Thank you, Mr. Speaker. Earlier this year the CRTC began a review of whether or not long-distance competition should be introduced in the north. The process leading up to this decision has included a great deal of consultation and there is still an opportunity to provide input until October 31st.
Telecommunications play a vital role in northern society and in the northern economy. I believe telecommunications reduces isolation between our remote communities, connects us to the world and can provide a vital lifeline to services such as health, education and policing. The same factors that make telecommunications so critical, like remoteness and the harsh climate, also result in high costs, almost double the cost in southern Canada. It is vital that long distance communications costs do not defeat our ability to compete globally and that basic telephone services are available at reasonable cost to all residents.
NorthwesTel's network today extends across the north and customers now have the lowest rates for local services in Canada. However, we also have the highest long distance rates in the country because our local rates are being heavily subsidized by long distance revenues. This subsidy to achieve low local rates is not likely to continue. NorthwesTel has stated that, with or without competition, they intend to rebalance their rates. This means they will increase the price for local services and reduce long distance charges. The Government of the Northwest Territories recommends to the CRTC that local rate changes be limited to an increase of $4 per month in August, 1998, and another $6 per month in August, 1999, with equal reductions being made to their long distance rates.
The Government of the Northwest Territories position paper also requests that the CRTC recognize the urgent need to develop new mechanisms or subsidies, funded on a nation-wide basis, to support the high cost of telecommunications services to remote communities in the north and in other parts of Canada. In southern Canada, long distance competition has resulted in significant price reductions, service packages tailored to individual customer needs and suppliers are more responsive than ever. Our position paper to the CRTC recommends that northerners can also benefit from long-distance competition. In short, we feel that:
The CRTC should immediately allow certain aspects of competition, specifically allowing competitors to purchase and then resell NorthwesTel switched long distance services. Full competition will require changes to NorthwesTel's network, and we recommend this be in place no later than September, 1999.
Any company who decides to compete with NorthwesTel for northern dollars should have certain obligations. For example, competitors should contribute to NorthwesTel's competition start-up, such as network modifications to allow competition.
Some amount of subsidization of local services by long distance revenues will still be necessary, and competitors should match NorthwesTel's level of subsidization.
Quality of service should be vigorously maintained.
Lastly, we feel that any new competitors should be encouraged to invest in capital and jobs in the north.
--Applause