Sprint Canada Lauds CRTC

Sprint Canada is encouraged by the Canadian Radio-television Telecommunication Commission's pro-competitive stance

December 24, 2002

1 Min Read

TORONTO -- Sprint Canada, a Call-NetEnterprises Inc. (TSX: FON, FON B) company today commended the CanadianRadio-television Telecommunication Commission's (CRTC) decision (CRTC 2002-78),establishing interim competitor digital network access (DNA) service rates.The decision will reduce Sprint Canada's carrier costs by $20 - 25 millionannually. "With today's decision we have now achieved the level of savingsenvisioned by the CRTC as a result of the price cap decision seven monthsago," said Bill Linton, president and chief executive officer of SprintCanada's parent company Call-Net Enterprises. "However, we continue tobelievethat even greater reductions are warranted before we achieve a leveltelecommunications playing field in this country. We encourage the CRTC tomove swiftly in making decisions with respect to expanding the servicescovered by the DNA tariff, the costing proceedings and other matterscurrentlybefore the Commission." Today's decision is part of a follow-up proceeding to the Commission'sMay 2002 price cap decision. As part of the price cap decision, incumbentlocal exchange carriers (ILECs) were ordered to file cost studies forproviding digital network service access. The filings showed that the ILECscost of providing DNA service components was significantly below the ratescharged to competitive local exchange carriers (CLECs) such as SprintCanada.Sprint Canada petitioned the CRTC to establish interim rates so that thereductions could be passed along to CLECs prior to the conclusion of theproceedings, several months from now. "While this is the third major regulatory victory for CLECs in as manyweeks, we believe that continued regulatory action is required in order toovercome the advantages of incumbency and develop a healthy competitivetelecommunications environment," added Linton. "A competitive localtelephoneservice market will not develop quickly based on the conditions in placetoday. The CRTC must make pro-competition decisions."Sprint Corp.

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