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Telecom Order CRTC 2005-323
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Ottawa, 16 September 2005 |
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Competitor Digital Network Services - Other Central Office
Connecting Link (copper-based)
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Reference: TCI Tariff Notice 168 |
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1. |
The Commission received an application
by TELUS Communications Inc. (TCI), dated 21 March 2005, in response
to paragraph 525 of Competitor Digital Network Services, Telecom Decision
CRTC 2005-6,
3 February 2005 (Decision 2005-6),
where the Commission noted that a separate Competitor Digital Network
(CDN) Other Central Office (CO) Connecting Link (copper-based) (CDN
CO Copper Link), to be classified as a Category 1 Competitor
Service, may be required for certain service configurations. These
configurations involve competitor requests for links between the following
CDN services: intra-exchange, metropolitan interexchange and channelization.
In its application, TCI requested Commission approval of revisions
to its Carrier Access Tariff, item 224, CDN Services, to introduce
the CDN CO Copper Link service at a monthly rate of $4.23 per link. |
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2. |
With respect to the costs submitted, in
support of its application TCI indicated that the installation of each
CDN CO Copper Link required CO technician time, including the
application of a portfolio expense factor.1 |
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3. |
On 30 March 2005, the Commission posed
interrogatories to TCI that requested, among other things: a break-down
of the proposed labour costs into the number of hours of CO technician
time by activity; the associated average labour unit cost broken down by
major cost component; and an explanation as to how the portfolio expense
had been developed. |
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4. |
In its response to interrogatories, dated
15 April 2005, TCI submitted that the CO technician labour costs were
incurred on a one-time basis and were treated as expenses for accounting
purposes. TCI further submitted that it would be appropriate to recover
such costs through an up-front, one-time service charge, and not through
the monthly rate proposed in its application. TCI proposed a one-time
service charge of $346.49. |
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5. |
On 29 April 2005, Call-Net Enterprises
Inc., now Rogers Telecom Holdings Inc. (Rogers Telecom), filed comments
regarding TCI's application. Rogers Telecom submitted that the proposed
rate for the CDN Copper Link service was higher than TCI's approved rate
for a similar Category 1 service, Connecting Links A and B. Rogers
Telecom further submitted that the record of this proceeding provided no
justification for the difference in rates between the two types of
connecting links. |
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6. |
In its reply comments, dated 9 May 2005,
TCI submitted that the Connecting Links A and B tariff provided for a
100 pair cable which was installed at one time to the TCI co-location
site. TCI further submitted that, in the case of the proposed CDN CO
Copper Link service, the cable provided was a 4-wire or co-axial jumper
that was individually installed for each circuit connected to the
applicable equipment. TCI argued that it would therefore be incorrect to
compare the costs between the two solutions on a per circuit basis. |
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Commission's analysis and determinations
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7. |
The Commission notes that, by letter dated
21 July 2005, TCI indicated that it would not have the regulatory,
marketing and technical resources required to participate fully in
Commission proceedings due to labour disruption it is experiencing in
Alberta and British Columbia. TCI further indicated that, upon
resolution of the labour disruption, TCI would undertake to advise the
Commission, as soon as practicable, of TCI's readiness to rejoin
proceedings. |
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8. |
The Commission notes that TCI's
interrogatory response identified that the costs associated with the
provisioning of the CDN CO Copper Link occurred on a one-time basis and
were treated as an expense item. Accordingly, the Commission considers
that it would be appropriate to charge such costs as a one-time service
charge, as proposed by TCI in its interrogatory response. |
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9. |
In light of the above and with regard to
ensuring that competitors are able to avail themselves of this CDN
service component in TCI's operating territory, the Commission
approves on an interim basis, effective the date of this Order, a
Service Order Charge of $180.55 per CDN CO Copper Link. This rate
reflects costs associated with the CDN CO Copper Link and includes a
mark-up of 15 percent. |
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10. |
The Commission notes that the one-time
service order charge for this service will be revised to reflect the
application of an appropriate portfolio expense and any other issues
pertaining to TCI's application once the labour disruption TCI is
experiencing in Alberta and British Columbia is over. |
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11. |
In light of the above, the Commission
considers it appropriate for TCI to track competitor demand for the CDN
CO Copper Link service until final disposition of this application, in
order to allow for any billing adjustments that may be required. |
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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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