MTS Allstream throws support behind Rogers against unfair pricing

MTS Allstream Inc. is lending its support to a Rogers Wireless application over what it claims are unfair prices for competitor services. The incumbent telephone company notes in its comments that it, too, has been subjected to retail pricing in cases where the commission has clearly ruled that only competitor prices should apply. The following is an edited excerpt of MTS Allstream’s submission to the CRTC. MTS Allstream supports the relief requested in Roger’s application. In Decision 2005-6 the Commission classified all ‘other CO connecting links’ as category 1 competitor services since the ILEC is the only carrier capable of providing these links. There are no circumstances under which an ILEC should be charging retail DNA link rates to interconnect CDN service components, or for that matter, to interconnect any other ILEC service or non-ILEC services and facilities where the ILEC is the only supplier of that link service. MTS Allstream acknowledges that in some cases it had inadvertently charged competitors for retail DNA links in certain situations similar to those raised in this application. As soon as this matter was brought to its attention MTS Allstream removed these charges from competitor invoices and has already started to process rebates for these charges back to 3 February 2005. There is no ambiguity in Decision 2005-6 with respect to the treatment of links to connect CDN service components with each other. In ILEC nomenclature the link component of the DNA service provides the central office equipment required to connect: an access to another access, an access to an intra-exchange channel, an access to a network service at the rate centre, and an intra-exchange channel to a network service at the rate centre. Network services include both retail services, such as inter-exchange service, Megalink service, channelization, as well as competitor services such as switching and aggregation. It is important to note that the DNA link service is essentially a rating element and was never designed to recover specific cost components. In Decision 2002-34 the Commission determined that the link component should be included in the interim Competitor DNA service. The Commission reiterated this determination in Decision 2005-6 and further determined that the costs for the link functionality formed part of the associated CDN access component. The Commission also recognized that other types of links referred to as ‘other CO connecting link service’ may be required between the intra-exchange, metropolitan IX and channelization components of the CDN service. Consequently, the Commission directed the ILECs to file tariffs for the other CO connecting link service’ service to the extent that this service was not already included or accounted for within the other CDN service components. As Rogers notes in its submission, only TELUS filed a tariff for the other CO connecting link service since it claimed that it had not explicitly included costs for the link service in its CDN cost studies. The remaining ILECs, Aliant, Bell Canada, MTS Allstream and SaskTel advised the Commission that a tariff for other CO connecting links was not required. In particular, MTS Allstream advised the Commission that the costs associated with the other CO connecting link was already included within the cost studies for each CDN component and therefore there was no need to file a separate tariff for the service. Rogers states that Bell Canada is charging retail DNA link rates for "stand-alone central office DS-1s", in particular, for "trunk side" and "line-side" services. As Rogers’s notes, in many cases these separate link charges often exceed the combined cost of the CDN access and link charge. MTS Allstream has a similar experience as it continues to receive invoices from the various ILECs that include retail DNA link charges associated with CDN service arrangements. Many of the DNA link charges have been identified as billing errors and have been brought to the attention of the ILECs for correction. In addition, many of the ILECs have not completed the DNA to CDN conversion process and therefore it is difficult to determine the extent to which these link charges are being erroneously billed or simply have not yet been converted. Decision 2005-6 makes it clear that the ILECs should not be charging DNA link rates in this instance. As noted at paragraphs 194 and 195 of that decision the Commission classified the other CO connecting link as an essential category 1 competitor service in all bands since the ILEC is the only provider of this service component. In addition, the Commission confirmed that a competitor may use any service included as part of CDN services in conjunction with other ILEC services or non-ILEC services and facilities. It is clear from Decision 2005-6 that Rogers’ interpretation is correct. In other words TELUS should not have been charging retail DNA link rates for "other CO connecting link" services for the 3 February 2005 and 15 September 2005 period. The ‘other CO connecting link’ is a category 1 competitor service effective 3 February 2005 and as such these links should be billed at category 1 rates in all instances effective 3 February 2005.

MTS Allstream throws support behind Rogers against unfair pricing

News | February 15, 2006

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