Doug Ashbury
Northern News Services

Yellowknife (Jan 31/00) - NorthwesTel's profits jumped 115 per cent last year, reports the company's chief financial advisor.

Last year was "a good year," for the Northern telecommunications company, says Ray Hamelin.

NorthwesTel, which is owned by Bell Canada, made $13.1 million in 1999 compared to $6.1 million the previous year. As for annual expenses, the company's total costs were $105.2 million in 1999 compared to $102.8 million last year. Bell Canada is 80 per cent owned by BCE Inc.

"Essentially the revenue line was more; particularly on the long-distance side," said Hamelin.

The long-distance revenue increase was "particularly due to settlements with other companies."

But increased revenues -- total revenues rose to $139.9 million from $131.4 million -- were not from Northerners making more long-distance calls, adds Hamelin

It sounds bizarre, but NorthwesTel's long-distance revenues rose because people made less calls south.

Northerners are waiting for friends and relatives to call because many southern Canadians have the "$20 a month" plan. When Northerners call south, friends and relatives often say, "hang up and I'll call you right back."

Regardless of where the call originates and terminates, if it includes NorthwesTel's area, the Yukon-based company gets a piece of the action through agreements other phone companies.

Hamelin said long-distance rate changes proposed by NorthwesTel will likely quash the trend of higher south-to-north calling.

NorthwesTel is proposing to introduce a $20- per-month program Jan. 1, 2001. Under the program, NorthwesTel customers will be able to make up to 600 minutes of calls during weekends and evenings each month for $20. Additional minutes will cost 10 cents each.

For businesses, NorthwesTel is proposing 13 cents a minute any time within the company's area and 16 cents a minute to the rest of Canada (19 cents to the U.S.).

Local monthly services rates will rise $5.