Should consumers benefit from telco income trusts?

In the CRTC’s Price Cap hearings in Ottawa today, Commissioner Stuart Langford asked the TELUS expert witnesses if consumers should be beneficiaries of the reduction in taxes that result from the restructuring. Since taxes were a consideration in setting the initial rates entering the Price Cap regime, should a permanent reduction in taxes be reflected in a specific ‘productivity benefit’ and result in reductions in prices for consumers.

Langford suggested that if tax rates were suddenly increased, telcos would apply for an exogenous rate increase.

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