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Order CRTC 2000-980
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Ottawa, 26 October 2000 |
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Bell Canada Installment Payment Plan
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Reference: Tariff Notice 6489
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The Commission approves, with some changes, Bell Canada's proposed
Installment Payment Plan for construction charges. The Commission directs
Bell Canada to amend its plan by allowing installment payments to be
spread over a period of up to 36 months and to charge interest on the
unpaid balance at the company's cost of capital.
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1. |
Order CRTC 2000-351, dated 28 April 2000,
directed Bell Canada to file a proposed tariff giving customers the
option to pay for service extensions not covered by a Service Improvement
Plan on a reasonable installment basis.
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2. |
Bell Canada proposed the following terms for the Installment Payment
Plan (IPP): |
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· Installment payments may be spread over a period of up to 12
months. |
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· Interest is charged on the unpaid balance at the late payment
charge rate (prime plus 7%). |
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· A minimum deposit of 20% of the construction charge is to be paid
prior to the start of construction. |
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· Maximum construction charges of $10,000 per customer premise are
eligible for the IPP. |
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· IPP is available to residence customers only. |
3. |
Bell Canada stated that its approach is consistent with the concerns
outlined by the Commission with respect to penetration rates for lower
income groups, as well as the need to maintain affordable telephone
service for the vast majority of Canadian households. |
4. |
The Commission considers that the Installment Payment Plan will meet
the above requirements, with the following to replace the first two terms
outlined above:
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· Installment payments may be spread over a period of up to 36
months. |
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· Interest is charged on the unpaid balance of construction charges
at the rate of Bell Canada's cost of capital. |
5. |
The Commission directs the company to issue revised tariff pages with
an effective date of 27 November 2000.
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6. |
Bell Canada filed the application on 27 June 2000 to revise Item
150 of its General Tariff.
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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 |