From: Kevin Smith[SMTP:kevin.smith@uleth.ca]

Reply To: kevin.smith@ULETH.CA

Sent: October 4, 2001 8:25 AM

To: procedure@crtc.gc.ca

Cc: regulatory.affairs@telus.com

Subject: RE: Proposed Increase in Cost of Telephone Service

Dear CRTC Commissioners,

I DO NOT support TELUS being given the right to raise its rates for

local service $3 per month per year to a maximum monthly rate of $35 per

month. I truely believe TELUS (and the other primary telecommunications

sevice providers) is taking advantage of their present situation to

increase profits. As it is now, I find TELUS's monthly rates plenty high

and the average Canadian citizen is financially stretched too far. I

find it interesting when I look at the TELUS financial situation:

Revenue growth over the period JUL-2000/JUN-2001 is up 18.6% over the

period JUL-1999/JUN-2000 but profits are down 93% over the same period.

If I'm not mistaken, this indicates that in the last year (since there

application for this increase), TELUS has been spending like crazy. I

ask myself why a company with a virtual monopoly would place themselves

in this situation - do you think it might be that they need to try to

justify this application. In the last year, we have been flooded with

TELUS mailings and phone calls such as "reviews of our service package".

I've always found it strange that the individual on the phone seems to

review my account and say "yep, you've got the best package". This

review TELUS could do without the phonecall. TELUS has not been

interested in managing costs in the last 12 months. If we take a step

back to years ending in 31-DEC-2000 compared to 31-DEC-1999, earnings

were up 52%. During this period, their assets doubled through acquistion

and expansion while only increasing the number of outstanding shares by

24%. A year ago, they picked up Clearnet Communications for

$4.6-billion, a move which many of us questioned. However, it's done so

we shouldn't be surprised that costs are up and profit is temporarily

down. With the recent downturn in the economy, Telus stock is definitely

taking a hit as is almost every company including those in the

Communications sector. However, there is nothing but blue sky for

profits here. If you provide TELUS with approval for this increase, you

will be padding their profit margin at the expense of average Canadians

- many already strapped to make ends meet. Then again, I am a

shareholder through my pension and mutual funds so I guess I shouldn't

complain. Actually I think I've convinced myself to go buy more stock

today. Thanks for the opportunity to respond and good luck with your

decission.

Kevin Smith, Lethbridge, Alberta