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Contradictory rulings frustrate wireless industry; better understanding needed

News | 05/13/2002 4:00 am EDT

Two recent contradictory contribution rulings demonstrate that the various government bodies that regulate the wireless industry are still struggling to understand the full nature of how the industry operates. Last month, the CRTC reaffirmed a previous staff decision that said carriers can’t use monthly service revenue to cover the full cost of terminals for contribution purposes (RoW, April 16/02). In a separate but related decision, however, the Ontario government’s Retail Sales Tax Branch ruled that carriers can, in fact, use a portion of subscriber service revenue and attribute it to handset revenue for tax purposes.

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