News Release
November 30, 1998
CRTC SAYS NO RATE INCREASE FOR
EDMONTON TELEPHONE SUBSCRIBERS
OTTAWA-HULL — Today, the CRTC announced that monthly residential rates for
Edmonton telephone subscribers won't change on 1 January 1999, as proposed by Telus
Communications (Edmonton) Inc. (TCEI). This decision also replaced earnings regulation
with price cap regulation, effective 1 January 1999, for a three-year period.
The Commission found that TCEI's proposed $3.00 increase was not warranted but it
recognized that some minor adjustments might be necessary to balance any revenue
shortfalls going into the three-year price cap regime. A final decision on this and other
matters is expected in February 1999.
Why price cap regulation? The Commission has adopted this method of regulation for
TCEI, because it believes it is the appropriate regulatory approach for an environment
where real competition in the local market is not yet a reality.
Price cap regulation means that residential telephone subscribers are protected from
rate increases during the price cap plan - other than increases generally tied to
inflation - and telephone companies are provided with more pricing flexibility in a
competitive market.
This price cap method of regulation conforms to the model the Commission adopted in an
earlier decision for the other major telephone companies in Canada.
Reference document: Telecom Decision CRTC 98-23
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Contact: Denis Carmel, Ottawa, K1A 0N2
Tel: (819) 997-9403, TDD: (819) 994-0423, Fax: (819) 994-0218
EMail: denis.carmel@crtc.gc.ca
Toll-free # 1-877-249-CRTC (2782)
Copies of today's decision are available through our Internet site ( http://www.crtc.gc.ca ) or by contacting the public
examination room of any CRTC office. These documents are available in alternative
format upon request.
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