The Canadian Radio-Television and Telecommunications Commission (CRTC) has approved a rate increase for SaskTel customers in high cost served areas. Those are areas serviced by SaskTel outside of the Saskatchewan's nine largest urban areas.
The decision affects approximately 144,000 customers.
"The rate increase was essentially required by the CRTC decision that mandated high cost serving area (HCS) rates need to increase to $30 per month across the country by June 30, 2013, in order to reduce the amount these rates are subsidized from the National Contribution Fund," SaskTel president and CEO Ron Styles said in a press release.
In 2007, the CRTC reduced the amount of subsidy SaskTel received to provide local service in HCSA and in 2011, released a decision allowing the rates to increase to $30 per month in three equal installments.
Rates will increase from seven cents to $2.03 per month on February 1, 2012, depending on the customer's current rate and will be applied retroactively to a customer's bill beginning on May 1, 2012.
There will be two additional increases after that (on June 1, 2012 and June 1, 2013). The third increase will bring the rate up to $30 per month.
After the third increase, rates may be increased by inflation starting in 2014. SaskTel claims the increase will be revenue neutral for the company.
The Canadian Radio-Television and Telecommunications Commission (CRTC) has approved a rate increase for SaskTel customers in high cost served areas. Those are areas serviced by SaskTel outside of the Saskatchewan's nine largest urban areas.
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