SaskTel is committed to providing the highest quality of service to its customers at competitive prices, recognizing that national regulatory decisions made by the Canadian Radio-television and Telecommunications Commission (CRTC) will impact the prices SaskTel charges for its regulated services.

Over the past number of years, the CRTC has reduced the level of subsidy for local service in high cost serving areas. As a result, SaskTel will be increasing local service rates by the annual rate of inflation.

Effective June 1, 2019, local service rates in high cost serving areas will increase by 1.69% or $0.53 (plus taxes) per month. Your overall local service rate will now be $32.42 (plus taxes) per month and will be noted in the Residential Telephone Line charge on your SaskTel phone bill. Your local service rate is still below the actual cost (as confirmed by the CRTC) of providing your service.

High Cost Serving Areas are locations outside the local calling exchanges of Regina, Saskatoon, Moose Jaw, Swift Current, Yorkton, Estevan, Weyburn, Prince Albert, and North Battleford.

Questions

1. What constitutes a High Cost Serving Area?
2. What will the 2019 residential HCSA rate increase look like?
3. How will the rate increase be implemented?
4. Why is SaskTel implementing this rate increase and why by 1.69% ?
5. What is the overall financial impact for SaskTel?
6. Why is SaskTel raising local service rates in high cost serving areas in Saskatchewan and not in urban centres?
7. Will I see pro-rating on my bill?
8. How will High Cost Service Area customers be notified of this rate increase?

Based on criteria set out by the CRTC, HCSA are locations outside the local calling exchanges of Regina, Saskatoon, Moose Jaw, Swift Current, Yorkton, Estevan, Weyburn, Prince Albert and North Battleford.

All residential High Cost Serving Area customers will see a rate increase of $0.53/month. The local access rate will increase from $31.89 to $32.42.

3. How will the rate increase be implemented?

Customers will see a rate increase of $0.53 on their monthly SaskTel bill.

4. Why is SaskTel implementing this rate increase and why by 1.69% ?

Over the past number of years, the CRTC has moved to reduce the level of subsidy for local service in high cost serving areas. The CRTC has concluded that residential local telephone rates in rural and remote areas should be raised by the annual rate of inflation each year. The actual rate of inflation for 2019 is 1.69%.

5. What is the overall financial impact for SaskTel?

These rate increases are revenue neutral for SaskTel.

6. Why is SaskTel raising local service rates in high cost serving areas in Saskatchewan and not urban centres?

It is much more costly to serve rural and remote areas of the province, as opposed to cities and towns.

Residential customers in high cost areas, where it is more expensive to provide basic local telephone service, have generally paid rates that were below cost. The CRTC's policy is to move rates closer to actual costs as long as prices remain just and reasonable. Rates in urban centres better reflect the cost to provide service. The increase in rates in high cost areas will make the local access products in these areas more compensatory.

7. Will I see pro-rating on my bill?

Yes, you will see pro-rating on your bill. Prorating will apply, depending on customer billing periods.

8. How will High Cost Service Area customers be notified of this rate increase?

A message will be displayed on your April SaskTel bill (located on the first page of the bill below the "Billing Summary"). The bill message will be on every SaskTel customer bill; however, the rate increase only applies to High Cost Service Area customers.

Bill Message:

Attention Rural High Cost Service Area customers: effective June 1, 2019, your residential telephone line rate will increase by $0.53 (plus taxes) per month. Please visit www.sasktel.com/hcsa or call 1.800.SASKTEL for more information.