Using a pay phone may cost you doubleSTEVEN CHASE
OTTAWA -- The cost of using a pay phone could double for many Canadians after a decision by federal regulators yesterday that further deregulates telecommunications services across this country.
Rural telephone users will also see basic phone service rates rise after a ruling by the Canadian Radio-television and Telecommunications Commission that gives most providers more flexibility in pricing.
The maximum price for a cash call at payphones will rise to 50 cents -- from 25 cents in many parts of Canada -- and will now be $1 for non-cash calls where it was previously half that amount.
The announcement affects companies serving more than 90 per cent of Canada's phone market including Bell Canada, Telus, SaskTel, MTS Allstream and Bell Aliant.
Bell hasn't raised its pay phone rates since 1981, the CRTC said, but Telus boosted prices nearly a decade ago to 35 cents in parts of Alberta.
While pay phones might seem outdated to a generation of consumers raised on cellular phones, tens of thousands of them are still in operation in movie theatres, hospitals, schools and airports and other public, or semi-public, venues.
In 2005, Canada's five biggest phone companies still operated 147,884 pay phones, although this figure has likely declined since then.
The rule changes, which take effect June 1, will spare urban customers from any basic local phone service rate hikes.
But rural customers living in sparsely populated areas, who are often charged prices below the cost of serving them, will start seeing their charge of basic phone service increasing.
"The commission's policy is to move rates closer to actual costs as long as prices remain just and reasonable," the CRTC said.
The new price cap regime will allow big telephone companies to raise rates annually in these areas by whichever is lower: 5 per cent or the annual rate of inflation.
The CTRC said it's giving big telephone companies the flexibility to charge different rates for residential services.
For instance, it will no longer impose a limit on the prices that firms charge for optional local services. "This third-generation price cap regime provides greater pricing flexibility for large telephone companies, while providing a ceiling for prices to individual consumers," said Richard French, CRTC vice-chairman of telecommunications.
Bell Canada cheered the commission's decisions, saying it reflects the Harper government's intention to deregulate telecommunications.
"[The] price caps decision is a clear sign that the CRTC has taken to heart the policy direction set out by the government last December," said Mirko Bibic, chief of regulatory affairs at Bell Canada.
Consumer advocates panned the CRTC moves, accusing the commission of abandoning Canadian phone consumers including the "most vulnerable" who depend on pay phones.
"The CRTC will now permit phone companies to charge whatever they like for 'optional services' but don't be misled, this means useful services most Canadians take for granted, such as call display and voice mail," Michael Janigan, executive director of the Public Interest Advocacy Centre said.
http://www.theglobeandmail.com/servlet/story/LAC.20070501.RPAYPHONE01/TPStory/Business
Author