by Nancy Gardiner
Northern News Services

NNSL (June 04/97) - NorthwesTel's model for long-distance competition includes rates 15 per cent higher that those of competitors.

However, long-distance rates would fall by between 40 and 80 per cent with real competition by 1999 or 2000 if its proposal is approved.

The CRTC asked NorthwesTel to come up with a model for competition in its operating area, following a request by Sprint Canada's Call-Net last October. Although Sprint Canada's request was denied on Feb. 28, the CRTC did initiate proceedings to examine ways to introduce long-distance competition in NorthwesTel's area.

NorthwesTel submitted its proposed model to the CRTC last Friday.

Even at 15 per cent above competitors, NorthwesTel expects to maintain 70 to 80 per cent of the long-distance market, according to Ray Wells, NorthwesTel vice-president of transformation.

But there is no doubt the telephone company will lose some customers, says company president Jean Poirier. Rate re-balancing is going on for the next three years.

A CRTC decision is expected any day on an application for a $4 hike in basic local service rates. Further increases have also been sought -- another $4 in mid-1998 and again in 1999. Then in mid-1999, another $6 monthly increase in basic local service combined with long-distance toll reductions.

Under the scheme, the basic monthly phone bill would rise from about $12 to the $30 range by 1999.

In addition, the company proposes two phases to long-distance access to competitors. NorthwesTel proposes to act as a wholesaler of long-distance service to its entire operating area by late 1998 under a system of reselling and rebilling.

Competitors would lease NorthwesTel facilities and sell long-distance services to customers.

The second phase of "equal access" would involve the communities of Whitehorse, Yellowknife, Fort Nelson, B.C., and Iqaluit in mid-1999. It means customers would not have to dial extra digits to access another long-distance telephone company in those communities.

The CRTC plans Northern regional consultation on long-distance competition later this month. It will meet in Yellowknife on June 24.

NorthwesTel provides services to 110,000 residents in the NWT, Yukon and northern B.C.