Let’s face it. Payphones are important, but these days this dated technology is a limited breed. Canadians, especially in urban locations, grab their cellphone rather than a quarter. Even with the introduction of the new wireless players, who offer unlimited talk and text plans for $15/month, have made the payphone and home phone a declining business for the major Canadian telecommunications companies.
The CRTC announced today that they’ve declined a request from Bell (which includes Bell Canada, Bell Aliant and Télébec) to increase the payphone rates by up to $1 for cash calls and $2 for non-cash calls (credit cards). The respected companies argued that if the rates increased “would slow the rate at which payphones are being removed.” According to the filing, “the Commission noted that while payphones were removed from service during the past few years in response to declines in revenues and demand, the record of that proceeding did not indicate the extent to which the widespread availability of advanced technology and services had affected the demand for payphone service, particularly among persons who earn low income and those living in rural and remote communities.”
The bottom line is that more people are choosing to communicate from a wireless device and the role of the payphone has significantly declined. Jean-Pierre Blais, Chairman of the CRTC, said “This trend is likely to continue regardless of the rate charged for payphone services, and highlights the need to reassess the role of payphones.”
As a result, the CRTC is seeking feedback from Canadians on the importance of the payphone and specifically “whether it would be appropriate to prohibit telephone companies from removing the last payphone in a community.” The CRTC consultation will be open until August 13th, 2013 and you can submit your comments online.
“This consultation will give us a clearer picture of how payphones are being used and by whom,” said Mr. Blais. “It will also help us assess how possible rate increases and the removal of payphones may affect Canadians, and whether any regulatory action is necessary.”
Source: CRTC online form
Via: CNW, Flickr
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