- 2 -As an alternative, Commission staff is proposing a simplified approach for interim rates for bothresidential and business
high speed access services as explained below. Such an approach doesnot require any determinations, even on a preliminary basis, regarding the structure of theproposed tariffs, nor does it signal any change from the principles outlined above. Instead, insta
ff’s view it relies on market forces in the retail and business high speed services markets as a
benchmark for interim rates that allow for competitive pricing in the retail and business marketwhile still allowing for recovery of costs.It should be noted that the approach identified below does not reflect a final determination by theCommission but rather, reflects an expedient approach to provide competitors access to thehigher speed and increased POI aggregation services with as minimal a delay as possible. Inparticular the issue of whether there should be a usage component, and if there is a usagecomponent how will it be calculated and imposed, will be the subject of the July hearing. Noinferences of any kind should be drawn from the fact that this interim tariff, given its shorttransitory nature, contains no separate usage component.Parties are invited to provide their views on
Commission staff’s preliminary view
on the methodto establish the interim rate approach for these services. Parties are also invited to provide theirviews on how the Commission should approach any retroactive adjustment to rates back to thedate interim rates were established.
Proposed Interim Rate Approach
Set wholesale access rates based on the company
retail access rates for thecorresponding speed options, minus $7.50 to recognize activities pertaining to retail thateither do not apply or do not apply to the same extent to wholesale (e.g. back-end Internetconnectivity, billing, help desk, advertising and sales, offset by additional costs which wouldapply only to wholesale). Where this resulting wholesale access rate is higher than the
company’s proposed wholesale access rate, set the wholesale access rate equal to thecompany’s proposed wholesale ac
No usage rate would apply.All parties may file written comments with the Commission, serving copies on all other parties,by
30 May 2011
. Comments from the ILECs and cable carriers should also identify, withsupporting rationale, the earliest date by which they could implement the interim rates under theproposal.
Note that the NoC 2011-77 proceeding is limited to residential wholesale services. The business wholesaleservices are addressed separately in the Speed Matching proceeding (file 8611-C12-201016882).
The proposed interim rate approach would apply to both residential and business services, as applicable. It relates
to the ILEC’s new matching speeds and the cable carriers’ POI aggregation.
Where a company offers lower retail rates through contracts or bundles, these would be the applicable rates.
This condition does not apply to the services provided by Bell Aliant Regional Communications, LimitedPartnership (Bell Aliant) in Ontario and Quebec and Bell Canada (collectively, the Bell companies). Unlike theother tariff filings, the Bell companies have not filed a proposed wholesale access rate that includes usage costs.