Order Varying Telecom Decision CRTC 94-19 (SI/94-143)

Whereas, on September 16, 1994, the Canadian Radio-television and Telecommunications Commission rendered Decision CRTC 94-19 entitled “Review of Regulatory Framework”, in which the Commission, in one portion, directed AGT and other Stentor companies to file rate rebalancing proposals in the form of tariff applications consisting of local rate increases of $2 per month and related long distance rate reductions, to take effect on January 1 in each of the years 1995, 1996 and 1997;

Whereas, in a letter dated November 1, 1994, the Commission decided that Decision CRTC 94-19 will apply to Manitoba Telephone System;

Whereas, subsequent to the rendering of Decision CRTC 94-19, the Governor in Council received petitions filed under subsection 12(1) of the Telecommunications Act requesting that a portion of the said Decision be rescinded or referred back to the Commission for reconsideration;

Whereas the Commission issued, on November 1, 1994, Public Notice CRTC 94-52 entitled “Implementation of Regulatory Framework — Split Rate Base, 1995 Contribution Charges, Broadband Initiatives and Related Matters” and on December 7, 1994, Public Notice CRTC 94-56 entitled “Implementation of Regulatory Framework — Stentor Broadband Initiative and Canada/US Cost Comparisons”, which are intended to lead to the implementation of many of the elements raised in Telecom Decision CRTC 94-19;

Whereas the Governor in Council is satisfied that the rate rebalancing proposals providing for local rate increases of $2 per month and related long distance reductions, to take effect on January 1, 1995, 1996 and 1997, should be reconsidered by the Commission in the context of the proceedings announced in Telecom Public Notices CRTC 94-52 and 94-56;

Whereas the Governor in Council is satisfied that the reconsideration of the rate rebalancing proposals to take effect on January 1, 1995, 1996 and 1997 will contribute to the attainment of the objectives of the Canadian telecommunications policy set out in section 7 of the Telecommunications Act, and in particular paragraphs 7(a), (b), (c), (e), (f), (g) and (h);

Therefore, His Excellency the Governor General in Council, on the recommendation of the Minister of Industry, Science and Technology, pursuant to section 12 of the Telecommunications Act, hereby

• (a) refers that portion of Decision CRTC 94-19 that relates to a plan whereby AGT, the Stentor companies and Manitoba Telephone System are directed to file rate rebalancing proposals in the form of tariff applications consisting of local rate increases of $2 per month and related long distance rate reductions, to take effect on January 1 in each of the years 1995, 1996 and 1997, back to the Commission for reconsideration;

• (b) varies Decision CRTC 94-19 to provide that the execution of the said plan directing the filing of rate rebalancing proposals in the form of tariff applications consisting of local rate increases of $2 per month and related long distance rate reductions, to take effect January 1, 1995, is stayed pending the results of the Commission’s reconsideration of the said portion of Decision CRTC 94-19;

• (c) considers that it is material to the reconsideration of the portion of Decision CRTC 94-19 referred to in paragraph (a) that the Commission compare the Phase III cost allocations with external benchmarks; and

• (d) specifies that the reconsideration of the portion of Decision CRTC 94-19 referred to in paragraph (a) shall be completed no later than October 31, 1995.