REGINA – SaskTel today cut its long distance rates today while also asking the CRTC for permission to raise certain local rates.
The Saskatchewan Crown corporation announced further rate changes “in light of continued competitive and regulatory pressures,” the company said today. The savings in its long distance plans include:
* A $3 reduction in its anytime North America unlimited LD plan
* A reduction from seven cents to five cents per minute outside plan hours on its evenings and weekends North America unlimited LD
* And its straight rate North America savings plan has seen a reduction from seven cents to five cents per minute.
The telco also said today it will file an application to the CRTC to increase residential local telephone service rates in high cost (rural) service areas in Saskatchewan by approximately 2% effective March 20, 2008 and by approximately 3% effective June 2, 2008.
SaskTel also said that payphone rates will increase to $0.50 for local calls paid for in cash effective June 2, 2008.
The CRTC’s Price Cap Decision, which establishes the regulatory framework under which all major incumbent telephone companies must operate, reduced the subsidy provided to high cost serving areas annually by the lesser of the rate of inflation (this year 2.14%) or 5%, which essentially forces the incumbent telephone companies to increase rates in rural and remote areas of the country, says the telco’s release.
“SaskTel’s appeal of this CRTC decision was rejected and it leaves us with little choice but to proceed with the rate increases, however, we are introducing significant long distance rate decreases that more than offset the increases,” said Robert Watson, president and CEO. “This latest round of price changes will have an overall negative impact of approximately $4 million on SaskTel’s revenues, as SaskTel remains committed to providing the highest quality of services to its customers at competitive prices.”
Effective March 20, 2008, residential local access customers in high cost serving areas will see a rate increase ranging from $0.41 to $0.67 per month and approximately a 3% increase again on June 2, 2008.
Customers in high cost serving areas will continue to receive local telephone service for rates that remain among the lowest in Canada and are below the actual cost of providing the service, according to the company. Payphone rates will rise to $0.50 for local calls paid for in cash, but retain the rate of $0.25 per call for payphone calls using a prepaid payphone pass for the immediate future.
