Minister concerned about proposed telephone rate increase

The province�s Minister of Government Services and Lands, Walter Noel, has asked the CRTC to ensure any rate increase granted Aliant Telecom is required and justified. The company has requested a $2 monthly increase for individual residential primary exchange service to take effect May 15, 2001. If granted, the increase would cost consumers in the province several million dollars a year.

The minister has today written Shirley Soehn, executive director, CRTC, asking the commission "to examine the application very thoroughly to ensure an increase is required and justified."

In his letter, Mr. Noel also expressed his uneasiness about the very short time frame associated with the request. "It appears the application was made by Aliant on April 10, 2001, for an approval by May 3, 2001, to become effective May 15, 2001. This provides less than one month for analysis of the request, and certainly does not provide sufficient time for potential intervenors to make any meaningful representation to the CRTC."

The minister is endeavouring to determine whether there will be a hearing on the request, and what opportunities may exist for intervention.

Media contact: Rick Callahan, Director of Communications, (709) 729-4860.

2001 05 01                                       12:05 p.m.