Dave Sullivan
Northern News Services
Yellowknife (Jun 18/01) - The North's phone company brought in $8.5 million more in operating revenue last year, compared with 1999. That represents a 6.1 per cent increase, to more than $148 million, for NorthwesTel.
The extra revenue is due mainly to higher basic phone rates, accounting for $4.7 million of the increase, according to the company's annual report.
During the same period NorthwesTel, which is owned by Bell Canada, dropped long-distance rates, losing $2.1 million in long-distance revenues, nearly a three per cent decrease. Operating expenses were up 5.6 per cent, largely due to a new billing system.
Last year's profit was a healthy $13 million, comparable to 1999.
"The year 2000 will be long remembered as a year of notable regulatory proceedings and decisions," chairman Murray Makin says in the report. "The regulatory process consumed much of our attention and available resources."
Last year the CRTC, Canada's telecommunications regulator, gave the green light for competitors to enter the North's long-distance market. So far there are no takers.
"It is difficult to predict which companies will choose to offer long-distance service in the North and in what form," Makin's report said.
Another part of the report says the prospect of competition means "our future focus will centre on substantially improving the quality and availability of services."
Improvements include spending $67 million over four years to extend basic phone service and other upgrades.
To help pay for the improvements, the CRTC also ruled last year that Canada's other phone companies must hand over to NorthwesTel $15 million a year.
