Sasktel has announced that it is appealing parts of the CRTC’s Price Cap Decision (2007-27), dealing with mandated price increases in ‘high cost serving areas’:
We believe the part of the CRTC’s recent Price Cap Decision that systematically reduces the amount of subsidy SaskTel receives to support residential service in high cost serving areas was not within the original scope of the proceeding. This decision essentially forces SaskTel to raise rates in high cost serving areas. We want to continue providing our customers in high cost serving areas with affordable phone service but this decision ultimately ties our hands, therefore, we feel strongly that the CRTC should re-evaluate and conduct a separate hearing to deal with this issue.
The appeal is based on procedural grounds, with SaskTel asserting that the issue was not part of the original scope of the proceeding and therefore the CRTC did not solicit sufficient evidence upon which to base its determination.
SaskTel is a provincial crown corporation. A reduction in transfer payments to rural operators (such as SaskTel) from other carriers is a resultant effect of the Price Cap determination to raise rates in high cost serving areas.
Update [July 13, 12:35 pm]
The appeal is in the form of a Review and Vary application back to the CRTC, asking it to review its own decision.