SASKTEL RATE ADJUSTMENTS APPROVED

Released on March 14, 2000

The government has accepted the Saskatchewan Interim Rate Review Panel's

recommendations on SaskTel's rate change requests.



Effective March 17, residential customers in Saskatchewan will pay a flat

monthly rate of $22 for basic telephone service. That amounts to an increase

of between $2.65 and $3.35 per month, depending on the customer's current

charge.



Other changes, which will also take effect March 17, include:



a new $.75 charge for directory assistance on new listings;



an increase of between $2 and $13 for service connection charges for

homes and businesses, depending on whether field visits are required;

and



changes to basic local service rates for businesses, which vary from a

decrease of $3.25 a month to an increase of $6.15 a month, depending on

the type of service.



The government also agrees with the panel's recommendation to disallow two of

SaskTel's requests. Excess mileage charges will not be changed and discounts

for rotary dial telephones will not be removed. Those discounts will remain at

$2.50 per month for homes and $3.50 per month for businesses.



"We believe that the panel's recommendations are fair and reasonable," Crown

Investments Corporation Minister John Nilson said. "The panel has done a

thorough job of evaluating SaskTel's requests and considering the interests of

customers, SaskTel and the public. Even with these changes, the rates that

Saskatchewan people pay for local telephone services for homes and businesses

will continue to be among the lowest in Canada."



"In recent years, SaskTel has improved its savings plans, eliminated many

exchange areas and introduced the Community Savings Plan, the Straight Rate

Savings Plan and consumer bundles," Nilson added. "All of these actions have

saved money for SaskTel customers and improved services, particularly in rural

areas."



The Interim Rate Review Panel hired a consultant to examine SaskTel's

requests. The panel held five public meetings across the province and received

more than 100 calls to its toll-free phone line. More than 40 people made

written submissions to the panel by mail, E-mail and fax.



"We would like to thank everyone who provided input to the panel and assure

them that their views have been given full consideration," Nilson said. "We

would also like to thank the panel for all of its work on this review. Chair

Gerald Fiske, vice-chair Bob Lacoursiere and members Joan Meyer and Frank

Degenstein have again demonstrated their commitment to this very important

task."



The Saskatchewan Interim Rate Review Panel was established in November, 1999 to

consider applications for rate changes from monopoly Crown corporations. The

government is continuing to develop options for a permanent rate review

mechanism.

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For more information, contact:



Karen Schmidt

Crown Investments Corporation

Regina

Phone: (306) 787-5889