2006 news releases

SaskTel Calls For Immediate Telecom Policy Reform In Light Of CRTC's Decision On Local Forbearance

April 7, 2006

The Canadian Radio-television and Telecommunications Commission (CRTC) released its decision on the future of regulation for local exchange services, which it claims reflects a reliance on market forces as the criterion for its deregulation of companies, such as SaskTel. SaskTel is very disappointed in this decision. The criteria which the Commission has adopted will, in fact, deny the benefits of innovation and more competitive pricing to SaskTel's customers for many years to come.

"This decision reaffirms the need for the federal government to begin reform of the CRTC sooner rather than later as the decision demonstrates the extent to which the CRTC is incapable of understanding the Saskatchewan market," John Meldrum, SaskTel Vice President Corporate Counsel and Regulatory Affairs said. "This decision adds new rules to an already out-of-date regulatory framework, and SaskTel will be considering all avenues of appeal."

The federal government should take immediate action to overturn yesterday's decision on local forbearance by the CRTC. The Telecom Policy Review (TPR) panel just released its report which recognized the immediate need for reform of the existing policy framework given the revolution in the telecommunications industry brought about by the convergence of communications technologies. The TPR panel's comprehensive analysis of the industry concluded that marketing and promotional restrictions are not justified and are in fact detrimental to competition and harmful to customers. The CRTC's decision is in stark contrast to the TRP report which demands a more hands-off regulatory approach with greater reliance on market forces.

"This is not the kind of regulation Saskatchewan consumers want. We have presented the Commission evidence from a survey that over 80% of Saskatchewan residents prefer that all telecommunications service providers be subject to the same regulatory oversight, rather than a situation that benefits a few and disadvantages one," added Meldrum.

About SaskTel
SaskTel employs over 3,800 people in communities throughout Saskatchewan and is the leading full service communications provider in the province. It offers competitive voice, data, internet, entertainment and multimedia services, web hosting, text and messaging services over a state-of-the-art digital network. The Corporation also provides cellular and wireless data services, security monitoring services, directory services, in-room communications services to the healthcare sector through Hospitality Network, telecommunications consulting service through SaskTel International and national communications services through Navigata Communications. Visit SaskTel at www.sasktel.com .

Contact

Michelle Englot , SaskTel Corporate Affairs
Phone: (306) 777-4476
E-mail: michelle.englot@sasktel.sk.ca