Business phone rates fall across Canada as telcos implement rate rebalancing

The move to rebalance Canada's telephone rates is officially underway, and the main beneficiaries will be business customers who for decades have paid inflated rates to subsidize the cost of residential service. The telcos and the CRTC are now working towards reducing that subsidy - albeit gradually - and to bring local rates closer in line with actual costs. Bell Canada has already had some changes approved by the CRTC, while others are still awaiting the commission's endorsement. The eastern Canadian giant has reduced prices on some of its digital data services by up to 37 per cent. It has asked the CRTC for permission to offer single-line and PBX business customers term-based discounts of up to 20 per cent. The company also wants to move to a single access platform for digital service to provide more flexibility and savings for voice and/or data service customers. The pinch will be felt by residential customers, who will see their bills go up by 35 cents per month. Customers in higher cost areas will pay between $1.55 and $2.30 more each month in order to address discrepancies between what they pay and the costs incurred by Bell. The telco asserts that these increases fall well within the range of inflation for the last few years. The firm is also dedicated to bringing single-line service to all exchanges by the end of the year as part of its Local Service Improvement Program.Telus ups local rates, but expands local calling areas Telus has introduced its changes for customers in British Columbia and Alberta. In Vancouver, business clients will see an eight per cent decline in prices, representing about $4.20 each month. Telus says the price of a single business line in the city core will be $39.80. The firm estimates the cost for business local service in the lower mainland will decline by six per cent or $2.82. Business rates in Victoria will fall by seven per cent. The company expects that 70 per cent of its business clients throughout the province will experience no change or an actual decrease in their rates. Overall, the average decrease for business lines should be one per cent or $0.43 each month. Businesses can expect a maximum decrease for a single line of $3 per month to a maximum increase of $3.90. Multiline rates will fluctuate from a decrease of $4.20 to an increase of $4.45. Residential customers will pay more, but Telus is quick to point out that local calling areas are expanding. People in Vancouver, New Westminster, Richmond and Burnaby will see rates increase by $0.25, while those in Delta, Surrey, White Rock, Langley, Maple Ridge, Pitt Meadows and the Tri-Cities region will be subjected to a $0.70 boost to reflect a wider LCA. Residents of the North Shore will be assessed an additional $1.75, most of it rate alignment with the rest of the greater Vancouver area with $0.70 being allotted for the expansion of the LCA. Customers outside of Vancouver will see increases of $1.85 to $1.95 to bring rates to between $20.65 to $26.70 per month. In Alberta, Telus is cutting business rates in Edmonton and Calgary by six per cent, resulting in savings of about $2.40 per month. The company has also proposed integrating the extended flat rate calling (EFRC) service with basic service. If approved, multiline business users will see decreases of nine per cent or up to $6 per month. Across the province, 88 per cent of business users will see a decline in charges or no change. The change for single business lines will range from $11.18 less per month to a maximum increase of $3.87 each month. Multiline users can expect reductions of up to $6, with no increases forecast. Residential customers in Alberta will see the number of different rates paid fall from 36 to eight, assuming approval is given to the EFRC changes. Increases for local service will range from $0.30 to $2 per month. In Calgary rates will jump by $0.30 to $22.80. In Edmonton, touch tone rates increase by $2 to $22.29 while rotary rates will go up by $1.75 to $19.52 per month. The cities of Fort McMurray, Grand Prairie, Lethbridge, Lloydminster, Medicine Hat, Red Deer, Sherwood Park and St. Albert will be hiked $1.20 to $23.70 each month. Rural rates will decrease by up to $4.10 or increase by up to $2.20. These customers will pay from $24.20 to $27.90 for residential service. SaskTel raises rural rates Continuing east, SaskTel has been given approval by provincial authorities to rebalance its rate structure (See chart). Business clients will see decreases of up to $3.25 to increases of $6.15 per month. Local access rates for all residential customers in the province will be pegged at $22 each month. This represents an increase of between $2.65 and $3.35, depending on the location. Service connection charges are increasing for the first time since 1992. Businesses will pay from $45, up from the current $42, if no field visit is required. They will shell out $99, an increase of seven dollars, if there is a field visit. Residential rates go from $33 to $35 when there is no field visit and jump from $62 to $75 with a visit. The Northern Radio Telephone Service in remote areas of the province will jump three dollars to $25.45, while the Exchange Radio Telephone Service, an enhanced version of NRTS, will cost businesses $47.65 and residential users $38.15. Both are three-dollar increases. MTS awaiting approval Finishing off on the prairies, Manitoba Telecom Services Inc has filed its price changes with the CRTC. Business customers who sign long term contracts could potentially save up to 11 per cent. Local service rates will range from $15.45 to $19.02, a monthly increase of roughly $0.88. Residential LD customers can pay $17.95 to receive unlimited calling every evening and each weekend. The telco calculates this is a decrease of more than 70 per cent from the LD rates of eight years ago.

Business phone rates fall across Canada as telcos implement rate rebalancing

News | April 10, 2000

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