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