FRAMEWORK FOR LOCAL TELEPHONE COMPETITION IN SASKATCHEWAN COMPLETE

Released on August 28, 1998

Following consultations with a wide range of interested parties and in

accordance with Saskatchewan's agreement to harmonize its

telecommunications policies with those of the Federal government,

Intergovernmental and Aboriginal Affairs Minister Berny Wiens today

announced the next stage for local telephone competition. This stage

will enable local telephone competitors to build their own local

telephone networks in Saskatchewan. Today's decision builds on the

April 1, 1998 announcement allowing SaskTel's local services to be

resold by alternative local service providers.



"This latest regulatory change makes Saskatchewan a fully competitive

telecommunications market," Wiens said. "The introduction of local

competition aligns Saskatchewan's telecommunications policy with the

CRTC's in a manner that is sensitive to the unique circumstances of

Saskatchewan. The move to a fully competitive market also reinforces

the need for the CRTC to establish a national Universal Service Fund

to ensure affordable, quality service for all Saskatchewan residents."



In order to ensure fair competition, Saskatchewan has directed SaskTel

to make its network and services available to new local service

providers. Local competitors will not, however, have access to the

cross-subsidies supporting high cost rural and remote areas until such

time as the CRTC has made its decisions regarding an appropriate high

cost serving area mechanism.



In addition, the Province has directed SaskTel to:



Relinquish control of simple wiring within individual

residences or business premises, to allow alternative local

competitors to connect to those wires;



Make directory listing information available for resale

under terms and conditions consistent with those in other

parts of Canada.



To help Saskatchewan residents make informed choices, local

service providers will be required to notify their customers of

any limitations they may have in delivering information to

Saskatchewan's 911 Public Safety Answering Points. Local service

providers will also be responsible for billing and collecting

9-1-1 charges from their customers in the same manner as SaskTel

is currently required to participate in this service.



Local competition is currently in its developmental phase and is

focused on major downtown urban markets. Therefore, unlike long

distance competition, consumers are unlikely to experience any

dramatic changes in their local service. Rather, it is

anticipated that local competition will be implemented very

gradually in the Saskatchewan market.



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Media please note: The background document attached to this News Release provides additional details about the announcement.



For more information, contact:



Rob Cunningham

Intergovernmental and Aboriginal Affairs

Regina

Phone: (306)787-8008