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

[Bob's Leaky News Service]

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.