NLIS 8
May 16, 2001
(Government Services and Lands)

Minister responds to CRTC approval of telephone rate increase

Walter Noel, minister responsible for consumer affairs, has instructed officials to provide him with complete details relating to CRTC mechanisms for approving requests for telephone rate increases to help determine what role government might play in ensuring increases are necessary and justifiable. 

On May 10, the CRTC approved a rate increase for Aliant Telecom Inc. of $2 per month for single-line residential services. The increase was effective May 15.

Mr. Noel intervened through a letter to the CRTC requesting that they review the request very carefully to ensure it was justified, pointing out that it represented a 10 per cent increase for basic telephone charges. 

"While the CRTC did state in its decision that it received comments opposing the proposed rate increase, I have not yet received a response to my letter," Noel said.

"I have been informed that this rate increase falls within the limits established by price cap indices, but I want to be assured that consumers are fully protected, and that they have adequate input in the rate setting process. Telephone, cable and other regulated industries often generate enormous profits. We have to make sure that does not happen because rates approved by the CRTC are higher than necessary."

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

2001 05 16                                            3:50 p.m.