Bell CanadaProposed Updates to SRB Manual 2000Attachment 1
Page 1 of 14
16 November 2000
Ms. Ursula Menke
Secretary General
Canadian Radio-television and
Telecommunications Commission
Ottawa, Ontario
K1A 0N2
Dear Ms. Menke:
Subject:Split Rate Base (SRB) Manual Update for 2000
1.Pursuant to the procedures established in Telecom Letter Decision CRTC89-26 as modified subsequently by the Commission, Bell Canada hereby provides its proposed updates for the SRB Manual for 2000.
2.A machinereadable file copy of the submission is provided to the Commission via Internet email.
Yours truly,
Attachments
c.c.:CRTC Regional Offices (Montréal, Ottawa)
Bell CanadaProposed Updates to SRB Manual 2000Attachment 1
Page 1 of 14
Section 2.1 Operating Revenues
Other Revenues
Main Account 57X
Item 2
Remove account 570.3-900 Overhead Recoveries. It is associated with Activity MXX1292 Custom Work Activity which is assigned to the Other segment. These revenues will now be assigned to the Other segment to match the related costs.
Add account 579.8-300 Overages. This account is part of the 579.8 series and should be assigned in the same manner as 579.8-100 and 579.8-200.
Item 3
It is proposed that all of the following accounts be assigned proportionately based on accounts 500.5-206 and 510.1-125 as these accounts relate to both local and long distance calls:
578.1-100 Payphone Cash Card - Publicity
578.1-102 Payphone Cash Card - Production
578.1-104 Payphone Cash Card - Collector's Items
578.1-200 Payphone Cash Card - Sales Proceeds
578.1-210 Calling Card - Hello Phone Pass - Sales Proceeds
578.1-220 Calling Card - Prepaid Wholesale - Sales Proceeds
578.1-230 Prepaid Cash Card - Promotions & Discounts (Dr)
Uncollectibles
It is proposed that all Uncollectible revenues be assigned to the segments based on the assignment of all revenues other than Uncollectibles. A composite ratio would then be developed and used to assign Uncollectible expenses. Note that total Uncollectible revenues from the 590 series of account continue to be credited to account 590.9-900 and debited to expense. Currently, under 5% of Uncollectibles is assigned directly to the segments. The proposed procedure will simplify this process.
Section 2.2 Tariff Services
See Attachment 2.
Section 2.3 Cost Revenue Matching Study
Cost/Revenue Matching Procedures
Group 1a Services
Remove the following items as the services have been cancelled:
DatarouteDedicated Access
Dataroute International
Datapac3304 & 3305
Group 1b Services
Cancel this study as all the services in this group have been cancelled.
Voicecom and Multicom have been cancelled in 1998 and 1999 respectively.
Datalink Service has been withdrawn effective 15September2000 and had $136K revenue as of 30June2000.
Group 1c Services
Cancel this study as Datapac Outdial Arrangement is the only service in this study and the revenue is currently under $5K.
Group 4 Services
Revenues in Pospac Direct Connect are now under $5K and it is proposed that this study be cancelled.
Call Messenger Services
This service was withdrawn in December 1998 and it is proposed that this study be cancelled.
Section 3.4 Station Apparatus
Remove the following field codes from the manual as they have been cancelled:
678C LPBX Station Connections - Wallboxes
53EH LPBX Embedded Investment Application Software
Section 3.5 Outside Plant
Remove the following field codes from the manual as they have been cancelled:
52C Aerial Cable - Beacon and NBI - Fibre Optic
54C Incidental Beacon and NBI Conduit
71C Poles - Beacon and NBI
74C Manholes Beacon and NBI
505C Underground Cable - Beacon and NBI - Fibre Optic
532C Building Cable - Beacon and NBI - Fibre Cable
565C Buried Cable - Beacon and NBI - Fibre Optic
702C Aerial Cable - Beacon and NBI - Coaxial
705C Underground Cable - Beacon and NBI - Coaxial
732C Building Cable - Beacon and NBI - Coaxial Cable
765C Buried Cable - Beacon and NBI - Coaxial
Section 3.6 Other Investment
Remove the following field codes from the manual as they have been cancelled:
726C GPC TPA Software Beacon
54BH General Tools and Work Equipment - Beacon and NBI
54CH Computerized Office Equipment - Beacon and NBI
Add the following field code and assignment methodology to the manual:
216C OSS - Digital - Regular Application Software
Assign this investment to the segments based on a composite ratio of central office equipment, station apparatus, station connections, large private branch exchange, and outside plant.
Section 4.1 Develop Products & Services
Remove the following Activities as it has been cancelled:
BEX-0141 Develop & Test New Products & Services - SRCI
Section 4.3 Acquire Customers
Change the following Activities to:
DDA-0361 Sell Products and Services - Public Telecom
Description: Selling Activities related to payphones. Also includes marketing to promote, distribute and sell phone cards and the cost of maintaining phone card vending machines.
Proposed Methodology: These expenses are assigned to the segments based on a salary ratio derived from organizational analysis by segment.
Comment: An analysis of the services supported by this Activity shows that there is a causal link to Payphone service. The proposed methodology will give a more causal assignment of these costs.
Remove the following Activities as they have been cancelled:
DDA-0304 Perform Marketing Services - Specialty & Prepaid Cards
DAC-0315 National Marketing & Advertising Activities - SRCI
DCA-0341 Sell Products & Services – Bell Nexxia
DDF-0368 Commissions - Credit Cards
DDF-0369 Commissions - Hotels
DDF-0371 Commissions - Other
Change the following Activities to:
DDF-0370 Telephone Commissions
Description: This activity includes commissions for coin telephone occupancy privileges and for the rented space for Hello card vending machines. Also included are commissions paid to distributors related to the sale of Payphone cash cards and Hello prepaid cards, to credit card companies related to the card phone system, to hotels on revenues originating at hotel guest rooms and to outside collection agencies and credit card agents.
Proposed Methodology: Expenses associated with Public telephone and Payphone cash card commissions are assigned to the segments based on the associated revenues by segment. The remaining expenses are assigned to the Other segment.
Comment: This Activity now includes Activities DDF-0368, DDF-0369 and DDF-0371.
Section 4.4 Fulfill Orders
Remove the following Activities as they have been cancelled:
ECH-0485 Testing & Coordinating Beacon/New Broadband Initiative
ECD-0468 Install Inside Wire Designed
Change the following Activities to:
EBB-0422 Design Circuit Layout
Description: Activities related to the preparation of circuit layout and design of such special services as FX, WATS, OPX, Centrex, Data, Video, Voice and DND, and message circuits. Also includes the preparation and issuance of the Circuit Layout Record (879), Trunk Circuit Layout Record and Trunk Work Order and interoffice assignment activities performed by engineering groups.
Proposed Methodology: These expenses are assigned to the segments based on an analysis of the circuits on the service orders related to designed circuits.
Comment: Many of the design circuits are within the local exchange area and which was not recognized by the current methodology. The proposed methodology will result in a more causal assignment of this Activity.
ECA-0431 Control and Dispatch - Design Provisioning
Description: Activities relating to the administration of installation orders for designed circuits including dispatching of orders to technicians, maintaining logs of installers location and progress, monitoring of technicians performance, compiling statistics, ordering material and preparing time reports.
Proposed Methodology: These expenses are assigned to the segments based on an analysis of the designed service orders requiring field work.
Comment: This Activity relates principally to the provision of local channel services. The proposed methodology will give a more causal assignment of these and will result in a better matching with the related costs.
ECE-0465 Install Inside Wire - Business
Description: Labour and other costs associated with the installation, connection, rearrangement and changes to business inside wiring (prenetwork interface).
Proposed Methodology: These expenses are assigned to the segments based on an analysis of the related service orders requiring premises visits.
Comment: This Activity principally relates to the provision of Centrex and work done on the access side of the demarcation point. The proposed methodology provides a more causal assignment of the costs and will result in a better matching with the related revenues.
ECE-0467 Install Equipment - Designed
Description: Labour and other costs associated with the installation, connection, rearrangement and changes to designed data equipment on customer premises.
Proposed Methodology: These expenses are assigned to the segments based on an analysis of the data network access service orders requiring field work.
Comment: An analysis of the services supported by this Activity shows a causal link to the provision of digital network access services. The proposed methodology provides a more causal assignment of the costs and will result in a better matching with the related revenues.
ECD-0468 Install Inside Wire - Designed
Description: Labour and other costs associated with the installation, connection, rearrangement and changes to designed inside wiring (pre-network interface).
Proposed Methodology: These expenses are assigned to the segments based on an analysis of the data network access service orders requiring field work.
Comment: An analysis of the services supported by this Activity shows a causal link to the provision of digital network access services. The proposed methodology provides a more causal assignment of the costs and will result in a better matching with the related revenues.
ECF-0471 Perform Engineering Services - Customer Equipment
Description: This Activity includes the pay and other expenses of Station Engineering employees. Also includes project coordination and customer system support for Carrier Services Group (CSG) customers.
Proposed Methodology: Costs related to CSG work is assigned based on an analysis of the related service orders. The remaining costs are assigned directly to the Other segment.
Comment: The current methodology did not reflect the fact that some of these costs relate to the provision of services by the CSG to CLECs. The proposed methodology is more causal and will result in a better matching of the costs with the related revenues.
Section 4.5 Service Assurance
Remove the following Activities as it has been cancelled:
FCX-0594 Network Management (Field Services) Broadband
Change the following Activities to:
FBH-0575 Repair Inside Wire - Business
Description: The labour and materials associated with the repair and maintenance of single line CPE business inside wiring and jacks including those which are covered under the BellCanada warranty. The repair of business station connections inside wiring access arrangements from the Outside Plant terminal or protector to the network interface.
Proposed Methodology: These costs are assigned to the segments based on an analysis of the business trouble tickets with an inside wire disposition code.
Comment: The current methodology did not recognize the costs related to work between the Outside Plant terminal or protector and the network interface point. The proposed methodology will result in a more causal assignment of these costs.
FBH-0578 Repair Inside Wire - Designed
Description: The repair of designed circuit station connections inside wiring access arrangements from the Outside Plant terminal or protector to the network interface.
Proposed Methodology: These costs are assigned to the segments based on an analysis of the work activities by segment.
Comment: The current methodology did not recognize the costs related to work between the Outside Plant terminal or protector and the network interface point. The proposed methodology will result in a more causal assignment of these costs.
FBJ-0585 Repair Terminal Equipment - Shop Repair
Description: Labour and other work associated with terminal equipment that requires shop repair, including coin sets.
Proposed Methodology: These costs are assigned to the segments based on an analysis of the work activities by segment.
Comment: A portion of this Activity relates to the repair of Payphones. The proposed methodology will recognize this and result in a more causal assignment methodology.
Section 4.6 Operator Services
Remove the following Activities as they have been cancelled:
GAX-0602 Provide Information - NPA 555
GEX-0613 Provide Attendant Service – 9-1-1 Neutral Answer
Add the following Activities:
GBX-0606 - Provide Connection Services – 9-1-1 Neutral Answer
Description: This Activity relates to providing operator assistance for 9-1-1 Neutral Answer calls. This Activity includes a portion of District Office support activities for secretarial, planning and control of this Activity.
Proposed Methodology: These expenses are assigned directly to the Other segment.
Comment: This Activity replaces GEX-0613 which has been cancelled.
GEX-0616 - Operator Services Planning
Description: This Activity relates to providing Operator services planning activities.
Proposed Methodology: These expenses are assigned to the segments based on a ratio of salaries associated with all Activities in Operator services by segment.
Section 4.8 Management and Support
Remove the following Activity as it has been cancelled:
KEX-0944 SRCI Management & Support Activities
Section 4.9 Other Costs
Remove the following Activities as they have been cancelled:
MXX-1232 NonActivity Related Adjustments
MXX-1233 Amortization - Business Transformation Costs
MXX-1251 Recast - Other Expenses
MXX-1252 Credit Reallocation to COGS Settlement
Add the following new Activity:
MXX-1204 Pension Credits
Description: This Activity includes the credits associated with pension payments.
Proposed Methodology: These expenses are assigned to the segments based on a ratio of salaries associated with all Activities by segment.
Section 4.10 Miscellaneous
Remove the following Activity as it has been cancelled:
XX-1401 IS/IT Modernization
Section 5.3 (c) Plant Under Construction
The SAP system no longer records plant under construction (PUC) investment by field code. Therefore it is proposed that the PUC investment be assigned to the segments as follows:
1)Obtain from company records plant added by field code;
2)Assign plant added by field code to the segments using the same ratios as are used to assign plant in service by field code;
3)Sum the assigned plant added by segment;
4)Develop a ratio of plant added by segment; and
5)Assign total PUC investment to the segments using the ratio obtained in 4) above.
Section 5.3 (d) Materials and Supplies
Add the following account and proposed assignment methodology:
1220620Materials and Supplies (Adjustment)Telephone Plant, Ex. Land & Bldgs
Section 5.3 (e) Investments
Remove the following accounts as they have been closed:
1801030Investment - LPB Poles
1801120Investment - J.A. Provost Inc.
1801215Investment - Fiberco US
1801270Investment - ActiMedia Services
Add the following accounts and proposed assignment methodologies:
1801040Investment - Bell Sygma Inc.Direct to Other
1801170Investment - AliantDirect to Other
1811145Investment - EntourageDirect to Other
1811146Investment - ExcelDirect to Other
1819999 Investment - HoldcoDirect to Other
Section (f) Working Capital
Remove the following accounts as they have been closed:
1002220Cash A/P Check Discount
1161030Other A/R - LPB Poles
1161100Other A/R - New North Media Inc.
1161120Other A/R - J.A. Provost Inc.
1161151Other A/R - BCE Nexxia Corp (US)
1161270Other A/R - ActiMedia Services
1161330Other A/R - TD Services
1172030Other A/R - National Mobile Radio Communications Inc.
1172100Other A/R - Télébec ltée
1172110Other A/R - Northwestel (NWTel)
1172180Other A/R - Northern Telephone
1172260Other A/R - TD Services
1184203Billing Agent - Amex
1185250LD Gift Certificates and Téléboutiques/Phonecentres
1185450Miscellaneous
1306100Other Prepaid - Subsidiaries
1306150Other Prepaid - Connexim
2180030Consortium Payable - Sygma, Télébec, Québec-Téléphone
2181003A/P - LPB Poles
2181011A/P - Expertech Network Installations
2181014A/P - New North Media
2181016A/P - J.A. Provost Inc.
2181156A/P - BCE Nexxia (GST)
2181157A/P - BCE Nexxia (QST)
2181158A/P - BCE Nexxia (OST)
2181159A/P - BCE Nexxia - Other Taxes
2181270A/P - ActiMedia Services
2182007A/P - Bell Mobility Cellular Inc.
2182008A/P - National Mobile Radio Communications Inc.
2182011A/P - Bell Mobility Paging
2182020A/P - Consortium Payable - Sygma, Télébec, Québec-Téléphone
2182024A/P - Télébec ltée
2182025A/P - Northwestel (NWTel)
2413000Family Rewards Program
2421000Extended Warranty Program (EWP)
2462000Nortel Holdbacks
Add the following accounts and proposed assignment methodologies:
1000001Corporate Cash - CanadianNet Plant Minus Deferred Taxes
1001001Corporate Cash - USNet Plant Minus Deferred Taxes
1001510Cash A/R - ReceiptsNet Plant Minus Deferred Taxes
1002010Cash A/P - Disbursements - Bank AcctNet Plant Minus Deferred Taxes
1003000Cash A/P - Disbursements - Downloads
From Bank AccountNet Plant Minus Deferred Taxes
1161040Other A/R - Bell Sygma Inc.Direct to Other
1161071Other A/R - Expertech Network
Materials OnlyDirect to Other
1161170Other A/R - AliantDirect to Other
1161261Other A/R - BDI Materials OnlyDirect to Other
1161285Other A/R - Bell MobilityDirect to Other
1161290Other A/R - National Mobile Radio
Communications Inc.Direct to Other
1171080Other A/R - Other Related - CTVDirect to Other
1171145Other A/R - Other Related - EntourageDirect to Other
1171146Other A/R - Other Related ExcelDirect to Other
1171151Other A/R - Other Related BCE Nexxia (US)Direct to Other
1171210Other A/R - Other Related FiberCo USDirect to Other
1172252Other A/R - Other Related IntrignaDirect to Other
1181230Other A/R - Competitive Local Exchange
CarrierOperating Revenues
1181300Account Receivables - Customers - Concert
ServicesOperating Revenues
1189920Customer Dishonoured Credit Card
Payments - Clearing AccountOperating Revenues
1203150Other Accounts Receivable - Contracted
Partners - Profac/NexacorOperating Revenues
1261400Prebilling for Joint Partner Contracts -
Partner's ShareOperating Revenues
1308000Prepayments - Related CompaniesNet Plant Minus Deferred Taxes
1308110Prepayments - Related Companies CGINet Plant Minus Deferred Taxes
1308115Prepayments - Related Companies
CGI (BM)Net Plant Minus Deferred Taxes
1308950Prepayments - NexacorNet Plant Minus Deferred Taxes
131XXXXPrepayments - Settlement ActivitiesDirect to Other
(Includes all accounts from 1311000 to 1319999)
1703000Other Long Term ReceivablesNet Plant Minus Deferred Taxes
2110000Matured Interest DebenturesNet Plant Minus Deferred Taxes
2111000Interest Accrued Subordinated DebenturesNet Plant Minus Deferred Taxes
2112000Interest Accrued Capital LeasesNet Plant Minus Deferred Taxes
2180040A/P - Trade - Profac/NexacorNet Plant Minus Deferred Taxes
2181170A/P - Subsidiaries - AliantNet Plant Minus Deferred Taxes
2181191BCE Mobile Integrated BillingNet Plant Minus Deferred Taxes
2181192BCE Mobile Integrated Billing
(Chargebacks)Net Plant Minus Deferred Taxes
2182030A/P - Other Related - CGI Group -
Mobility Markup PaymentsNet Plant Minus Deferred Taxes
2182080A/P - Other Related - CTVNet Plant Minus Deferred Taxes
2182145A/P - Other Related - EntourageNet Plant Minus Deferred Taxes
2182146A/P - Other Related - ExcelNet Plant Minus Deferred Taxes
2182151A/P - Other Related - BCE Nexxia (US)Net Plant Minus Deferred Taxes
2182210A/P - Other Related - FiberCo USNet Plant Minus Deferred Taxes
2182235A/P - Other Related - TeleglobeNet Plant Minus Deferred Taxes
2182252A/P - Other Related - IntrignaNet Plant Minus Deferred Taxes
2183000A/P - Controllers Manual Chargeback
ProcessNet Plant Minus Deferred Taxes
2254100Sales Incentive - Supplier SponsoredSalary and Wage Ratio
2254300Accrued Payables - Executives Compensation
- Special Compensation PlanCommon
2254350Accrued Payables - Executives Compensation
- AIPCommon