CRTC hears NorthwesTel phone rate changes

The CRTC is holding hearings in Yellowknife to determine whether NorthwesTel can raise monthly telephone bills by $2 so it can upgrade infrastructure and improve services.

The company wants to provide remote communities with caller ID services as well as making teleconferencing cheaper for businesses.

"So were here to look at NorthwesTels prices that they charge consumers, as well as look at other issues like local competition, quality of service as well as the funding NorthwesTel gets to provide service," said John Macri, the Canadian Radio-television and Telecommunications director of telecommunication policy.

Curtis Shaw, vice-president of consumer and small business for NorthwesTel, said the amount it charges each month is not enough.

"Our residential phone service, in the majority of communities we service, loses money," he said. "It costs much more than $31 a month to provide service."

Northwestel offers phone, cable television, internet and mobile services in Yukon, the Northwest Territories and Nunavut, as well as in parts of northern British Columbia and Alberta.

Competition a key issue

The company says it amounts to more than 4 million square kilometers and is the largest service area in the Western hemisphere.

Macri said competition would be an important issue.

"Theres some interest this time around with respect to having another company compete with NorthwesTel," he said.

The hearings will focus on telephone services and not on theprice or quality of internetin the North.

The CRTC is expected to make a decision by the end of the year and any potential rate hikes could be in effect by January.