The Canadian Radio-Television and Telecommunications Commission (CRTC) has approved a rate hike for SaskTel customers in high cost served areas.
Those are areas serviced by SaskTel outside of the province’s nine largest urban areas.
The decision affects approximately 144-thousand 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 rise to $30 per month in three equal installments.
Rates will increase from seven cents to $2.03 per month on February 1st depending on the customer’s current rate and will be applied retroactively to a customer’s bill beginning on May 1st.
There will be two additional increases after that – on June 1st and then on 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 says the increase will be revenue neutral for the company.
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