[Asterisk-Users] Look What 911 Will Cost in Canada

[John Novack]

Where is the problem?
Does one expect this service to be provided for free?
1600 bucks to set up a VOIP provider, and 2K per month sounds reasonable

John Novack


Bob's Leaky News Service wrote:

>Check out the proposed prices when this is approved.
>
>
>
>BELL CANADA REPORT
>
>
>ON THE
>
>
>ECONOMIC EVALUATION
>
>
>FOR
>
>
>THE TARIFF REVISION
>
>
>OF
>
>
>Bell Canada's Access Services Tariff Item 315 – Zero-Dialed
>
>Emergency Call Routing Service (0-ECRS)
>
>
>
>*2 March 2006
>
>
>
>
>TABLE OF CONTENTS
>
>	Page
>
>1.0	GENERAL	3
>1.1	Purpose of the Study	3
>2.0	SERVICE DESCRIPTION	3
>2.1	Service Characteristics	3
>2.2	Service Benefits	3
>2.3	Marketing Considerations	3
>3.0	TARIFF CONSIDERATIONS	4
>3.1	Tariff Components	4
>3.2	Rate Determination Principles	4
>3.3	Proposed Service Commencement Date	4
>4.0	IMPUTATION TEST	4
>5.0	DEMAND AND REVENUE INFORMATION	5
>5.1	Forecast Assumptions and Methodology	5
>5.2	Number of Customers	5
>5.3	Number of 0-ECRS Calls	5
>5.4	Bell Canada Average 0-ECRS Call Duration	5
>5.5	Estimates of Demand Quantities	5
>6.0	PHASE II COSTS	6
>6.1	Study Assumptions	6
>6.2	Study Period	7
>6.3	Financial Parameters and Tax Rates	7
>6.4	Cost Inclusions	7
>6.4.1	Expenses Causal to the Service	7
>6.4.2	Capital Causal to the Service	8
>6.4.3	Capital Causal to Demand	8
>6.4.4	Expenses Causal to Demand	8
>6.4.5	Phase II Cost Summary	9
>7.0	3RD PARTY ACQUISITION COSTS AND COSTS OF UNDERLYING CATEGORY I
>COMPETITOR SERVICE COMPONENTS	9
>
>
>
>1.0	GENERAL
>
>1.1	Purpose of the Study
>
>1.	The purpose of this study is to support the following revisions to
>Bell Canada's (the Company's) Access Service Tariff 7516 (AST) Item
>315 – 0-ECRS (Emergency Call Routing Service).
>
>Telecom Decision CRTC 2006-5: VoIP 9-1-1 call routing directs Bell Canada to:
>
>-  make 0-ECRS available to Voice over Internet Protocol Service
>Providers (VoIPSPs) who register as resellers with the CRTC.
>
>-  offer 0-ECRS to VoIPSPs who are registered as resellers with the
>CRTC at the same rate it is offered to other eligible parties -
>Wireless Service Providers (WSPs), Canadian Pay Telephone Service
>Providers (CPTSPs), Alternate Operator Service Providers (AOSPs),
>Competitive Local Exchange Carriers (CLECs) and Interexchange Carriers
>(IXCs).
>
>-  provide the Call Routing Lists and Traffic Operator Position
>Records (TOPR) lists that are currently provided to traditional 0-ECRS
>customers.
>
>
>2.0	SERVICE DESCRIPTION
>
>2.	The revision to the 0-ECRS Service is to allow VoIPSPs who are
>registered as resellers with the CRTC to access Bell Canada's 0-ECRS. 
>Using 0-ECRS, VoIPSPs will be able to route fixed non native and
>nomadic 9-1-1 VoIP calls to Primary 9-1-1 Public Safety Answering
>Points (PSAPs).
>
>2.1	Service Characteristics
>
>3.	Bell Canada will provide VoIPSPs with a Call Routing List, a TOPR
>list and an authorization PIN number under the terms of 0-ECRS. 
>VoIPSPs will be responsible for providing a call answer centre to
>perform location determination of a 9-1-1 VoIP caller.  The VoIPSP
>call answer centre will then use the Call Routing List or TOPR list to
>automatically route the call to a Primary Public Safety Answering
>Point (PSAP) without Bell Canada Operator assistance.
>
>2.2	Service Benefits
>
>4.	The revision to the 0-ECRS will enable VoIPSPs to provide basic
>9-1-1 service in Bell Canada territories.
>
>2.3	Marketing Considerations
>
>5.	Potential customers are currently WSPs, CPTSPs AOSPs, CLECs and
>IXCs.  New target customers are VoIPSPs that are registered as local
>resellers with the CRTC.
>
>
>3.0	TARIFF CONSIDERATIONS
>
>3.1	Tariff Components
>
>6.	The following rates and charges apply to 0-ECRS:
>
>Tariff Components 			Monthly Rate		Service Charge
>
>Set-up Charge, per customer	N/A	$1,658.09
>Access Charge, per customer	$2011.15	N/A
>
>7.	This service is provided initially to the customer under a two-year
>contract under the terms and conditions of which are specified in the
>0-ECRS agreement and is renewed on a successive one-year term basis.
>
>3.2	Rate Determination Principles
>
>8.	The proposed tariff rate(s) for 0-ECRS is based on Phase II costs
>plus a 15% mark-up as per the Commission's determinations at paragraph
>231 of Regulatory framework for second Price Cap, Telecom Decision
>CRTC 2002-34, 30 May 2002, for Category I competitor services.
>
>3.3	Proposed Service Commencement Date
>	
>9.	The Company is proposing to introduce Access Service Tariff 7516
>(AST) Item 315 –0 ECRS to VoIPSP's on 1 May 2006.
>	
>	
>4.0	IMPUTATION TEST
>
>10.	The imputation test associated with 0-ECRS has been met in
>accordance with the imputation test methodology as set out in the
>November 1998 Commission letter which was subsequently amended by
>Issues related to imputation test methodology - Rebanding decision
>follow-up, Decision CRTC 2001-737, 29 November 2001, and Review of
>price floor safeguards for retail tariffed services and related
>issues, Telecom Decision CRTC 2005-27, 29 April 2005 (Decision
>2005-27), and other relevant decisions or orders.
>
>11.	Tables 1 and 2 in the Appendix of this Economic Evaluation provide
>the results of the imputation test for 0-ECRS.  Table 1 provides the
>total present worth (PW) of revenues and costs over the study period
>and Table 2 provides the monthly revenues and costs per 0-ECRS
>customer.
>
>
>5.0	DEMAND AND REVENUE INFORMATION
>
>5.1	Forecast Assumptions and Methodology
>
>5.2	Number of Customers
>	
>	12.	The number of Access Independent VoIPSPs was estimated to be 	#
>possible VoIPSP customers.  Cable companies were excluded from this
>estimate since they are classified as fixed VoIPSPs and do not require
>the 0-ECRS solution.  It is assumed that 		# of the VoIPSPs have call
>centres, which translates into 	# potential VoIPSP customers.
>	
>	13.	There are 	# known AOSPs.  It is anticipated that 	# of the 	#
>VoIPSPs will utilize these AOSPs as third party call centres, which
>translates into 	# VoIPSP 0-ECRS customers.
>	
>	14.	There are also 	# ILECs that will purchase the tariff to enable
>the national VoIP 9 1 1 routing.
>	
>	15.	Total customer demand is therefore, 	# VoIPSPs plus 	# AOSPs plus
>	# ILECs for a total of 	# 0-ECRS customers.
>	
>5.3	Number of 0-ECRS Calls
>	
>	16.	Wireline 9-1-1 statistics indicate that on average there will be
>	# VoIP 9-1-1 call per month from 	# out of every 	# VoIP end-users in
>Ontario and Québec.  This factor is applied to the VoIP end-user
>demand to determine the number of monthly VoIP 9-1-1 calls per
>customer.  The VoIP end-user demand forecast is based on a Cambridge
>market study purchased by the Company.
>	
>	17.	These calls are incremental to the base existing 0-ECRS Call Volume.
>	
>5.4	Bell Canada Average 0-ECRS Call Duration
>	
>	18.	The average 0-ECRS call duration of 	# minutes is based on the
>average wireline 9 1 1 call duration.
>	
>5.5	Estimates of Demand Quantities
>	
>19.	The estimated annual demand quantities of customers and Category I
>Competitor Service components are provided in Table 3 in the appendix
>of this Economic Evaluation.  These demand estimates were used to
>develop revenues and costs of 0-ECRS.
>
>
>
>
>
>
>
>
>
># Filed in confidence with the CRTC.*************
>6.0	PHASE II COSTS
>	
>20.	The Phase II costs are determined in accordance with the Phase II
>costing principles set out in Inquiry into Telecommunications
>Carriers' Costing and Accounting Procedures – Phase II: Information
>Requirements for New Service Tariffs Filings, Telecom Decision CRTC
>79-16, 28 August 1979 (Decision 79-16), excluding cross-effects as per
>Decision 94-19, and as amended by subsequent Commission decisions.
>
>6.1	Study Assumptions
>
>21.	All results are in 2006 dollars.
>
>22.	Table 4 in the Appendix of this Economic Evaluation provides the
>vintages of unit costs used in the study and the capital increase
>factors (CIFs), expense increase factors (EIFs), and productivity
>improvement factors (PIFs) used to restate the unit costs from the
>respective vintage to 2006 dollars.
>
>23.	The working fill factors used to develop the capital costs are
>provided in Table 4a in the Appendix of this Economic Evaluation.
>
>24.	The Capital Cost Factors (CCF) used to develop the Phase II costs
>associated with support structures, inter-office fibre cables, power,
>and adjunct network are provided in Table 4b in the Appendix of this
>Economic Evaluation.  The CCF's were filed with the Commission on 24
>September 2004 and were effective as of the same date.
>
>25.	The life estimates used in the study were filed with the
>Commission on 10 February 2006 and were effective as of the same date.
> These life estimates are consistent with those approved by the
>Commission in Implementation of Price Cap Regulation and Related
>Issues, Telecom Decision CRTC 98-2, 5 March 1998.
>
>26.	Since 0-ECRS is a Category I Competitor Service which is subject
>to the (I-X) factor, CIFs, EIFs and PIFs were not applied within the
>study period in accordance with the Commission's letter dated 14 July
>2003 re: Follow-up to 18 June 2003 letter concerning Phase II costing
>information requirements.
>
>27.	The underlying Category I competitor services were included at
>Phase II costs in accordance with the Commission's letter dated 7
>October 2005 re: Modifications to the General Tariff Economic Study
>Report Guidelines.
>
>	28.	Installed First Costs (IFC) per 0-ECRS dedicated T1s were used to
>calculate the 9-1-1 Tandem capital cost of the 0-ECRS service.
>
>29.	The number of 0-ECRS 9-1-1 calls is estimated at 	# call during
>the peak hour.  CPU costs for this volume of calls are negligible and
>thus are excluded from the study.
>
>6.2	Study Period
>	
>	30.	The study period is from 1 May 2006 to 31 December 2008.
>	
>6.3	Financial Parameters and Tax Rates
>	
>31.	The financial parameters and tax rates used in the study are
>provided in Table 5 in the Appendix of this Economic Evaluation. 
>These parameters and tax rates were filed with the Commission on 10
>February 2006, and were effective as of the same date.
>	
>6.4	Cost Inclusions
>	
>32.	Detailed descriptions of the cost inclusions in each category are
>provided in the sections below.
>
>6.4.1	Expenses Causal to the Service
>
>33.	The expenses causal to the service are based on explicit cost
>estimates.  Cost inclusions by expense category are provided below:
>
>-	Advertising and Promotion
>	
>There are no advertising and Promotion expenses causal to the service.
>	
>-	Billing-related
>	
>There are no billing-related expenses causal to the service.
>	
>-	Portfolio
>
>This category includes portfolio costs associated with the expenses
>causal to the service and the expenses included in the Present Worth
>of Annualized Cost (PWAC) of capital causal to the service.  The
>portfolio expenses were estimated through the application of a
>portfolio loading of 3.6% on all expense cash flows causal to the
>service.
>	
>-	Other
>	
>This expense category includes costs associated with the Carrier
>Services Group, project management, training and other operational
>activities.
>
>
>
>
>
>
># Filed in confidence with the CRTC.
>
>
>6.4.2	Capital Causal to the Service
>
>34.	The capital causal to the service has been developed using
>explicit cost estimates.  Cost inclusions by capital cost category are
>provided below:
>
>-	Hardware
>
>There is no hardware-related capital expenditure causal to the service.
>
>-	Software
>
>This capital expenditure category includes the software development
>costs associated with modifying the billing and ordering system, IS/IT
>project management, translation and programming in the switches
>required for routing, development and testing activities related to
>the implementation of the solution.
>
>6.4.3	Capital Causal to Demand
>
>35.	Capital causal to demand includes costs associated with equipment
>and facilities required to provision the 0-ECRS.  The capital costs
>causal to demand for 9-1-1 Tandem are reported under Switching
>Equipment.  The capital costs causal to demand reported under Other
>are for the Virtual Facilities Group.
>
>6.4.4	Expenses Causal to Demand
>
>36.	Expenses causal to demand include one-time and ongoing costs
>associated with maintenance, service provisioning, advertising, sales
>management and billing, and other operational activities.
>
>37.	Cost inclusions by expense cost category are as follows:
>
>-	Maintenance
>
>Expenses associated with the Call Routing Lists and TOPR lists.
>
>-	Service Provisioning
>
>One-time cost associated with order processing and order fulfilment
>activities and administrative support performed by the business
>office, and the cost associated with issuing of the Ontario and Québec
>specific Call Routing Lists and TOPR lists.
>
>-	Advertising & Sales Management
>
>There are no advertising and sales management expenses causal to demand.
>
>-	Billing
>
>The billing-related expenses causal to demand are negligible and thus
>are assumed to be zero for the purpose of the study.
>
>-	Portfolio
>
>This category includes portfolio costs associated with the expenses
>causal to demand and the expenses included in the Present Worth of
>Annualized Cost (PWAC) of capital causal to demand.  The portfolio
>expenses were estimated through the application of a portfolio loading
>of 3.6% on all expense cash flows causal to demand.
>
>-	Other
>
>Other includes variable common costs.
>
>6.4.5	Phase II Cost Summary
>
>38.	The Detailed Summary of Phase II Costs for 0-ECRS and Costs Causal
>to the Service are provided in Tables 6 and 7 in the Appendix of this
>Economic Evaluation.  These tables report the Phase II costs excluding
>acquisition costs and excluding costs associated with the underlying
>Category I competitor services.
>
>
>7.0	3RD PARTY ACQUISITION COSTS AND COSTS OF UNDERLYING CATEGORY I
>COMPETITOR SERVICE COMPONENTS
>	
>39.	There is no 3rd party service cost associated with 0-ECRS.
>
>40.	Category I competitor service components include Floor Space
>Physical Co-Location Arrangement and Power Consumption.
>
>41.	The cost of AST Item 110, Floor Space Physical Co-Location
>Arrangement and Power Consumption was estimated by the Phase II costs
>associated with land, building and power in accordance with the
>Commission staff's letter dated 7 October 2005 re: Modifications to
>the General Tariff Economic Study Report Guidelines.
>
>42.	The PWACs associated with the major Category I competitor service
>components are provided in Table 8 in the Appendix of this Economic
>Evaluation.
>_______________________________________________
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