richard@uunet.uu.net (Richard Sargent) (08/24/89)
The following is extracted, without permission, from an insert found
in my latest bill from Bell Canada (still regulated, thank goodness!).
* THE LONG DISTANCE BARGAIN
At a time when the prices of almost everything you buy have gone up,
it's always a surprise to find that some prices have actually gone down.
Yes that is the case with the price you pay for Bell Canada long
distance service.
Since 1986, long distance prices have dropped:
- 26%, on average, for calls within Bell territory (Ontario, Quebec,
and parts of the Northwest Territories);
- 31%, on average, for calls from Bell territory to other provinces; and
- 11.6% for calls to the United States and 27.7% for calls overseas.
These rate reductions apply to discount periods (evenings and weekends)
as well as the normal business day.
* LOW RATES FOR LOCAL SERVICE
While Bell's long distance prices have dropped, rates for local service
have remained stable for five years running. Since 1984, local rates for
Bell customers have gone up by less than four per cent, on average.
Meanwhile, the Canadian Consumer Price Index has gone up by 20 per cent.
This means that the amount of time you have to work to pay for basic
service is shorter. For the typical Bell residential customer, it's now
45 minutes a month, down from 50 minutes five years ago.
In comparison, since 1983, according to the Unuted States Federal
Communications Commission (FCC), local service rates in the U.S. have
gone up an average of 48 per cent. And local service in the U.S. is
far more expensive than in Canada. Examples of monthly rates for local
service, not including installation charges (in Canadian dollars):
U.S.A. CANADA
Buffalo $32.10 Quebec(city) $ 9.60
Cleveland 23.66 Montreal 11.60
Milwaukee 25.96 Toronto 12.60
* One Reason For Low Rates
A key reason local rates are so low in Canada is the subsidy from
long distance revenues.
With the subsidy, local rates are priced below cost, with long
distance above cost.
At the same time, more than 98.5 per cent of households in Bell
Canada territory have telephone service (Even the U.S. can't match
this: 93 per cent of American households have service).
For 1989, we expect that about $1.8 billion of our long distance
revenues will be needed to help cover the cost of local service.
That's a subsidy of about $20 a month for a typical residential
customer.
====================== End of Verbatim Excerpt ======================
I note phrases like "American households" versus "households in Bell
Canada territory". Also, I have no idea of the validity of comparing
the various cities as Bell did. I wonder how the rates are in cities
like Miami, Washington, and New York.
Unfortunately, I neglected to bring the itemized portion of my bill
to work, so I can't break down the costs. My average monthly bill
is in the neighbourhood of $30-35. This includes a number of long
distance calls to my in-laws (during evening hours), and such nasties
as a "touch tone" surcharge. As an aside, Bell in the past has
tried to convince customers to get touch tone service, since it is
cheaper and better for Bell, however, the want you to pay for that
privilege! I understand it is (was?) the same in the U.S.
Richard Sargent Internet: richard@pantor.UUCP
Systems Analyst UUCP: uunet!pantor!richard