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Telecom Decision CRTC 2002-16
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Ottawa, 19 March 2002
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TELUS Communications (Québec) Inc.'s proposed service
improvement plan
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Reference: 8678-C12-10/01
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Summary
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In this decision, the Commission approves part of a proposed
service improvement plan (SIP), submitted by TELUS Communications
(Québec) Inc. (TELUS Québec; the company), that will allow the
company to meet the Commission's basic service objectives in three
small communities in northern Quebec. The Commission also approves a
TELUS Québec proposal to relieve network congestion. The Commission
also directs the company, among other things, to consult with
stakeholders about extending service to unserved dwellings and to
file a further SIP no later than 20 December 2002.
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The application
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1. |
In a letter to the Commission dated 26 February 2002, TELUS
Communications (Québec) Inc. (TELUS Québec; the company) requested
accelerated approval of its proposed service improvement plan (SIP)
considered in the proceeding initiated by Implementation of price
cap regulation for Québec-Téléphone and Télébec, Public
Notice CRTC 2001-36, 13 March 2001 (PN
2001-36). To support its
request for accelerated approval, TELUS Québec cited the short
construction season in the north and the urgent need to implement
planning initiatives.
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2. |
In Telephone service to high-cost serving areas, Telecom
Decision CRTC 99-16, 19 October 1999 (Decision
99-16), the
Commission:
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· directed all incumbent local carriers to file SIPs for
Commission approval, or to demonstrate that the basic service
objectives set out in the Decision (the basic service objectives)
have been and will continue to be achieved in their territory; and
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· determined that incumbent local carriers should consult
stakeholders prior to preparing their SIPs.
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The Commission also indicated that the communities and other
organizations affected would have an opportunity to comment on the
reasonableness of the carriers' proposals before the Commission
ruled on them. |
3. |
In the proceeding initiated by PN 2001-36, TELUS Québec proposed
a SIP that would: |
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· allow the company to meet the basic service objectives in
three small locations, namely l'Île-aux-Grues, Grosse-Île and
Aylmer Sound; and
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· improve the company's network by relieving network
congestion in the Basse-Côte-Nord and other high-cost areas,
caused by high usage of the Internet.
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4. |
The company emphasized the social and economic benefits of the
Internet for remote areas, including its use in education and
telemedicine, and the importance of being able to access the
Internet on an ongoing basis. |
5. |
The company also submitted that relieving network congestion
meets a Commission goal, outlined in Decision 99-16, to maintain
service levels and ensure that existing service levels do not erode
under competition. |
6. |
The Commission did not receive any comments from interested
parties on TELUS Québec's proposed SIP.
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7. |
The Commission approves, as a SIP, the company's capital
expenditures required to meet the basic service objectives in
l'Île-aux-Grues, Grosse-Île and Aylmer Sound.
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8. |
As regards the proposed network improvements to relieve network
congestion in the Basse-Côte-Nord and other high-cost areas, the
Commission does not consider that these fall within the terms of a
SIP, since they do not directly address the basic service
objectives. The Commission considers instead that the proposed
network improvements are in the nature of ongoing capital
expenditures that a telephone company would make in the ordinary
course of business to meet anticipated demand. Such expenditures
would normally be included in a company's construction or capital
investment program. The Commission considers these expenditures to
be reasonable and approves them as a network improvement
plan. The Commission considers that these capital expenditures
should be included as part of the company's going-in revenue
requirement under the price cap arrangements to be established in
the proceeding initiated by PN 2001-36.
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9. |
As regards the recovery of the SIP and the network improvement
capital expenditures, these matters will be addressed in the
Commission's decision in the proceeding initiated by PN 2001-36.
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Other SIP matters
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10. |
Early in the proceeding initiated by PN 2001-36, TELUS Québec
responded to a series of Commission interrogatories. The company
stated that there were no unserved areas in its serving territory
and hence, was of the view that there was no matter on which
consultation with stakeholders was required and no need to propose a
SIP to address requests for service. Further, the company was of the
view that its existing tariffs covered any requests for service in
its serving territory.
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11. |
However, at the oral public hearing in Québec City that began on
13 November 2001, as part of the PN 2001-36
proceeding, TELUS
Québec acknowledged that there may well be unserved dwellings in
its serving territory. The company also stated that, following
Decision 99-16, it did not attempt to review past service requests
to determine whether those persons who had requested service might
wish to be included in the company's SIP.
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12. |
The Commission considers that the requirements in Decision 99-16
with regard to consultation with stakeholders apply to unserved
dwellings regardless of whether they are in served or unserved areas
of an incumbent local carrier's serving territory. Accordingly, the
Commission directs TELUS Québec to consult with stakeholders prior
to proposing a further SIP by 20 December 2002 to address service to
unserved dwellings. To this end, TELUS Québec is directed to:
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a) inform the Commission, within 40 days of this decision, of
its plans to identify unserved dwellings and to consult with
stakeholders;
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b) submit to the Commission the results of the consultations
with stakeholders by 20 September 2002; and
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c) no later than 20 December 2002, file for Commission approval
a further SIP to extend service to unserved dwellings.
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Secretary General
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This document is available in alternative format upon request
and may also be examined at the following Internet site: http://www.crtc.gc.ca
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