PROVINCE APPEALS TO FEDERAL CABINET TO ADDRESS LOCAL TELEPHONE SERVICE DEREGULATION

The Province of Saskatchewan today asked the Federal Cabinet to immediately take action to address the continuing inequities resulting from federal telecommunications regulation and direct the Canadian Radio-television and Telecommunications Commission (CRTC) to reconsider its decision (Telecom Decision CRTC 2006-15) on the regulation of local telephone service.

"It is important that all Saskatchewan residents have access to new telecommunications technologies and services, regardless of whether they live in urban or rural areas," Minister responsible for Information Technology Andrew Thomson said. "It is our belief that SaskTel should be able to compete on a level playing field and provide these new technologies and services at prices competitive with other companies."

With the local forbearance decision, not only did the CRTC choose an artificially high market share that SaskTel must lose before it would be able to compete on an even footing, it has also included massive rural areas with urban areas in defining the relevant geographic market. The result will be that deregulation could be virtually unachievable in many parts of Saskatchewan. The impact on Saskatchewan customers will be that they will not get the benefit of market forces, which translates into fewer choices, lack of bundle options and much less price competition. Equally important is the financial impact of the decision on SaskTel and its ability to continue to invest in new services and technologies that drive growth and improve productivity.

"This government is committed to the development of a competitive and cutting edge telecommunications industry in Canada and we believe that can only occur if competition and markets are as unencumbered as possible," Minister responsible for SaskTel Deb Higgins said. "Rather than adopt a more light-handed regulatory approach, the CRTC has added further regulatory rules that will be harmful to both Saskatchewan consumers and to SaskTel, our publicly owned telecommunications company."

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Marie Trafford Media Services Regina Phone: (306) 787-0963 Cell: (306) 539-0379