Bell revises unbundled loops request for review

Bell Aliant and Bell Canada have submitted a revised review and vary application to the CRTC that continues to ask for increases in its unbundled loop service rates. In a revised application for a review of telecom decision 2011-24, Bell requested that its rates be increased because its service costs have gone up. In a previous application, Bell requested that its unbundled loop rates be set according to the company’s net book values, salvage cash flows, and maintenance costs. Bell said it disagrees with the existing calculation of prospective incremental costs associated with the companies’ use of its copper cable plant to provide unbundled loop service, which small competitors can lease to run telecom services to customers' homes. In a revised application updated and submitted this month, Bell suggested that it sell its copper plant “in place at market value” so that it can “realize the plant’s net salvage value.” Bell also submitted an alternate plan, saying it would continue to use its existing copper plant to provide unbundled loop service and forego its net salvage value. But the company said the alternate plan would only reflect costs related to maintaining its existing copper network and removing the copper plant as it reaches the end of its functional life. Bell said most maintenance costs are related to the number of loops and the amount of kilometres of copper pair wiring required to satisfy demands. The telco added that eventual removal costs and technical support costs play a major role in its operational fees. Primus Telecommunications Canada Inc. has also filed an application to review the decision, arguing that Bell's original rate increases are too high. The company says Bell’s proposed unbundled loop rate increases range from 25 per cent to 156 per cent and will be charged retroactively by 13 months.

Bell revises unbundled loops request for review

Brief | May 18, 2011

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