85.8EM Deregulation of Telephone Industry
Whereas, An application has been made to the Canadian Radio-Television and Telecommunications Commission (CRTC) by CN/CP which seeks permission to provide long-distance service; and,
Whereas, Granting of such permission will mean deregulation of the telephone industry as it now exists; and,
Whereas, The long-distance market, where the larger profits are made, traditionally has provided subsidies to the non-profit area (i.e. local service, installations, and repairs). This is known as cross-subsidization similar to other areas of public service like the Post Office; and,
Whereas, Granting permission to CN/CP to go into competition with present telephone companies will relieve such companies of the burden of subsidizing non-profit service out of their profits; and,
Whereas, With their profits substantially reduced, the existing companies will have no alternative but to raise monthly rates and installation, repairs, and other rates; and,
Whereas, Those most affected will be seniors, particularly those housebound, lower-income families and especially volunteer organizations, many of whom exist through the use of the telephone; and,
Whereas, The ever-increasing postal rates necessitate even greater dependence on the telephone for volunteer organizations;
therefore, be it,
RESOLVED, That The National Council of Women of Canada urge the Government of Canada not to deregulate the telephone industry.