OTTAWA and GATINEAU, April 30 /CNW Telbec/ - In a decision issued today,
the Canadian Radio-television and Telecommunications Commission (CRTC)
established new pricing rules to govern the rates charged by large telephone
companies for local telephone services. These rules, which are known
collectively as the price cap regime, will come into effect on June 1, 2007,
and apply to the following companies: Bell Canada, TELUS, SaskTel, MTS
Allstream and Bell Aliant.
"This third-generation price cap regime provides greater pricing
flexibility for large telephone companies, while providing a ceiling for
prices to individual consumers," said Richard French, the CRTC's Vice-Chairman
of Telecommunications. "Where current prices are below cost, the ceiling can
be adjusted by 5 per cent per annum or the rate of inflation, whichever is
The price cap regime is designed to ensure that residential consumers in
regulated markets continue to have access to just and reasonable rates, and
includes incentives for telephone companies to operate more efficiently and to
offer more innovative services. The price cap regime was last reviewed in
- Residential customers in urban areas will not see a rate increase for
basic local telephone service.
- Residential customers in rural areas, where it is more expensive to
provide basic local telephone service, have generally paid rates at
below cost. The Commission's policy is to move rates closer to actual
costs as long as prices remain just and reasonable. The new price cap
regime allows large telephone companies to raise prices in these areas
by the lesser of the annual rate of inflation or 5 per cent.
- Large telephone companies have been granted the flexibility to charge
different rates to different customers for residential telephone
services, including optional local services.
- The Commission will no longer impose a limit to the rates that the
large telephone companies may charge for optional local services.
- The Commission has approved a request to increase pay telephone rates
up to a maximum of $0.50 per cash call, and up to a maximum of $1.00
per non-cash call. This represents the first price increase for pay
telephones in many years. For instance, Bell Canada has not raised its
pay telephone rates since 1981.
The CRTC is an independent, public authority that regulates and
supervises broadcasting and telecommunications in Canada.
Telecom Decision CRTC 2007-27, Price cap framework for large incumbent
local exchange carriers
Telecom Public Notice CRTC 2006-5
Telecom Decision CRTC 2002-43
Telecom Decision CRTC 2002-34
For further information:
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Toll-free # 1-877-909-2782; On-line services
http://support.crtc.gc.ca/crtcsubmissionmu/forms/main.aspx?lang=e; Copies of
today's documents are available through our Internet site
(http://www.crtc.gc.ca) or by contacting the documentation centre of any CRTC
office. These documents are available in alternative format upon request