Yellowknife (Apr 14/06) - Northwestel wants to raise rates for local calls, which it says will eventually lower the cost of long distance.

But the move is making waves with Yellowknifers who think they're paying more than enough already.

"I pay for two phones every month and my bills can be up to $200," said resident Shauna Ekotla.

Northwestel is applying to the Canadian Radio-Television and Telecommunications Commission (CRTC) to have more autonomy over what it charges for services.

If the proposal is approved, Northwestel will increase local call rates by Jan. 1, 2007, for residential and business customers by two and five dollars respectively.

If approved, the proposal will allow Northwestel to have more control over its rates instead of waiting for the CRTC to approve its plans.

"We'll be market driven and be able to respond more quickly," said Anne Kennedy, Northwestel director of public affairs.

She said the increase in price is a reflection of how expensive it is to do business in the North, especially in remote communities.

Some Yellowknifers say the only way rates will decrease is to have another choice in service providers.

"If we had someone else providing services, we'd have better prices," said Rob Dickson, owner of Dickson Trucks.

Dickson said he makes his fair share of long distance calls and has no choice but to pay what Northwestel charges.

But Northwestel said there is competition in the NWT, just in a different form.

"Our competition is from long distance calling cards," said Kennedy.

She could not say what kind of savings people can expect on long distance calls if their new plan is approved, but said customers will have more choice with regards to low-rate times of day and calling rates for certain countries.

Northwestel is the only company providing local phone services in the North. Providing service here is expensive, according to Northwestel, and so the CRTC provides funding in the form of subsidies from other Canadian telecommunications companies.

Northwestel is applying for $38.6 million in the same proposal to be used in 2007. Those funds would be used to fix facilities and replace obsolete equipment, which will give customers better service, Kennedy said.

The company has received $85 million over the last five years from the same funding model.

A public meeting to discuss the issue will be held July 10 in the Northwestel Tower conference room at

10 a.m.