2008 news releases

SaskTel Introduces Significant Long Distance Price Reductions and Files with the CRTC for Local Service Rate and Payphone Rate Increases

February 22, 2008

SaskTel today announced further rate changes in light of continued competitive and regulatory pressures.  SaskTel will introduce significant long distance rate decreases in three of its major Long Distance plans:

• Anytime North America Unlimited Long Distance plan - $3.00 reduction;
• Evenings and Weekends North America Unlimited Long Distance plan – reduction from seven cents to five cents per minute outside plan hours;
• Straight Rate North America Savings Plan – reduction from seven cents to five cents per minute.

Also, SaskTel will file an application to the CRTC to increase residential local telephone service rates in high cost serving areas in Saskatchewan by approximately 2% effective March 20, 2008 and by approximately 3% effective June 2, 2008.  Payphone rates will increase to $.50 for local calls paid for in cash effective June 2, 2008.

The CRTC’s Price Cap Decision, which establishes the regulatory framework under which all major incumbent telephone companies must operate, reduced the subsidy provided to high cost serving areas annually by the lesser of the rate of inflation (this year 2.14%) or 5%, which essentially forces the incumbent telephone companies to increase rates in rural and remote areas of the country. 

“SaskTel’s appeal of this CRTC decision was rejected and it leaves us with little choice but to proceed with the rate increases, however, we are introducing significant long distance rate decreases that more than offset the increases,” said Robert Watson, SaskTel President and CEO.  “This latest round of price changes will have an overall negative impact of approximately $4 million on SaskTel’s revenues, as SaskTel remains committed to providing the highest quality of services to its customers at competitive prices.”

Effective March 20, 2008, residential local access customers in high cost serving areas will see a rate increase ranging from $0.41 to $0.67 per month and approximately a 3% increase again on June 2, 2008.  Customers in high cost serving areas will continue to receive local telephone service for rates that remain among the lowest in Canada and are below the actual cost of providing the service.  Payphone rates will rise to $0.50 for local calls paid for in cash, but retain the rate of $0.25 per call for payphone calls using a prepaid payphone pass for the immediate future.  SaskTel has not had a payphone rate increase since 1983.

Customers on unlimited long distance calling plans will pay less, and rates to Canada and the United States will be reduced to 5 cents per minute for customers on the Straight Rate North America Savings Plan.

Please refer to the Media Backgrounder for full details on the rate changes.

About SaskTel

Saskatchewan Telecommunications Holding Corporation (SaskTel) is the leading full service communications provider in Saskatchewan, offering competitive voice, data, dial-up and high speed internet, entertainment and multimedia services, security, web hosting, text and messaging services, and cellular and wireless data services over its digital networks.  The Corporation also provides security monitoring services through SecurTek, directory services through DirectWest, in-room communications services to the healthcare sector through Hospitality Network, telecommunications consulting service through SaskTel International and an out-of-province sales and service channel in Alberta and British Columbia. SaskTel and its wholly-owned subsidiaries have a workforce of approximately 5,100 full-time, part-time and temporary employees.

For media inquiries only, please contact:

Darcee MacFarlane, SaskTel Corporate Communications
Phone: (306) 777-4441
E-mail: darcee.macfarlane@sasktel.sk.ca