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News | 10/21/2002 4:00 am EDT

Microcell files R&V application over expanded LCA framework
Microcell Telecommunications Inc. is concerned that it would have to contribute to a cross-subsidy program to compensate interexchange carriers (IXCs) over lost toll revenue from an expanded local calling area (LCA) when it wouldn’t be able to draw from the same pool as ILECs and other CLECs. In a Review and Vary application filed with the CRTC on October 10, the country’s only wireless CLEC wants the regulator to strike down provisions that mandate CLEC participation in the program.
Microcell says it’s unfair for the commission to presume that CLECs would follow ILECs’ rate increases to cover the cost of contributing to the subsidy pool. It also notes that as a wireless CLEC it would be nearly impossible to implement rate increases similar to those by ILECs or even wireline CLECs.
"How does Microcell translate an ILEC local rate increase of say $0.50 per month in a particular location into a per-minute rate increase? Would we be expected to sell pre-paid calling cards at difference prices in different locations?" the company asks in its filing.
The wireless operator wants the CRTC to implement an opt-in or opt-out model whereby a CLEC that wants to be able to draw from the pool to recoup lost toll revenue would have to first indicate its intent to participate in the program. Reply comments to Microcell’s R&V application are due November 9.

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