WSPs should fear our new subsidy rules
telecom | 12/11/2000 5:00 am EST
On November 30, the commission announced that it will replace, effective January 1, 2001, the current per-minute contribution mechanism with a revenue tax mechanism. The new regime will spread the contribution burden, currently placed solely on long distance services, over the entire telecom industry; however, in doing so, it will significantly increase the burden on wireless services. Under the new regime, all telecom service providers, with revenues greater than $10 million, will be required to pay contribution. Eligible telecom service providers, including wireless service suppliers (WSPs) and satellite service providers, will pay contribution as a set percentage of their Canadian telecom service revenues net of contribution revenues received, inter-carrier payments, terminal
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