Call-Net accuses ILECs of mishandling loop service charges, asks for CRTC review

The major ILECs east of the Rockies deny accusations by a competitor that they are not applying a CRTC directive on unbundled loop-service in the proper manner. Call-Net Enterprises Inc. has asked the CRTC to clarify certain provisions of a November 2001 ruling giving interim approval for revised unbundled loop-service order charges – Decision 2001-694. The Sprint Canada parent says it is concerned about the application of rates on residential customers in multiple-dwelling units (MDUs). "One of the determinations was to create two variable-rate per-loop charges, one for business customers and one for residential customers," Jean Brazeau, senior VP government and regulatory affairs, writes in a Feb. 4 submission to the commission. "However, in revising their tariffs, the ILECs have applied the business variable-rate per-loop charge to all residential MDU customers. Because these revisions were made outside the normal tariff process, interested parties had no opportunity to challenge or comment on them." But four ILECs cite a CRTC directive from two years earlier to bolster their defence. David Palmer, Bell Canada’s director of regulatory matters, replied last week on behalf of his firm, Aliant Telecom Inc., MTS Communications Inc., and SaskTel. "In Decision 99-15 the commission recognized that providing local loops in MDUs entails activities and costs analogous to the supply of loops to business customers and allowed for the application of business service order charges to be applied to unbundled loop requests for all customers in MDUs," Palmer responds. "The distinction was provided in recognition of the fact that the costs associated with providing unbundled loops in MDUs are indeed higher that that incurred for single-unit dwellings." The current tariff scheme puts business charges on residential MDU customers. Call-Net believes residential rates should be the same, whether the consumer is in an MDU or a single unit. The same should apply for business services, the CLEC says. The incumbents reject Call-Net’s suggestion that Decision 99-15 applies only to the "fixed-order" component of the business loop service order charge. The term "business loop service order", the companies maintain, applies to both fixed-rate and variable-rate parts of the loop service order charge. The CLEC alleges switching customers in apartment buildings is costlier than moving clients in houses. That, it states, is against CRTC policy. "As a result of the ILECs’ actions, it would cost Call-Net over 15 per cent more to migrate a residential customer in an MDU versus a residential customer in a single dwelling living next door," Brazeau states. "This is obviously contrary to the letter and intent of Decision 2001-694." The ILECs are not willing to concede that point at all. They argue that the intent of last year’s ruling was to set appropriate rates for the unbundled loop-service charges. "At the conclusion of a lengthy and detailed proceeding, in Decision 99-15 the commission found that the activities and costs associated with provisioning loops in MDUs were most closely analogous with those associated with business loops," Palmer writes. "And at no time since then has the commission called that finding into question. The loop provisioning rates in the companies’ tariffs reflect the commission’s findings and Call-Net has tendered no evidence to bring these finding into question. The companies submit that the commission’s finding regarding the treatment of costs and activities associated with the provisioning of loops in MDUs is appropriate." Call-Net is asking the CRTC to order the revision of the tariffs. The ILECs counter that the competitor has misunderstood the ruling and want the decision to remain unamended.

Call-Net accuses ILECs of mishandling loop service charges, asks for CRTC review

News | 02/26/2002 5:00 am EST

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