The Canadian Radio-television and Telecommunications Commission ruled Wednesday that, effective July 1, 2000, competition in long-distance telephone services will be introduced in regions served by the North's only telephone company.

The commission said breaking NorthwesTel's monopoly would be in the "public interest" -- but not right now. Premature competition would "adversely impact" the company's ability to be a full-service provider of last resort, it ruled.

"As a result of the commission's decision, the majority of NorthwesTel's subscribers will benefit from dramatic reductions in their monthly telephone bills, because of their heavy reliance on long-distance services," CRTC chair Francois Bertrand said.

NorthwesTel president Jean Poirier said the company must review the CRTC's decision carefully before commenting.

He did say, however, that the company, 100 per cent owned by Bell Canada, is "pleased we have a decision."

The decision means that the cost of local telephone service will jump $4 a month on Aug. 1 of this year and a further $6 on Aug. 1, 1999.

The hikes are part of a scheme to rebalance local and long-distance charges.

NorthwesTel's long-distance rates are among the highest in the country, yet its customers are the heaviest users of long-distance services.

Local service is now among the cheapest in Canada. For fair competition, local rates will have to increase, moving them closer to actual costs, the CRTC said.

"At the same time, it is expected there will be significant reductions in toll rates," the CRTC said.

But the decision is vague about lower long-distance rates. The commission has only ordered Northwestel "to move long-distance rates so they are similar to those in the South."

NorthwesTel has 110,000 customers in the NWT, Yukon and northern B.C.