NLIS 3
August 23, 2001
(Government Services and Lands)
 

Minister Noel to intervene in CRTC hearing on telephone rate increase

Government Services and Lands Minister Walter Noel intends to ensure telephone rates in the province do not increase unnecessarily as a result of Aliant Telecom's request to the CRTC for a regulatory change which would enable it to charge the same price for basic residential telephone service in the other Atlantic provinces as it does in Nova Scotia.

Minister Noel says: "The new proposal is not simply for a rate increase. Aliant is trying to have regulations changed to allow it to apply for a rate change based on the rates in other provinces; something it cannot do at present. It is difficult to see how changing the pricing rules to a uniform level across Atlantic Canada would help reduce costs or encourage competition. It might place corporate convenience above the needs of customers, and result in unjustifiable increases. Newfoundland and Labrador is a geographically distinct area from the Maritime region. We cannot simply accept the company's contention it would be desirable to have a uniform price level across four provinces with such widely varying conditions.

"The cost of telephone communications within cities and across rural areas is also a matter of concern. NewTel Communications has little competition outside St. John's. Increasing the basic residential cost of service will most adversely affect rural areas.

"We will be requesting that the CRTC hold public hearings in our province in order to provide better access for comment by our residents. We find it objectionable that current plans are for hearings to be conducted in Hull, Quebec only. They should be held in areas to be affected within Atlantic Canada."

Government intends to intervene and will submit a filing of written comments to the CRTC prior to the October 15 deadline.

Minister Noel sought to intervene in NewTel Communications request for a $2 a month increase last April, but was advised by the CRTC that the proposal was "within the price cap limits." Increases were approved without hearings last May. He has now requested that officials review the regulatory process for telephone and cable rates to determine whether changes may be necessary to protect the interests of consumers in Newfoundland and Labrador.

Media contact: Simon N. Lono, Communications, (709) 729-4860

2001 08 23                                                     2:45 p.m.