CRTC DECISION GOOD FOR RURAL AND NORTHERN SASKATCHEWAN

Released on December 8, 2000

Rural and northern residents in Saskatchewan will continue to have affordable

residential phone service as a result of a recent Canadian Radio-television and

Telecommunications Commission (CRTC) decision.



The decision comes after three years of vigorous lobbying efforts by the

Government of Saskatchewan, other provincial and territorial governments and a

wide range of organizations. Under the decision, the CRTC will establish a

national industry-funded mechanism to support residential telephone service in

Canada's high cost areas.



"This is a triumph for Saskatchewan and for Canada since the universal service

fund actively contributes to the social and economic fabric of our nation,"

Intergovernmental and Aboriginal Affairs Minister Jack Hillson said. "This is

a national solution to a national problem."



The CRTC has directed telecommunications service providers, including SaskTel,

to contribute a percentage of their eligible revenues to a national service

fund.



The purpose of the fund is to assist in providing affordable residential

service to residents in rural and northern areas throughout the country. All

companies providing telecommunication services to rural and northern residents

will be able to access this fund.



"This decision ensures residential service rates will remain affordable and

reasonably comparable throughout Saskatchewan," Crown Investments

CorporationMinister John Nilson said. "A universal service fund will provide a

stable, predictable, and competitively neutral source of funding for supporting

rates in high cost service areas. These were all key features of Saskatchewan's

proposal and we are pleased that the CRTC agrees that they should be part of a

national plan."



The decision eases pressure for substantive residential rate increases in

provinces like Saskatchewan with relatively large rural and northern

populations. SaskTel remains committed to honouring its announced freeze on

local rate increases to 2002.



"Saskatchewan's rural communities and farm residents have an important role to

play in the provincial and national economy. This decision should ensure that

rural and northern residents will continue to have affordable access to the

telecommunication services they need to keep in touch in the information age,"

said Sinclair Harrison, President of the Saskatchewan Association of Rural

Municipalities.



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For more information, contact:



Wendy Campbell Darcee MacFarlane

Intergovernmental and Aboriginal Affairs SaskTel Corporate Affairs

Regina, Phone: (306) 787-8008 Regina, Phone: (306) 777-4441