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Telecom Order CRTC 2005-94
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Ottawa, 9 March 2005 |
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Bell Canada
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Reference: Tariff Notice 6851 |
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Business primary exchange (local) service
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1. |
The Commission received an application by
Bell Canada, dated 1 February 2005, to revise General Tariff item 70.2,
Rate Schedules for Primary Exchange (Local) Service - Business Service,
in order to increase the monthly rates for flat rate individual line
business primary exchange service in rate bands A, B, C and sub-bands
E1, F1, F3, and F5 by $0.80 per line. Bell Canada also proposed to
increase the monthly rates for one- and three-year minimum contract
period options by $0.80 per line. |
2. |
Bell Canada submitted that none of the
proposed increases exceed the 10% rate element constraint. |
3. |
The Commission received no comments with
respect to the application. |
4. |
In Regulatory framework for second price
cap period, Telecom Decision CRTC 2002-34,
30 May 2002 (Decision 2002-34),
the Commission applied a number of constraints to the rates for services
in the single and multi-line business local exchange services basket,
in order to provide customers of those services with price protection.
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5. |
The pricing constraints which apply to
services in the single and multi-line business local exchange services
basket include: |
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- a basket constraint, operating through the service basket limit (SBL)
for that basket, which must be updated annually by the rate of
inflation;
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- rate element constraint limiting rate increases for a service to
10% per year; and
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- a provision, in order to prevent an incumbent local exchange
carrier from decreasing rates in more competitive areas and increasing
rates in less competitive areas of the same band, that rates for
business local exchange services should not generally be permitted to
be further de-averaged within a band.
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6. |
The Commission notes that the proposed
increases do not exceed 10% and that the proposed tariff revisions
comply with the basket constraint requirement that the service basked
index not exceed the SBL for the single and multi-line business local
exchange services basket. |
7. |
The Commission further notes that the
proposed tariff revisions comply with the Commission's prohibition
against further de-averaging rates for single and multi-line business
local exchange services within a band. |
8. |
Accordingly, the Commission finds that the
proposed tariff revisions are in accordance with the Commission's
determinations in Decision 2002-34. |
9. |
The Commission approves Bell
Canada's application. The revisions take effect as of 1 April 2005. |
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Secretary General |
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This document is available in alternative
format upon request, and may also be examined in PDF
format or in HTML at the following Internet site: http://www.crtc.gc.ca
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