marketing - 300										
					Subtotal Sales Expenses	Study		Note 1	Note 1	Note 1	Note 1	Note 1			
		6614-OTHER	432	Telephone Others	Marketing - 300										
			807/887	Training	Marketing - 300										
			801	Travel	Marketing - 300										
			619	Freight Express and Customs	Marketing - 300										
			803	Stationary and Printing	Marketing - 300										
			819	Miscellaneous	Marketing - 300										
			203	Repairs - Auto and Truck	Marketing - 300										
			308	Gas and Minor Vehicle Repair	Marketing - 300										
			903	Insurance Auto	Marketing - 300										
			805	Furniture & fixtures	Marketing - 300										
					Subtotal Other Expenses	Study		Note 2	Note 2	Note 2	Note 2	Note 2			
		6613-PRODUCT ADVERTISING	806	Advertising	Marketing - 300										
					Inside Plant Staff North Bay - 110										
					Subtotal Product Advertising  Expenses	Study		Note 1	Note 1	Note 1	Note 1	Note 1			
					SUBTOTAL MARKETING EXPENSES										
	6620-SERVICES	6621-CALL COMPLETION SERVICES	1	Salaries and Wages	Toll Centre Timmins - 121										
					Toll Centre Cochrane - 122										
			801	Travel	Toll Centre Timmins - 121										
					Toll Centre Cochrane - 122										
			807/887	Training	Toll Centre Timmins - 121										
					Toll Centre Cochrane - 122										
			803	Stationary and Printing	Toll Centre Timmins - 121										
					Toll Centre Cochrane - 122										
			607	Rentals Copy Machine	Toll Centre Cochrane - 122										
			805	Furniture & fixtures	Toll Centre Timmins - 121										
					Toll Centre Cochrane - 122										
					Subtotal Call Completion	Direct			Total						
		6622-NUMBER SERVICES	841	Telephone Directories	Marketing - 300										
					Subtotal Sales Expenses	Direct	Total								
		6623-CUSTOMER SERVICES	1	Salaries and wages	Toll Processing - 430										
			618/819	Miscellaneous	Toll Processing - 430										
			619	Freight, Express and Customs	Toll Processing - 430										
			807/887	Training	Toll Processing - 430										
			260	Materials	Toll Processing - 430										
			505	Misc. Tools and Supplies	Toll Processing - 430										
			805	Furniture & fixtures	Toll Processing - 430										
			803	Stationary and Printing	Toll Processing - 430										
			649	Circuit Leases Others	Toll Processing - 430										
					Subtotal Customer Services	Associated		Note 3	Note 3	Note 3	Note 3	Note 3			
					SUBTOTAL SERVICES EXPENSES										
				GRAND TOTAL CUSTOMER OPERATIONS EXPENSES											
Notes	
1.  Study assignment based on the results of the Advertising Study	
2.  Associated assignment based on the assignment of Marketing Wages and Salaries	
3.  Associated assignment based on the assignment of Billed Revenues	

Table 3-4:  Assignment Summary Corporate and Other Expenses
Table 3-4:  ASSIGNMENT SUMMARY - Corporate Operations and Other Expense Accounts	
						BROAD SERVICE CATEGORIES	
Group	Summary Account	Account	Subsidiary Record	Description	Cost Centre	METHOD	ACCESS	LOCAL	TOLL	NETWORK 		TERMINAL	COMMON	OTHER	
										Cellular	Other				
CORPORATE OPERATIONS	6710-EXECUTIVE AND PLANNING	6711-EXECUTIVE AND PLANNING 	1	Salaries and Wages	Administration - 400										
			640	Consulting Fees - ONTC	Administration - 400										
			xxx	Consulting Fees - Other	Administration - 400										
			xxx	Service Fees - ONTC	Administration - 400										
					Subtotal	Direct							Total		
	6720-GENERAL  & ADMINISTRATIVE	6721-ACCOUNTING AND FINANCE	xxx	Service Fees - ONTC	Administration - 400										
					Subtotal	Direct							Total		
		6722-EXTERNAL RELATIONS	1	Salaries and Wages	Administration - 400										
					Rates and Reg. Matters - 410										
			801	Travel	Administration - 400										
					Rates and Reg. Matters - 410										
			842	Manuals and Prints	Rates and Reg. Matters - 410										
			640	Consulting Fees - ONTC	Administration - 400										
					Rates and Reg. Matters - 410										
			xxx	Consulting Fees - Other	Administration - 400										
					Rates and Reg. Matters - 410										
			xxx	Service Fees - ONTC	Administration - 400										
					Subtotal	Direct							Total		
		6723-HUMAN RESOURCES	xxx	Service  Fees - ONTC	Administration - 400										
					Subtotal	Direct							Total		
		6724-INFORMATION MANAGEMENT	xxx	Service  Fees - ONTC	Administration - 400										
					Subtotal	Direct							Total		
		6725-LEGAL	xxx	Service Fees - ONTC	Administration - 400										
			xxx	Legal  Fees - Other	Administration - 400										
					Subtotal	Direct							Total		
		6726-PROCUREMENT	xxx	Service  Fees - ONTC	Administration - 400										
					Subtotal	Direct							Total		
		6728-OTHER	208/819	Miscellaneous	Administration - 400										
					General - 500										
			619	Freight, Express and Customs	Administration - 400										
			808	Moving Employees	Inside Plant Staff North Bay - 110										
			811	Employee Medicals	Inside Plant Staff North Bay - 110										
					Toll Centre Timmins - 121										
					Toll Centre Cochrane - 122										
					Inside Plant Timmins Toll NCC - 124										
					Administration - 400										
			841	Telephone Directories	Inside Plant Staff North Bay - 110										
			842	Manuals and Prints	Administration - 400										
			601	Association Fees	Engineering - 200										
			801	Travel	Administration - 400										
			803	Stationary and Printing	Administration - 400										
					General - 500										
			807/887	Training	Administration - 400										
			170	Personal Injuries	General - 500										
			902	Recoveries Outside Parties	General - 500										
			906	Insurance Liability	General - 500										
			820	Recognition Awards Program	General - 500										
			607	Rentals Copy Machine	Administration - 400										
			805	Furniture & Fixtures	Administration - 400										
			649	Circuit Leases Others	Administration - 400										
			xxx	Service  Fees - ONTC	Administration - 400										
					Subtotal	Direct							Total		
OPERATING TAXES	7200-OPERATING TAXES	7230-MUNICIPAL TAXES	908	Municipal Taxes	General - 500	Associated		Note 1	Note 1		Note 1				
		7240-GROSS RECEIPTS TAX	948	Gross Receipts Tax	General - 500	Associated	Note 2	Note 2	Note 2	Note 2	Note 2	Note 2			
		7250-REGULATORY TAX	940	Cost of Regulation	Rates and Reg. Matters - 410	Direct							Total		
					Subtotal Operating Taxes										
NON OPERATING EXPENSES	7500-INTEREST AND RELATED  EXPENSES	7540-OTHER INTEREST	993	Bad Debts	General - 500										
		7510-INTEREST ON DEBT	xxx	Financial Charges ONTC	General - 500										
					Subtotal Interest	Associated	Note 3	Note 3	Note 3	Note 3	Note 3	Note 3	Note 3	Note 3	
Notes:	
1.  Associated assignment based on the assignment of Buildings and Towers investment	
2.  Associated assignment based on the assignment of Revenues	
3.  Associated assignment based on the assignment of the ANIB	

3.3	The Assignment of Plant Operations Expense Accounts
The Plant Operations accounts accumulate the company’s costs associated with the operation and maintenance of the company’s telephone plant.  Plant Operations contain the following seven summary accounts:
•	Account 6110 Network Support Expenses.
•	Account 6120 General Support Expenses.
•	Account 6200 Central Office Equipment Expenses.
•	Account 6310 Station Apparatus Expenses.
•	Account 6410 Cables and Pole Lines Expenses.
•	Account 6451 Cellular Expenses.
•	Account 6510 Other Plant Operations Expenses.
Each of these summary accounts contain specific accounts (as discussed in the following subsections) which are maintained by subsidiary record categories (e.g. salaries, material, etc.…) with each subsidiary category cost accumulated by cost centre (as applicable).  The cost centres are as follows:
•	Inside Plant Staff North Bay.
•	Toll Centre Timmins.
•	Toll Centre Cochrane.
•	Inside Plant Moosonee.
•	Inside Plant Timmins DMS-200.
•	Inside Plant Tech Services New Liskeard.
•	Inside Plant Temagami.
•	Inside Plant Cochrane.
•	Outside Plant.
•	General.
With the exception of the Inside Plant North Bay and General cost centres, which accumulate certain common plant operations costs on behalf of all cost centres, the cost centres accumulate the Plant Operations costs applicable to the activity performed or plant supported in that centre.  As a result, many Plant Operations expense accounts are assigned to the BSC’s on a cost centre specific basis, based on the nature of the cost, the activity performed and plant supported in that cost centre.
3.3.1	The Assignment of Account 6110 Network Support Expenses
The Network Support account accumulates the company’s costs associated with the operation and maintenance of Motor Vehicles and Work Equipment.  The summary account contains two accounts:
•	Account 6112 Motor Vehicles Expenses.
•	Account 6116 Work Equipment Expenses.
3.3.1.1	The Assignment of Account 6112 Motor Vehicle Expenses
The Motor Vehicles expense account is assigned on a company wide basis to the BSC’s in the same proportion as the assignment of Vehicle investments.
3.3.1.2	The Assignment of Account 6116 Work Equipment Expenses 
Work Equipment expenses are assigned on a company wide basis to the BSC’s in the same proportion as the assignment of Vehicle investments.
3.3.2	The Assignment of Account 6120 General Support Expenses
The General Support account accumulates the company’s costs associated with the operation and maintenance of Land and Buildings, Furniture and Office Equipment and Computers.  The summary account contains three accounts as follows:
•	Account 6121 Land and Buildings Expenses.
•	Account 6122 Furniture and Office Equipment Expenses.
•	Account 6124 General Purpose Computer Expenses.
3.3.2.1	The Assignment of Account 6121 Land and Buildings Expenses
Land and Buildings account expenses are assigned on a cost centre basis depending upon the nature of the cost and the activity performed or plant supported by the cost centre.
•	Land and Building expenses associated with the Toll Centre Timmins and Toll Centre Cochrane cost centres are assigned directly to the Toll BSC.
•	Land and Building expenses associated with the Inside Plant Moosonee and Inside Plant Temagami cost centres are assigned on the basis of the assignment of COE Exchange investment to the BSC’s.
•	Land and Building expenses associated with the Inside Plant Timmins DMS-200, Inside Plant Tech Services New Liskeard and Inside Plant Cochrane cost centres are assigned to the BSC’s in the same proportion as the assignment of Building and Towers Toll investment or Land Toll investment depending on whether the expense is related to Buildings or Land.
•	Building expenses associated with the Inside Plant North Bay cost centre is assigned to the BSC’s in the same proportion as the assignment of Total Building and Towers investment.
•	Land and Building expenses associated with the Outside Plant cost centre is assigned to the BSC’s in the same proportion as the assignment of Other Building and Towers investment.
•	Land and Building expenses associated with the General cost centre is assigned to the BSC’s in the same proportion as the assignment of Total Building and Towers investment for the rental of railway buildings and building insurance expenses and on the basis of the weighted combined assignment of COE Tx Toll, Common and Power Toll and FOTS Toll investments for expenses associated with space and power rentals from other companies.
•	Land lease (right of way) expenses associated with the company’s inter exchange network are assigned to the BSC’s on the basis of the results of the Circuit Utilisation Study.
3.3.2.2	The Assignment of Account 6122 Furniture and Office Equipment Expenses
Furniture and Office Equipment account expenses are assigned on a company wide basis to the Common BSC.
3.3.2.3	The Assignment of Account 6124 Computer Equipment Expenses
Computer Equipment expenses are directly assigned on a company wide basis to the Common BSC. 
3.3.3	The Assignment of Account 6200 COE Expenses
The COE Expense account accumulates the company’s costs associated with the operation and maintenance of COE Switching equipment, Operator Systems, COE Transmission equipment and COE Common and Power equipment.  The summary account contains the following accounts:
•	Account 6210 COE Switching.
•	Account 6220 Operator Systems.
•	Account 6230 COE Transmission Equipment.
•	Account 6240 COE Common and Power Equipment.
3.3.3.1	The Assignment of Account 6210 COE Switching Equipment Expenses
The COE Switching expense account accumulates the company’s costs associated with contracted equipment services and material and salaries associated with the operation and maintenance of COE Switching Equipment.  These expenses are assigned on a cost centre basis depending upon the nature of the costs and the activity undertaken or plant supported by the cost centre.
•	COE Switching expenses associated with contracted equipment services for the Inside Plant Moosonee and Inside Plant Temagami cost centres are assigned to the BSC’s in the same proportion as the assignment of Switching Equipment Exchange investment.
•	COE Switching expenses associated with contracted equipment services for the Inside Plant Timmins DMS 200 cost centre are assigned directly to the Toll BSC.
•	COE Switching expenses associated with materials and salaries and wages for all cost centres with the exception of the Inside Plant Moosonee and Inside Plant Temagami cost centres are assigned to the BSC’s on the basis of the Operations Activity Study.
•	COE Switching expenses associated with materials and salaries and wages for the Inside Plant Moosonee and Inside Plant Temagami cost centres are assigned to the BSC’s in a two step process:
•	In the first step the Operations Activity study determines the proportion of the expenses causally related to the operation and maintenance of COE Switching Equipment associated with Data and Toll equipment (assigned to the Toll and Network Other BSC’s) and associated with Exchange Switching Equipment (subject to assignment to the Local and Toll in the second step). 
•	In the second step, the Exchange Switching Equipment component from the first step is separated into Toll and Local components based on the results of the Local switching Study.
3.3.3.2	The Assignment of Account 6220 Operator Systems Expenses
The Operator Systems expense account accumulates the company’s costs associated with material for the operation and maintenance of COE Operator Systems Equipment.
•	COE Operator Systems expenses are directly assigned on a company wide basis to the Toll BSC.
3.3.3.3	The Assignment of Account 6230 COE Transmission Expenses
The COE Transmission expense account accumulates the company’s costs associated with, material and salaries for the operation and maintenance of COE Transmission Equipment.
•	COE Transmission expenses are assigned to the BSC’s on a cost centre basis using a two step process:
•	In the first step the Operations Activity determines, on a cost centre basis, the proportion of the expenses causally related to the operation and maintenance of COE Transmission Equipment in the local exchange area (assigned to the Local BSC) and in the inter exchange network (subject to assignment to the Local, Toll and Network Other BSC’s in the second step). 
•	In the second step , the COE Transmission expenses causally related to the operation and maintenance of COE Transmission equipment in the inter exchange network are assigned to the Local, Toll and Network Other BSC’s on the basis of the Circuit Utilisation Study 
3.3.3.4	The Assignment of Account 6240 COE Common and Power Expenses
The COE Common and Power expense account accumulates the company’s costs associated with material and salaries for the operation and maintenance of COE Common and Power Equipment as well as costs associated with the operation and maintenance of generators.
•	COE Common and Power equipment expenses associated with material and salaries are assigned to the BSC’s on a cost centre basis using a two step process:
•	In the first step the Operations Activity Study determines on a cost centre basis, the proportion of the expenses causally related to the operation and maintenance of COE Common and Power Equipment in the local exchange area (associated assignment based on the assignment of COE Common and Power Exchange investment) and in the inter exchange network (subject to assignment to the Local, Toll and Network Other BSC’s in the second step). 
•	In the second step , the COE Common and Power expenses causally related to the operation and maintenance of COE Common and Power equipment in the inter exchange network are assigned to the Local, Toll and Network Other BSC’s on the basis of the Circuit Utilisation Study.
•	COE Common and Power equipment expenses associated with the operation and maintenance of generators are assigned to the BSC’s on a cost centre basis depending upon the nature of the costs and the activity undertaken or plant supported by the cost centre.
•	COE Common and Power expenses associated with the Inside Plant Moosonee cost centre are assigned to the BSC’s in the same proportion as the assignment of COE Common and Power Exchange investment to the BSC’s.
•	COE Common and Power expenses associated with the Inside Plant Cochrane cost centre are assigned to the BSC’s in the same proportion as the assignment of COE Common and Power Toll investment to the BSC’s.
3.3.4	The Assignment of Account 6310 Station Apparatus Expenses
The Station Apparatus account accumulates the company’s costs associated single line and multiline station apparatus.
•	Station Apparatus expenses accounts are directly assigned on a company wide basis to the Terminal BSC.
3.3.5	The Assignment of Account 6410 Cables and Pole Lines Expenses
The Pole Lines and Cable account accumulates the company’s costs associated with Cables and Poles Lines.  This includes costs associated with joint use poles, material and salaries and wages.

These expenses are assigned on a cost centre basis with the exception of the expenses for joint use poles and for material associated with the use of outside equipment which are assigned on a company wide basis.  The cost centre assignments depend upon the nature of the costs and the activity undertaken or plant supported by the cost centre.
•	Pole Lines and Cable expenses associated with material and salaries are assigned to the BSC’s on a cost centre basis using a two step process:
•	In the first step the Operations Activity Study determines on a cost centre basis, the proportion of the expenses causally related to the operation and maintenance of Pole Lines and Cable in the local exchange area (assigned to the Access BSC) and in the inter exchange network (subject to assignment to the Local, Toll and Network Other BSC’s in the second step). 
•	In the second step , the Pole lines and Cable expenses causally related to the operation and maintenance of Pole Lines and Cables in the inter exchange network are assigned to the Local, Toll and Network Other BSC’s on the basis of the Circuit Utilisation Study.
•	Pole Lines and Cable expenses associated with joint use poles are assigned to the BSC’s on a company wide basis in the same proportion as the assignment of Pole Lines and Cable investment.
•	Pole Lines and Cable expenses associated with material associated with outside equipment are assigned to the BSC’s on a company wide basis in the same proportion as the assignment of Cables and Poles Lines salaries and wages.
3.3.6	The Assignment of Account 6451 Cellular Expenses
The Cellular account accumulates the company’s costs associated with the operation and maintenance of cellular radio systems 
•	The Cellular expense account is directly assigned on a company wide basis to the Network Cellular BSC.
3.3.7	The Assignment of Account 6511 Other Plant Operations Expenses
The Other Plant Operations account accumulates the company’s costs associated with other plant operations expenses not accumulated in another Plant Operations account   These costs include travel, training, stationary and printing, safety program and miscellaneous rents and expenses.  With the exception of miscellaneous rents, other plant operations expenses are assigned on a company wide basis.
•	Freight, Express and Customs expenses as well as miscellaneous expenses are assigned to the BSC’s in the same proportion as the assignment of Plant Operations materials expenses.
•	Travel, Taxis, Training, Stationary and Printing ,Rents Non Mobiles, Line Equipment Repair Other, Manuals and Prints , Safety Program and Miscellaneous General Plant expenses are assigned to the BSC’s in the same proportion as the assignment of Plant Operations Salaries and Wages.
•	Contract snow removal expenses are assigned to the BSC’s in the same proportion as the assignment of Total Land investment.
•	Miscellaneous rents expenses associated with the Inside Plant Moosonee and Inside Plant Temagami cost centres are directly assigned to the Local BSC.
3.4	The Assignment of Network Operations Expense Accounts
The Network Operations accounts accumulate the company’s costs associated with non plant specific network operations.  Network operations expenses contain the following five accounts:
•	Account 6531 Power.
•	Account 6532 Network Administration.
•	Account 6535 Engineering.
•	Account 6536 Radio Licences.
•	Account 6537 Circuit Lease and Telephone.
Each of these summary accounts are maintained by subsidiary record categories (e.g. salaries, material, etc.…) with each subsidiary category cost accumulated by cost centre (as applicable).  The cost centres are as follows:
•	Inside Plant Staff North Bay.
•	Inside Plant Moosonee.
•	Inside Plant Timmins Toll NCC.
•	Inside Plant Temagami.
•	Inside Plant Cochrane.
•	Outside Plant.
•	General.
•	Engineering.
With the exception of the Inside Plant North Bay and General cost centres which accumulate certain common network operations costs on a company wide basis, the cost centres accumulate network operations costs applicable to the activity performed in that centre.  As a result, certain network operations expense accounts are assigned to the BSC’s on a cost centre specific basis, based on the nature of the cost and the activity performed in that centre. 
3.4.1	The Assignment of Account 6531 Power Expenses
The Power account accumulates the company’s power costs.  This includes costs associated with the operation of power generators as well as costs associated with propane and hydro. 
•	Power Generator and propane expenses are assigned to the BSC’s in the same proportion as the assignment of COE Transmission ( Radio, Other and FOTS) and COE Common and Power investments.
•	Propane expenses associated with the Outside Plant cost centre are assigned to the BSC’s in the same proportion as the assignment of Pole Lines and Cables investments.
•	Hydro expenses are assigned to the BSC’s on a company wide basis in the same proportion as the assignment of Total Building and Towers investment.
3.4.2	The Assignment of Account 6532 Network Administration Expenses
The Network Administration account accumulates the company’s costs associated with the administration of its network.  These expenses are assigned on a company wide basis.
•	Network Administration expenses are assigned to the BSC’s on the basis of the Circuit Utilisation Study.
3.4.3	The Assignment of Account 6535 Engineering Expenses
The Engineering account accumulates the company’s engineering costs associated with the operation and development of its network.  These expenses are assigned on a company wide basis.
•	Engineering expenses are assigned to the BSC’s in the same proportion as the assignment of COE Equipment, Cables and Poles Lines and Cellular investments to the BSC’s.
3.4.4	The Assignment of Account 6536 Radio Licence Expenses
The Radio Licence account accumulates the company’s costs associated with the licensing of its radio facilities.
•	Radio Licence expenses are assigned to the BSC’s in the same proportion as the assignment of COE Transmission Radio investments.
3.4.5	The Assignment of Account 6537 Circuit Lease and Telephone Expenses
The Circuit Lease and Telephone account accumulates the company’s costs associated with the lease of circuits and telephone service from other carriers.  These expenses are assigned to the BSC’s on a company wide based upon the nature of the subsidiary record category.
•	The Circuit Lease categories are directly assigned to the Network Other BSC.
•	The Telephone categories are assigned to the BSC’s in the same proportion as the assignment of Plant Operations Salaries and Wages.
•	The Private Line category is directly assigned to the Network Other BSC.
•	The Peewanuk Circuit Lease category is assigned on the basis of the utilisation of the Peewanuk Cross Section as detailed in the Circuit Utilisation Study.
3.5	The Assignment of Access Expense Accounts
The Access Summary account accumulates the company’s costs associated with Carrier Access Tariff (CAT) and toll commission payments to local exchange carriers.  Summary Account 6540 Access Expenses contains four accounts as follows:
•	Account 6541 CAT Payments NTL
•	Account 6542 Commissions NTL Private Line
•	Account 6543 Commissions Abitibi
•	Account 6544 Commissions Cochrane PUC.
3.5.1	The Assignment of Account 6541 CAT Payments NTL
This account includes amounts paid to Northern Telephone Limited (NTL) for the provision of carrier access 
•	This account is assigned directly to the Toll BSC.
3.5.2	The Assignment of Account 6542 Commissions NTL Private Line
This account includes amounts paid to Northern Telephone Limited (NTL) for private lines.
•	This account is assigned directly to the Network Other BSC.
3.5.3	The Assignment of Account 6543 Commissions Abitibi
This account includes amounts paid to Abitibi for commissions on toll calls.
•	This account is assigned directly to the Toll BSC.
3.5.4	The Assignment of Account 6544 Commissions Cochrane PUC
This account includes amounts paid to Cochrane PUC for commissions on toll calls.
•	This account is assigned directly to the Toll BSC.
3.6	The Assignment of Depreciation and Amortisation Expense Accounts
The Depreciation and Amortisation accounts accumulate the company’s costs associated with the depreciation of the company’s telephone plant in service as well as amortisation expenses on tangible and intangible assets.  Depreciation and Amortisation expenses are contained in the following three accounts:
•	Account 6550 Depreciation expense telecommunications plant in service.
•	Account 6563 Amortisation expense tangible.
•	Account 6564 Amortisation expense intangible.
3.6.1	The Assignment of Account 6550 Depreciation Expense.
The Depreciation account accumulates the company’s costs associated with the depreciation of the company’s investment in telephone plant.  The Depreciation expense account contains subsidiary records which identify the depreciation associated with each of the company’s plant accounts.
•	The Depreciation expense account is assigned to the BSC’s on a subsidiary record basis in the same proportion as the assignment of the equivalent plant investment account to the BSC’s.
3.6.2	The Assignment of Account 6563 Amortisation Expense Tangible.
The Amortisation expense Tangible account accumulates the amortisation of costs associated with tangible assets including Equal Access.  These expenses are assigned to the BSC’s on a company wide basis.
•	Equal Access amortisation costs are assigned directly to the Local BSC since they are recovered through the CAT (see Section 8).
3.6.3	The Assignment of Account 6564 Amortisation Expense Intangible
This account accumulates the amortisation of costs associated with intangible assets including incorporation and reorganisation fees.  These expenses are assigned to the BSC’s on a company wide basis.
•	Amortisation Expenses Intangible costs are assigned directly to the Common BSC.
3.7	The Assignment of Customer Operations Expense Accounts
The Customer Operations accounts accumulate the company’s costs associated with customer related marketing and service activities.  Customer Operations expenses are contained in two summary accounts as follows:
•	Account 6610 Marketing.
•	Account 6620 Services.
Each of these summary accounts contain specific accounts (discussed in the following subsections) which are maintained by subsidiary record categories (e.g. salaries, material, etc.…) with each subsidiary category cost accumulated by cost centre (as applicable).

The cost centres are as follows:
•	Marketing,
•	Toll Centre Timmins,
•	Toll Centre Cochrane.
•	Toll Processing
The cost centres accumulate customer operations costs applicable to the activity performed in that centre and generally accumulate the costs on a company wide basis.  As a result, most customer operations expense accounts are assigned to the BSC’s on a company wide basis depending upon the nature of the cost and the activity performed in the cost centre which accumulates the cost. 
3.7.1	The Assignment of Account 6610 Marketing Expenses
The Marketing account accumulates the company’s marketing costs.  The summary account contains four accounts as follows:
•	Account 6611Product Management.
•	Account 6612 Sales.
•	Account 6613 Product Advertising.
•	Account 6614 Other Marketing Expenses.
3.7.1.1	The Assignment of Account 6611 Product Management Expenses
The Product Management expense account accumulates costs associated in performing administrative activities related to marketing products and services.  This includes competitive analysis, product and service identification and specification, test market planning, demand forecasting, product life cycle analysis, pricing analysis, and the identification and the establishment of distribution channels.
•	Product Management expenses are assigned to the BSC’s on the basis of the Marketing Study.
3.7.1.2	The Assignment of Account 6612 Sales Expenses
The Sales expense account accumulates costs associated in selling products and services. This includes determination of individual customer needs, development and presentation of customer proposals, sales order preparation and handling, and preparation of sales records.
•	Sales expenses are assigned to the BSC’s on the basis of the Marketing Study.
3.7.1.3	The Assignment of Account 6613 Product Advertising Expenses
The Product Advertising expense account accumulates costs associated in developing and implementing promotional strategies to stimulate the purchase of products and services. 
•	Product Advertising expenses are assigned to the BSC’s on the basis of the Marketing Study.
3.7.1.4	The Assignment of Account 6614  Other Marketing Expenses
The Other Marketing expense account accumulates costs incurred in the Marketing cost centre which are not accumulated in the other Marketing Accounts.  This includes training, travel and other costs.
•	Other Marketing expenses are assigned to the BSC’s in the same proportion as the assignment of Marketing Salaries and Wages.
3.7.2	The Assignment of Account 6620 Services Expenses
The Services account accumulates the company’s services costs to customers.  The summary account contains three accounts:
•	Account 6621 Call Completion Services.
•	Account 6622 Number Services.
•	Account 6623 Customer Services.
3.7.2.1	The Assignment of Account 6621 Call Completion Services Expenses
The Call Completion expense account accumulates costs associated in helping customers place and complete calls. This includes handling and recording; intercept; quoting rates, time and charges; and all other activities involved in the manual handling of calls . 
•	Call Completion Services expenses are assigned directly to the Toll BSC.
3.7.2.2	The Assignment of Account 6622 Number Services Expenses
The Number Services expense account accumulates costs associated in providing customer number and classified listings. This includes preparing or purchasing, compiling, and disseminating those listings through directory assistance .
•	Number Services expenses are assigned directly to the Access BSC.
3.7.2.3	The Assignment of Account 6623 Customer Services Expenses
The Customer Services expense account accumulates costs associated in establishing and servicing customer accounts. This includes: initiating customer service orders and records; maintaining and billing customer accounts; collecting and investigating customer accounts, collecting and reporting pay station receipts; and instructing customers in the use of products and services.
•	Customer Services expenses related to the Toll Processing cost centre are assigned to the BSC’s on the basis of billed revenues.
3.8	The Assignment of Corporate Operations Expense Accounts
The Corporate Operations account accumulates the company’s costs associated with executive and planning activities and general administrative activities.  Corporate Operations expenses are contained in two summary accounts:
•	Account 6710 Executive and Planning.
•	Account 6720 General and Administrative.
Each of these summary accounts contain specific accounts (discussed in the following subsections) which are maintained by subsidiary record categories (e.g. salaries, material, etc.…) with each subsidiary category cost accumulated by cost centre (as applicable).

The cost centres are as follows:
•	Administration
•	Rates and Regulatory Matters.
•	General.
The cost centres accumulate corporate  operations costs applicable to the activity performed in that centre and generally accumulate the costs on a company wide basis.  As a result, most corporate operations expense accounts are assigned to the BSC’s on a company wide basis depending upon the nature of the cost and the activity performed in the cost centre which accumulates the cost..
3.8.1	The Assignment of Account 6710 Executive and Planning Expenses
The Executive and Planning account accumulates the company’s costs incurred in formulating corporate policy and in providing overall administration and management, as well as costs incurred in developing and evaluating long-term courses of action for the future operations of the company.  The summary Account contains one account of the same name, Account 6711 Executive and Planning expenses.
•	Executive and Planning expenses are assigned directly to the Common BSC.
3.8.2	The Assignment of Account 6720 General and Administrative Expenses
The General and Administrative account accumulates the company’s costs incurred providing general and administrative services on a corporate wide basis.  The summary account contains seven accounts as follows: 
•	Account 6721 Accounting and Finance.
•	Account 6722 External Relations.
•	Account 6723 Human Resources.
•	Account 6724 Information Management.
•	Account 6725 Legal.
•	Account 6726 Procurement.
•	Account 6727 Other General and Administrative.
3.8.2.1	The Assignment of Account 6721 Accounting and Finance Expenses
The Accounting and Finance expense account includes costs incurred in providing accounting and financial services
•	Accounting and Finance expenses are assigned directly to the Common BSC.
3.8.2.2	The Assignment of Account 6722 External Relations Expenses
The External Relations expense account. includes costs incurred in maintaining relations with government, regulators, other companies and the general public. 
•	External Relations expenses are assigned directly to the Common BSC.
3.8.2.3	The Assignment of Account 6723 Human Resources Expenses
The Human Resources expense account. includes costs incurred in performing personnel administration activities. 
•	Human Resources expenses are assigned directly to the Common BSC.
3.8.2.4	The Assignment of Account 6724 Information Management Expenses
The Information Management expense account. includes costs incurred in planning, developing, testing, implementing and maintaining data bases and application systems for general purpose computers.
•	Information Management expenses are assigned directly to the Common BSC.
3.8.2.5	The Assignment of Account 6725 Legal Expenses
The Legal expense account. accumulates costs incurred in providing legal services.
•	Legal expenses are assigned directly to the Common BSC.
3.8.2.6	The Assignment of Account 6726 Procurement Expenses
The Procurement expense account. includes costs incurred in procuring material and supplies, including office supplies.
•	Procurement expenses are assigned directly to the Common BSC.
3.8.2.7	The Assignment of Account 6728 Other General and Administrative Expenses
The Other General and Administration expense account. includes costs incurred in performing general administrative activities not provided for in other accounts.
•	Other General and Administration expenses are assigned directly to the Common BSC.
3.9	The Assignment of Operating Taxes Expense Accounts
The Operating Taxes accounts accumulate the company’s costs associated with municipal taxes and gross receipts taxes..  Summary account 7200 Operating Taxes contains two accounts as follows:
•	Account 7230 Municipal Taxes.
•	Account 7240 Gross Receipts Taxes.
•	Account 7250 Regulatory Taxes.
3.9.1	The Assignment of Account 7230 Municipal Taxes Expenses
The Municipal Taxes expense account accumulates the company’s costs incurred due to municipal taxes.
•	Municipal Tax expenses are assigned to the BSC’s in the same proportion as the assignment of Buildings and Towers investment to the BSC’s.
3.9.2	The Assignment of Account 7240 Gross Receipts Tax Expenses
The Gross Receipts Tax expense account accumulates the company’s costs incurred due to gross receipts taxes. 
•	Gross Receipts Tax expenses are assigned to the BSC’s in the same proportion as the assignment of Revenues to the BSC’s.
3.9.3	The Assignment of Account 7250 Regulatory Tax Expenses
The Regulatory Tax expense account accumulates the company’s costs incurred due to regulatory taxes. 
•	Regulatory Tax expenses are assigned directly to the Common BSC.
3.10	The Assignment of Non Operating Expense Accounts
The Non Operating Expenses accounts accumulate the company’s costs associated with interest on funded debt and other interest charges.  Summary Account 7500 Interest and Related expenses contains two accounts:
•	Account 7510 Interest on Funded Debt
•	Account 7540 Other Interest
3.10.1	The Assignment of Account 7510 Interest on Funded Debt
The Interest on Funded Debt  expense account accumulates the company’s costs incurred due to interest costs on long term debt.
•	Interest on Funded Debt expenses are assigned to the BSC’s in the same proportion as the assignment of the Average Net Invested Base (ANIB, see Section 5).
3.10.2	The Assignment of Account 7540 Other Interest
The Other Interest expense account accumulates the company’s costs incurred due to other interest not accumulated in another company account. 
•	Other Interest expenses are assigned to the BSC’s in the same proportion as the assignment of Average Net Invested Base (ANIB, see Section 5).

4.	THE ASSIGNMENT OF REVENUES AND OTHER INCOME
4.1	Introduction
This section describes the method used to assign Revenue accounts and Other Income accounts to the defined Broad Service Categories (BSC’s).
4.2	The Assignment of Revenues and Other Income
Revenue accounts accumulate the company’s revenues associated with the delivery of services as well as other operating revenues.  Revenues are contained in four summary accounts as follows:
•	Account 5000 Local Network Services Revenues.
•	Account 5080 Network Access Services Revenues.
•	Account 5100 Toll Network Services Revenues.
•	Account 5200 Other Operating Revenues.
•	Account 5300 Uncollectible Revenue.
 Other Income accounts accumulate other operating and non operating income such as interest income, gains and losses from disposition and income from custom work.  Other income is contained in two summary accounts:
•	Account 7100 Other Operating Income.
•	Account 7300 Non Operating Income.
The assignment of these summary accounts (and the Accounts which they contain) to the BSC’s for costing purposes is described in the subsections which follow and summarised in Table 4-1 (page 4-2)

Table 4-1:  Assignment Summary Revenues and Other Income
Table 4-1:  Assignment Summary Revenue and Other Income													
					BROAD SERVICE CATEGORIES								
 Group	Summary Account	Account	Description	METHOD	ACCESS	LOCAL	TOLL	NETWORK 		TERMINAL	COMMON	OTHER	
								Cellular	Other				
REVENUES	5000-LOCAL NETWORK SERVICES REVENUES	5001-LOCAL SERVICE REVENUE	MONTHLY ACCESS                	Direct		Total							
			Subtotal										
		5003-CELLULAR MOBILE REVENUE	CELLULAR MOBILE REVENUE	Direct				Total					
			Subtotal										
		5050-CUSTOMER PREMISES REVENUE	MONTHLY EQUIPMENT             	Direct						Total			
			Subtotal										
		5060-OTHER LOCAL EXCHANGE REVENUE	SERVICE CHARGES               	Direct		Total							
			Subtotal										
			SUBTOTAL LOCAL NETWORK										
	5080-NETWORK ACCESS SERVICES REVENUES	5082-SWITCHED ACCESS REVENUE	xxx	Direct	Total								
			Subtotal										
		5083-SPECIAL ACCESS REVENUE	xxx	Direct	Total								
			Subtotal										
			SUBTOTAL NETWORK ACCESS 										
	5100-TOLL  NETWORK SERVICES REVENUE	5110-TOLL  MESSAGE SERVICE REVENUE	TOLLS - NTL                   	Direct			Total						
			TOLLS - BELL                  	Direct			Total						
			TOLLS - ONC                   	Direct			Total						
			TOLLS - COCHRANE PUC          	Direct			Total						
			TOLLS - ABITIBI               	Direct			Total						
			TOLLS - UNITEL                	Direct			Total						
			Subtotal										
		5128-PRIVATE NETWORK SERVICE REVENUE	CIRCUIT LEASE - PRIVATE LINES 	Direct					Total				
			CIRCUIT LEASES - PROG. SERVICE	Direct					Total				
			CIRCUIT LEASE - DATA SERVICES 	Direct					Total				
			CIRCUIT LEASE - DND           	Direct					Total				
			CN/CP                         	Direct					Total				
			Subtotal										
		 5126-SWITCHED DATA SERVICE REVENUE	DATAPAC                       	Direct					Total				
			TELEX REVENUE                 	Direct					Total				
			Subtotal										
			SUBTOTAL TOLL NETWORK										
	5200- OTHER OPERATING REVENUES	5230-DIRECTORY REVENUE	DIRECTORY ADVERTISING         	Direct								Total	
			Subtotal										
		5240-LEASED FACILITIES REVENUE	EXTERNAL                      	Associated	Note 1	Note 1	Note 1		Note 1				
			Subtotal										
		5250-CORPORATE OPERATIONS REVENUE	XXX	Direct								Total	
			Subtotal										
		5262-CUSTOMER OPERATI0NS REVENUE	EXTERNAL                      	Direct			Total						
			Subtotal										
		5263-PLANT OPERATIONS REVENUE	XXX	Direct								Total	
			Subtotal										
		5264-OTHER MISCELLANEOUS REVENUE	INTERNAL                      	Direct								Total	
			Subtotal										
		5270-CARRIER BILLING & COLLECTION REVENUE	XXX	Direct			Total						
			Subtotal										
			SUBTOTAL OTHER OPERATIONS										
	5300- UNCOLLECTIBLE REVENUE	5301-UNCOLLECTIBLE REVENUE TELECOM	BAD DEBT EXPENSE              	Direct			Total						
			Subtotal										
		5302-UNCOLLECTIBLE REVENUE OTHER	XXX	Direct								Total	
			Subtotal										
			SUBTOTAL UNCOLLECTIBLE										
OTHER INCOME	7100- OTHER OPERATING INCOME	7110-INCOME FROM CUSTOM WORK	XXX	Direct								Total	
			Subtotal										
		7150-GAINS AND LOSSES FROM DISPOSITION 	XXX	Direct								Total	
			Subtotal										
		7160-OTHER OPERATING GAINS AND LOSSES	XXX	Direct								Total	
			Subtotal										
			SUBTOTAL OTHER OPERATING INCOME										
	7300- NON OPERATING INCOME	7320-INTEREST INCOME	INTEREST                      	Direct								Total	
			Subtotal										
		7350-GAINS AND LOSSES FROM DISPOSITION 	XXX	Direct								Total	
			Subtotal										
		7360-OTHER NON OPERATING INCOME	XXX	Direct								Total	
			Subtotal										
			SUBTOTAL NON OPERATING INCOME										
			GRAND TOTAL										
Note													
1.  Associated assignment based on the assignment of COE equipment investments.													

4.2.1	The Assignment of Account 5000 Local Network Services Revenues
The Local Network Services Main Account accumulates the company’s revenues derived from the provision of service and equipment entirely within the basic service area. That area is defined as the normal boundaries for local calling plus Extended Area Service (EAS) boundaries as they apply to that service. It includes revenues derived from both local private network service and local public network services as well as from customer premises facilities services. Local revenues include associated charges such as one-time service connection or termination charges and secondary features such as call waiting associated with the delivery of local network services.  The summary account contains the following five Accounts:
•	Account 5001 Local Service Revenue
•	Account 5003 Cellular Mobile Service Revenue.
•	Account 5050 Customer Premises Revenue.
•	Account 5060 Other Local Exchange Revenue.
4.2.1.1	The Assignment of Account 5001 Local Service Revenue
The Local Service Revenue account includes revenues derived from the provision of basic area message service, extended area services and other local services including optional services.
•	Local Service Revenues are directly assigned to the Local BSC.
4.2.1.2	The Assignment of Account 5003 Cellular Mobile Service Revenue
The Cellular Mobile Service account includes message revenue derived from cellular mobile telecommunications systems connected to the public switched network placed between mobile units and other stations within the mobile service area.
•	Cellular Mobile Service Revenue is directly assigned to the Network Cellular BSC.
4.2.1.3	The Assignment of Account 5050 Customer Premises Revenues
The Customer Premises Revenue account includes revenue derived from the provision under leasing arrangements of tariffed single line and multi line customer premises equipment (CPE).
•	Customer Premises Revenue is directly assigned to the Terminal BSC.
4.2.1.4	The Assignment of Account 5060 Other Local Exchange Revenue
The Other Local Exchange Revenue account includes revenue derived from central office related service connection and termination charges, and other non-premise customer specific charges associated with public network services. This account also includes local revenue not provided for in other accounts.
•	Other Local Exchange Revenue is directly assigned to the Local BSC.
4.2.2	The Assignment of Account 5100 Toll Network Services Revenue
The Toll Network Services account accumulates the company’s revenues derived from the provision of toll services as well as the leasing of circuits for private network arrangements and the provision of switched data services.  The summary account contains the following three Accounts:
•	Account 5110 Toll Service Revenue.
•	Account 5126 Switched Data Service Revenue.
•	Account 5128 Private Network Service Revenue.
4.2.2.1	The Assignment of Account 5110  Toll Service Revenue
The Toll Service Revenue account includes revenues derived from the provision of toll message services. 
•	Toll Service Revenues are directly assigned to the Toll BSC.
4.2.2.2	The Assignment of Account 5126 Switched Data Service Revenue
The Switched Data Service Revenue account includes revenue derived from the provision of public switched data services.
•	Switched Data Service Revenue is directly assigned to the Network Other BSC.
4.2.2.3	The Assignment of Account 5128 Private Network Service Revenue
The Private Network Service account includes revenue derived from the leasing of circuits associated with private voice, data and broadcast networks.
•	Private Network Service Revenue is directly assigned to the Network Other BSC.
4.2.3	The Assignment of Account 5200 Other Operating Revenues
The Other Operating Revenues account accumulates the company’s revenues derived from directory advertising, the lease of facilities to other carriers,  and miscellaneous revenues.  The Main Account contains the following Accounts:
•	Account 5230 Directory Revenue.
•	Account 5240 Leased Facilities Revenue.
•	Account 5250 Corporate Operations Revenue.
•	Account 5262 Customer Operations Revenue.
•	Account 5263 Plant Operations Revenue.
•	Account 5264 Other Miscellaneous Revenue.
•	Account 5270 Carrier Billing and Collection Revenue.
4.2.3.1	The Assignment of Account 5230 Directory Revenue
The Directory Revenue account includes revenues derived from the provision of directory advertising. 
•	Directory Advertising Revenues are directly assigned to the Other BSC.
4.2.3.2	The Assignment of Account 5240 Leased Facilities Revenue
The Leased Facilities Revenue account includes revenues derived from the rental to others of telecommunications plant furnished apart from telecommunications services rendered by the company.
•	Leased Facilities Revenues are directly assigned to the Other BSC.
4.2.3.3	The Assignment of Account 5250 Corporate Operations Revenue
The Corporate Operations Revenue account include revenue derived from services rendered to other companies under a license agreement, general services contract, or other arrangement providing for the furnishing of general accounting, financial, legal, regulatory and other general services associated with the provision of regulated telecommunications services.
•	Corporate Operations Revenues are directly assigned to the Other BSC.
4.2.3.4	The Assignment of Account 5262 Customer Operations Revenue
The Customer Operations Revenue account includes revenue derived from the performance of customer operations services (e.g. operator services) for others incident to the company's regulated telecommunications operations.
•	Customer Operations Revenues are directly assigned to the BSC which accumulates the costs associated with the service provided.
•	Customer Operations Revenues associated with the provision of operator services are directly assigned to the Toll BSC.
4.2.3.5	The Assignment of Account 5263 Plant Operations Revenue
The Plant Operations Revenue account accumulates revenue from contract services (plant maintenance) performed for others incident to the company's regulated telecommunications operations
•	Plant Operations Revenues are directly assigned to the Other BSC.
4.2.3.6	The Assignment of Account 5264 Other Miscellaneous Revenue
The Other Miscellaneous Revenue account includes other internal miscellaneous revenue not assigned to other accounts.
•	Other Miscellaneous Revenue is assigned to the Other BSC.
4.2.3.7	The Assignment of Account 5270 Billing and Collection Revenue
The Billing and Collection Revenue account accumulates revenue derived from the provision of toll billing and collection services to other telecommunications companies
•	Billing and Collection Revenue is assigned to the Toll BSC.
4.2.4	The Assignment of Account 5300 Uncollectible Revenue
The Uncollectible Revenue account accumulates the company’s charges associated with uncollectible revenues.  The summary account contains the following two Accounts:
•	Account 5301 Uncollectible Revenue Telecom
•	Account 5302 Uncollectible Revenue Other
4.2.4.1	The Assignment of Account 5301 Uncollectible Revenue Telecom
The Uncollectible Revenue Telecom account accumulates the company’s charges associated with uncollectible revenues related to the provision of the company’s telecommunications services.
•	Uncollectible Revenues Telecom are assigned directly to the Toll BSC.
4.2.4.2	The Assignment of Account 5302 Uncollectible Revenue Other
The Uncollectible Revenue Other  account accumulates the company’s charges associated with uncollectible revenues not related to the provision of the company’s telecommunications services.
•	Uncollectible Revenues Other are assigned to the Other BSC.
4.2.5	The Assignment of Account 7100 Other Operating Income
The Other Operating Income account accumulates the company’s operating income from custom work as well as operating gains and losses from disposition.  The summary account contains the following Accounts:
•	Account 7110 Income from Custom Work
•	Account 7150 Gains and Losses from Disposition of Land and Artwork
•	Account 7160 Other Operating Gains and Losses.
4.2.5.1	The Assignment of Account 7110 Income from Custom Work
The Income from Custom Work account includes profits realised from custom work (plant construction) performed for others incident to the company's regulated telecommunications operations.
•	Income from Custom Work is directly assigned to the Other BSC.
4.2.5.2	The Assignment of Account 7150 Gains and Losses from Disposition of Land and Artwork.
This account includes include gains or losses resulting from the disposition of land or artworks.
•	Gains and Losses from Disposition of Land and Artworks are directly assigned to the Other BSC.
4.2.5.3	The Assignment of Account 7160 Other Operating Gains and Losses
This account records the results of transactions, events or circumstances which are of an operational nature, but occur irregularly or are peripheral to the major or central operations of the company and not provided for elsewhere.
•	Other Operating Gains and Losses are directly assigned to the Other BSC.
4.2.6	The Assignment of Account 7300 Non Operating Income
The Non Operating Income account accumulates the company’s interest income as well as non operating gains and losses from disposition..  The summary account contains the following three accounts:
•	Account 7320 Interest Income.
•	Account 7350 Gains and Losses from Disposition.
•	Account 7360 Other Non Operating Income.
4.2.6.1	The Assignment of Account 7320 Interest Income
The Interest Income account includes include interest on securities, including notes and other evidences of indebtedness, which are the property of the company.
•	Interest Income is directly assigned to the Other BSC.
4.2.6.2	The Assignment of Account 7350 Gains and Losses from Disposition.
This account includes gains or losses resulting from the disposition of non operating telecommunications plant not previously used in the provision of telecommunications services 
•	Gains and Losses from Disposition are directly assigned to the Other BSC.
4.2.6.3	The Assignment of Account 7360 Other Non Operating Gains and Losses
This account includes all other items of income and gains or losses from activities not specifically provided for elsewhere.
•	Other Non Operating Gains and Losses are directly assigned to the Other BSC.

5.	THE AVERAGE NET INVESTED BASE (ANIB)
5.1	Introduction
This section describes the method used to assign working capital, plant under construction(PUC) and Net Plant investment in order to develop the company’s Average Net Invested Base.(ANIB).
5.2	The Assignment of Working Capital
The average Working Capital is assigned to the BSC’s as follows:
•	Working Capital is assigned to the BSC’s in the same proportion as the assignment of Net Plant investment.
5.3	The Assignment of Plant Under Construction
Plant Under Construction is assigned to the BSC’s as follows:
•	Plant Under Construction is assigned to the Toll and Network Other BSC’s in the same proportion as the assignment of Net Plant investment to these BSC’s.
5.4	The Assignment of Net Plant Investment
Net Plant Investment is assigned to the BSC’s as follows:
•	Net Plant Investment is assigned to the BSC’s on an investment account specific basis in the same proportion as the assignment of the Gross Plant investment of the equivalent account to the BSC’s.

6.	PRESENTATION OF COSTING RESULTS
The Costing Results are presented in terms of two components:
•	The Income Statement.
•	The Average Net Invested Base (ANIB).

The Presentation of Results for the Income Statement and the ANIB are as illustrated in Table 6-1 and Table 6-2 on page.6-2.

Table 6-1:  Presentation of Costing Results Income Statement
Table 6-1:  Presentation of Costing Results Income Statement	
Item	$	Access	Local	Toll	Network	Terminal	Common	Other	
								Cellular	Other							
		Ratio	$	Ratio	$	Ratio	$	Ratio	$	Ratio	$	Ratio	$	Ratio	$	Ratio	$	
Operating Revenues 																		
Plant Operations Expenses																		
Network Operations Expenses																		
Access Expenses																		
Depreciation and Amortisation																		
Customer Operations Expenses																		
Corporate Operations Expenses																		
Operating Taxes																		
Total  Operations Expenses																		
Net Operating Revenues																		
Non Operating Income																		
Net Income Actual																		
Net Income Theoretical  @ X %																		
Net Income Assignment																		
Surplus/Shortfall																		

Table 6-2:  Presentation of Costing Results ANIB
Table 6-2:  Presentation of Costing Results ANIB	
Item	$	Access	Local	Toll	Network	Terminal	Common	Other	
								Cellular	Other							
		Ratio	$	Ratio	$	Ratio	$	Ratio	$	Ratio	$	Ratio	$	Ratio	$	Ratio	$	
Ave. Working Capital																		
Ave. Capital Work in Progress																		
Ave. Investment in Capital Assets																		
Total																		

7.	CALCULATION OF THE CONTRIBUTION REQUIREMENT
The Contribution Requirement associated with the company’s local exchange areas  is to be calculated as follows:
•	Allocate the Common BSC expenses across all other BSCs in proportion to the operating expenses previously assigned to the other BSCs, and allocate the Common BSC investment in proportion to the Average Net Invested Base (ANIB) of the other BSCs.  
•	Remove all revenues, investment and expenses associated with cellular and terminal operations from the appropriate BSCs, and calculate the revised surplus/shortfall for the applicable BSCs.  This represents the removal of the Network Cellular and Terminal BSC’s.
•	Add the surplus/shortfall of the Access and Local BSCs;
•	If there is a surplus in the Other BSC, add it to the result of the previous step.

The Presentation of Results associated with the Calculation of the Contribution Requirement is illustrated in .Table 7-1 (page 7-2) and Table 7-2 (page 7-3).

Table 7-1:  Presentation of Results Calculation of Contribution Requirement Common Assigned
Table 7-1:  Presentation of Results Calculation of Contribution Requirement Common Assigned	
Item	$	Access	Local	Toll	Network	Terminal	Other	
								Cellular	Other					
		Ratio	$	Ratio	$	Ratio	$	Ratio	$	Ratio	$	Ratio	$	Ratio	$	
Operating Revenues 																
Plant Operations Expenses																
Network Operations Expenses																
Access Expenses																
Depreciation and Amortisation																
Customer Operations Expenses																
Corporate Operations Expenses																
Operating Taxes																
Assigned Common:																
Plant Operations Expenses																
Network Operations Expenses																
Access Expenses																
Depreciation and Amortisation																
Customer Operations Expenses																
Corporate Operations Expenses																
Operating Taxes																
Total  Operations Expenses																
Net Operating Revenues																
Non Operating Income																
Assigned Common																
Non Operating Income																
Net Income Actual																
Net Income Theoretical  @ X %																
Net Income Assignment																
Surplus/Shortfall																

Table 7-2:  Presentation of Results Calculation of Contribution Requirement Terminal and Cellular Removed
Table 7-2:  Presentation of Results Calculation of Contribution Requirement Terminal and Cellular Removed	
Item	$	Access	Local	Toll	Network	Other	
								Other			
		Ratio	$	Ratio	$	Ratio	$	Ratio	$	Ratio	$	
Operating Revenues 												
Plant Operations Expenses												
Network Operations Expenses												
Access Expenses												
Depreciation and Amortisation												
Customer Operations Expenses												
Corporate Operations Expenses												
Operating Taxes												
Total  Operations Expenses												
Net Operating Revenues												
Non Operating Income												
Net Income Actual												
Net Income Theoretical  @ X %												
Net Income Assignment												
Surplus/Shortfall												

8.	CALCULATION OF THE CARRIER ACCESS TARIFF (CAT)
The company’s Carrier Access Tariff (CAT) includes up to three components:
•	The Contribution component.
•	The Switching and Aggregation component.
•	The Equal Access component.
8.1	The Contribution Component.
The Contribution component of the CAT s is applicable to traffic originating and terminating in the company’s local exchange areas.
•	The Contribution component is calculated by dividing the contribution requirement as calculated in the previous section by the total number of real and equivalent message toll minutes originating and terminating in the company’s local exchanges.
8.2	The Switching and Aggregation Component.
The Switching and Aggregation component of the CAT is applicable to all message toll traffic originating and terminating in the company’s serving area over the company’s facilities.
•	The Switching and Aggregation component is calculated by dividing the causal costs associated with providing the switching and aggregation service by total number of real and equivalent message toll minutes originating and terminating in the company’s serving area.
•	The causal costs include direct costs associated with the use of the company’s plant resources and direct expenses, and indirect and variable common costs applied to the identified direct costs.
•	The details of the methodology associated with calculating this CAT component is not contained in this Procedures Manual.  It is detailed in the company’s Procedures Manual for Economic Studies and Resource Cost Studies.
8.3	The Equal Access Component.
The Equal Access component of the CAT is applicable to all message toll traffic originating and terminating in the company’s serving area over the company’s facilities.
•	The Equal Access component is calculated by amortising the equal access costs identified in the company’s investment accounts (Account 2680 Amortisable Tangible Assets) over a period of 10 years and dividing this amount by the total number of real and equivalent message toll minutes originating and terminating in the company’s serving area.

9.	DEVELOPMENT OF THE SPLIT RATE BASE
The Split Rate Base consists of two segments:
•	The Utility Segment.
•	The Competitive Segment.
The Calculation of the Split Rate Base is illustrated in Table 9-1 and Table 9-2.

As noted in Table 9-1 CAT Revenues associated with Contribution and Equal Access are assigned to the Utility Segment since this segment bears the costs associated with these CAT components.  However, the CAT revenues associated with Switching and Aggregation are assigned to the Competitive segment since all Switching and Aggregation costs are borne by the Competitive segment.
9.1	The Utility Segment
The Utility segment encompasses the Access, Local and Other BSC’s.
9.2	The Competitive Segment
The Competitive segment encompasses the Toll, Network Cellular, Network Other, and Terminal BSC’s.
9.3	Presentation of Split Rate Base Results
Split Rate Base Results are presented in terms of the Utility and Competitive Segments as detailed in Table 9-1 and Table 9-2:

Table 9-1:  Presentation of Results Income Statement Split Rate Base
Table 9-1:  Presentation of Results Income Statement Split Rate Base	
Item	$	Utility	Competitive	
		Ratio	$	Ratio	$	
Operating Revenues 	X		X		X	
CAT Revenues Contribution	X		X			
CAT Revenues  Switching and Aggregation	X				X	
CAT Revenues Equal Access	X		X			
Total Revenues	X		X		X	
Imputed CAT Expenses Contribution	X				X	
Imputed CAT Expense Equal Access	X				X	
Plant Operations Expenses	X		X		X	
Network Operations Expenses	X		X		X	
Access Expenses	X		X		X	
Depreciation and Amortisation	X		X		X	
Customer Operations Expenses	X		X		X	
Corporate Operations Expenses	X		X		X	
Operating Taxes	X		X		X	
Total Operations Expenses	X		X		X	
Net Operating Revenues	X		X		X	
Non Operating Income	X		X		X	
Net Income Actual	X		X		X	
Net Income @ X %	X		X		X	
Net Income Assignment	X		X		X	
Surplus/Shortfall	X		X		X	
Table 9-2: Presentation of Results ANIB Split Rate Base
Table 9-2:  Presentation of Results ANIB Split Rate Base	
Item	$	Utility	Competitive	
		Ratio	$	Ratio	$	
Ave. Working Capital 	X		X		X	
Ave. Capital Work in Progress	X		X		X	
Ave. Investment Capital Assets	X		X		X	
Total	X		X		X	

10.	THE TRAFFIC STUDY METHODOLOGY
This section describes the method used to develop the average busy season busy hour traffic ratio associated with the Local Switching Study for traffic sensitive joint use components.

This study is carried out at the Timmins Toll Centre by measuring the traffic on toll connecting trunks from the company’s local exchanges to measure toll traffic at these local exchanges and imputing a 3.1 c.c.s per main station at each local exchange in order to estimate the total traffic at the exchange in the corresponding average busy hour.
10.1	The Busy Season.
Determine the busy season.  The busy season for purposes of this study is defined as the calendar month having the highest toll average busy hour in the calendar year at the local exchanges.  This average is calculated in two steps.
•	Accumulate the total traffic for each hour on the Toll Centre toll connecting trunks (e.g. from 0800 to 2300 hours) for each day of the month and divide the result obtained for each hour by the number of days in the month in order to establish the average busy hour for the month.
Example: 
Measure					Month								Hour									Toll C.C.S					Average C.C.S

1										September						08:00-09:00					50,000						50,000/30 = 1,666
2										September						09:00-10:00					150,000					180,000/30 = 6,000
3										September						10:00-11:00					125,000					125,000/30=5,500
15									September 						22:00-23:00					40,000						40,000/30 = 1,333.  

Therefore for the month of  September, the average busy hour is from 0900 to 1000 hours with traffic of 6,000 c.c.s.
•	Compare the results obtained for the months whose average busy hour was measured and choose the month with the highest average busy hour as the busy season..
Example:
Measure				Month								Ave. Busy Hour						C.C.S

1									September						09:00-10:00								6,000
2									October								11:00-12:00								7,000
3									November						10:00-11:00								6,500

Therefore the month of October is chosen as the busy season since October has the highest average busy hour traffic at 7,000 c.c.s.
10.2	The Busy Hours in the Busy Season.
Determine, for each day in the Busy Season, the maximum toll traffic utilisation on the toll connecting trunks during a one hour period during the day.  This one hour period could be on the hour or half hour.
Example.
The 1st of October , from 10:30 to 11:30 hours:	7,500 C.C.S
The 2nd of October, from 10:00 to 11:00 hours:	6,000 C.C.S
10.3	The Average Busy Hour.
Determine the average of the Busy Hours obtained in the previous step, for the 10 days whose Busy Hours are the highest and calculate the Local/Toll ratio from this data using the 3.1 c.c.s  total traffic proxy.
Example:
Measure				Day 					Busy Hour						Total C.C.S 					Toll C.C.S 

1									1							10:30-11:30					7,500								 2,000
2									3							15:30-16:30					6,500								1,000
3									5							10:00-11:00					5,500								2,500
4									9							10:30-11:30					6,000								2,000
5									11						11:00-12:00					8,000								1,000
6									12						11:00-12:00					7,500								2,500
7								10							10:30-11:30					9,000								1,500
8								25							16:30-17:30					6,300								2,000
9								27							11:00-12:00					7,500								1,800
10							30							15:00-16:00					8,400								2,000
TOTAL															72,200						18,300
10.4	The Toll Traffic Ratio.
Therefore the Local/Toll ratio is 18,300/72,200 = 25.3%.  In other words the Toll ratio is 25.3% and the Local ratio is 74.7% (e.g. 100 % - 25.3%).