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Letter
Our file: 8678-C12-09/00
Ottawa, 29 January 2001
To: PN 2000-99
Interested parties
Re: Preparation for price cap review
The Commission anticipates issuing a Public Notice in early 2001 that will
initiate a proceeding to review price caps for the former Stentor companies. In Proceeding
to determine the scope of the price cap review, Public Notice CRTC 2000-99,
dated 14 July 2000 (PN 2000-99), the Commission had indicated that Saskatchewan
Telecommunications (SaskTel) would also be part of this process, although
SaskTel is not currently regulated under price caps.
In PN 2000-99, the Commission requested interested parties to provide
comments on the current price cap regime and to identify issues to be considered
in the upcoming price cap review. Subsequent to the close of the PN 2000-99
record, the Commission was informed that representatives of various industry
stakeholders have initiated a series of consultations, with a view to issuing a
proposal to the Commission regarding the regulatory regime that will follow the
current price cap period.
While the Commission is hopeful that the outputs of these consultations will
be issued in time to be considered by the Commission in its preparation of the
upcoming Public Notice, the price cap review may need to commence prior to the
outcome of these industry discussions.
Service improvement plans (SIPs)
In Telephone service to high cost serving areas, Telecom Decision CRTC
99-16, dated 19 October 1999 (Decision 99-16), the Commission directed all
incumbent local carriers to file SIPs for Commission approval, or to demonstrate
that the basic service objective, outlined in Decision 99-16, has been and will
continue to be achieved in their territory. The Commission noted, in the
decision, that many of the former Stentor companies have significant programs
underway to improve service. The Commission further noted that it would consider
these companies’ proposals for additional upgrades and improvements in the
proceeding to review price caps.
Decision 99-16 did not apply to SaskTel, since the company was not federally
regulated at that time. However, in SaskTel - Transition to federal
legislation, Telecom Decision CRTC 2000-150, dated 9 May 2000, the
Commission noted that it would consider, in a future proceeding, how Decision
99-16 would apply to SaskTel once the company came under the Commission’s
jurisdiction.
The Commission considers that it would be appropriate to initiate the filing
of information on the SIPs prior to the commencement of the price cap review.
Accordingly, the following companies are directed to file, within 45 days of the
date of this letter, their respective SIPs or demonstrate that the basic service
objective has been and will continue to be achieved in their territory:
- TELUS Communications Inc., separately for the territories served prior to
1 January 2001 by TELUS Communications (B.C.) Inc. and TELUS
Communications Inc;
- Aliant Telecom Inc., separately for the territories served prior to 1
January 2001 by Island Telecom Inc.; Maritime Tel & Tel Limited; NBTel
Inc; and NewTel Communications Inc.;
- MTS Communications Inc.; and
- SaskTel.
The SIPs should include roll-out plans as well as annual and cumulative
planned capital expenditures for each year of the SIP, by major asset category
(e.g. switching hardware, switching software, transmission, outside plant,
wireless, station, operational support systems, buildings, and other). In
addition, any operating costs (e.g. maintenance) related to the planned SIP
capital expenditures should be provided on an annual and cumulative basis.
Companies are to indicate whether least-cost technology has been used and
justify their choice of any alternatives to least-cost technology. Companies are
also to provide a proposed tracking plan that will monitor the progress of the
service extension and upgrade programs. Any issues regarding the recovery of
costs associated with the SIPs will be addressed in the price cap review
proceeding.
Yours sincerely,
Ursula Menke
[français]
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