CRTC introduces 2002 contribution rate
Canada’s telecom regulator, the CRTC, has set the interim rate for contribution charges for next year. The 2002 rate has been set at 1.4 per cent, a significant decrease over the 4.5 per cent rate applied in 2001. In addition, the commission has set the total subsidy required at $279 million, nearly three-quarters of the national pool that was supposedly needed for this year.
The decrease will more than likely be greeted with delight by all telecommunications service providers. This move will have the greatest impact on wireless companies, which saw their portion of the contribution pool increase by 1,200 per cent from 2000 to 2001.
In the decision, Order CRTC 2001-876, there was no specific mention of the impact on the wireless carriers. With a decision still pending on the amount of handset revenue that can be deducted from the total contribution payment, the amount mobile operators have to pay in will likely change. More details.

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