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Order CRTC 2001-506
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Ottawa, 29 June 2001
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Téléphone Milot inc.
Tariff Notice 15
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Residential local service rate increase
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| 1. |
On 15 March 2001, the Société d'administration des tarifs
d'accès des télécommunicateurs filed, on behalf of Téléphone
Milot Inc., an application for an interim residential local rate
increase of $1.25, effective 1 July 2001, to reduce its contribution
requirement to no more than 25% of its revenue requirement.
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| 2. |
The proposed rate change was filed pursuant to Review of
contribution regime of independent telephone companies in Ontario
and Quebec, Telecom Decision CRTC 99-5, dated 21 April 1999. |
| 3. |
In the Commission's orders related to the plans filed by the
Ontario independent telephone companies to reduce their contribution
requirement to no more than 25% of their total revenue requirement,
the Commission stated that average total local and access broad
service category Phase III costs, compared to service specific
revenues, was an appropriate means to measure whether or not
business service rates are compensatory. The Commission notes that
Milot has provided evidence demonstrating that its local business
service rate is compensatory, based on the above test.
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| 4. |
Milot requested an interim residential local rate increase to
allow it to account for revenue losses that may flow from Bell
Canada's plan to take over its own billing and collection of long
distance services in Milot's territory. The Commission finds that
the amount of contribution received by Milot will not be affected if
Bell Canada takes over the billing and collection of its long
distance services. The Commission notes that Milot has a specific
tariff rate to recover costs for providing billing and collection
for toll services. This rate is separate from the calculation of its
contribution requirement. The Commission therefore approves Milot's
residential local rate increase on a final basis.
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| 5. |
Based on the evidence filed, the Commission approves Milot's
residential local rate increase of $1.25 on a final basis in order
to reduce its contribution requirement to no more than 25% of its
revenue requirement.
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| 6. |
The revision takes effect on 1 July 2001. |
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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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