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Telecom Order CRTC 2005-5
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Ottawa, 5 January 2005 |
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MTS Allstream Inc.
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Reference: Tariff Notice 545 |
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Rate Schedule for Primary Exchange Service
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1. |
The Commission received an application by
MTS Allstream Inc. (MTS Allstream), dated 22 November 2004, to revise
General Tariff item 475, Rate Schedule for Primary Exchange Service,
proposing the following revisions: |
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- increases to the monthly non-contracted multiline business service
rates by $1.00 across all Rate Bands or increases ranging between 1.9
percent and 2.1 percent; and
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- increases to the monthly contracted multiline business service
rates, which are available only in Rate Bands A, B and C, by $0.75 for
1-year contracts, $0.50 for 3-year contracts and $0.25 for 5-year
contracts, or increases ranging between 0.6 percent and 1.7 percent.
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2. |
MTS Allstream submitted that the proposal
complied with the pricing constraints set out in Regulatory framework
for second price cap period, Telecom Decision CRTC 2002-34,
30 May 2002 (Decision 2002-34). |
3. |
The Commission received no comments with
respect to the application. |
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Commission's analysis and determination
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4. |
In 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. |
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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- a rate element constraint limiting rate increases for a service to
10 percent 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 to the monthly rates for the multi-line business services do
not exceed the rate element constraint of 10 percent. The Commission
finds that the proposed tariff revisions comply with the basket
constraint requirement that the service basket index not exceed the SBL
for the Single and Multi-line Business Local Exchange Services basket. |
7. |
The Commission also finds that the proposed
tariff revisions comply with the Commission's prohibition, set out
in Decision 2002-34,
against further de-averaging of rates for business local exchange
services within a band. |
8. |
Accordingly, the Commission considers that
MTS Allstream's proposal is consistent with the pricing constraints
established in Decision 2002-34. |
9. |
The Commission approves MTS Allstream's
application. The revisions take effect as of the date of this Order. |
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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 |