Residential Services Rate Adjustments for 2008
To maintain competitive rates for Telecom products and services, the Canadian Radio-Television and Telecommunications Commission (CRTC) has established an annual process that allows service providers to file a request for rate adjustments.
On April 30, 2007, the CRTC established a new price cap regime which now applies to regulated services. In accordance to the rules of Telecom Decision CRTC 2007-27, TELUS can submit price change proposals every year.
Reason for the increase
Based on its general policy, the CRTC tries to have rates correspond to costs, but it has reaffirmed that rates for basic local services for customers located in remote rural areas are still below costs. When there is a loss to be recovered, a national contribution fund provides subsidies to offset the high costs of servicing remote rural areas. However, the government would like to see residential services be more financially self-sufficient. Therefore, it is reducing the subsidy by 3.13%. TELUS is applying a price increase based on this percentage, solely to compensate for the short-fall and maintain customer care quality.
These are the services being affected by the rate increases:
- Circuit between buildings: $3.32 to $3.65
This rate increase is in effect since June 1, 2008, in all regions.
- Local line, residential: $24 to $24.75
- Local line, fax: $24 to $24.75
- Local line for people with disabilities: $23.08 to $23.80
- Number reservation: $11,95 to $12.32
These rate increases are in effect since June 1, 2008, in some regions.
For information on this process, please view the CRTC Web site.
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