June 28, 2000

Consumer and Corporate Affairs Minister Ron Lemieux has expressed disappointment over the federal government’s decision to reject a Manitoba-Saskatchewan petition to protect the telecommunication interests of rural and northern residents.

"By rejecting our petition, the federal government has effectively ensured that the future of telecommunications services in rural and northern areas of Canada will be negatively affected," said Lemieux. "This is a major blow to the future of rural and northern telecommunication services."

In January, Manitoba and Saskatchewan petitioned the federal government to modify an October 1999 CRTC decision on service to high- cost areas. The commission directed telephone companies to meet a basic level of service, but "basic service" was defined as only individual line service and low-speed Internet access.

"For many Manitobans, that level of service is little more than what they have now," said Lemieux.

When the Manitoba-Saskatchewan petition was sent to Ottawa, Highways and Government Services Minister Steve Ashton said, "The level of service in rural and northern areas already needs enhancement and this decision will do little to improve service. Without improvements, rural and northern regions will be cut off from important opportunities for social and economic development."

Aboriginal and Northern Affairs Minister Eric Robinson noted, "This is a question of equity for rural and northern residents. We have to ensure that all Manitobans, regardless of where they live in the province, have equitable access to telecommunication services."

Manitoba and Saskatchewan supported the CRTC’s intention to order improvements for the far north--Nunavut, the Yukon and the Northwest Territories. However, the provinces felt the commission did not ensure that the needs of rural and northern residents in the provinces will be met in the long term.

In their petition they asked that:

• The federal government direct the CRTC to adopt a set of principles to protect and advance the communications needs of Canadians living in all rural and northern areas. Similar principles were adopted by the U.S.
• The CRTC’s definition of a high-cost serving area be expanded to include all rural and northern areas of Canada, including such areas within provinces.
• A new national fund be created with contributions from telecommunication service providers from across Canada to ensure all Canadians in rural and northern areas have access to telecommunications services that are reasonably comparable in quality and cost.

Federal Industry Minister John Manley, in announcing the federal cabinet’s decision to turn down the Manitoba-Saskatchewan petition, in effect, merely restated the position of the CRTC, Lemieux said. Manley reported that federal cabinet "is directing the CRTC to report annually over five years on the status of telecommunications competition and deployment of advanced services across Canada."

"The federal government has effectively turned its back on Manitobans living in rural and northern areas," said Lemieux. "Their decision today fails to safeguard the interests of these Manitobans and will do nothing to ensure that the future telecommunications needs of rural and northern Manitoba are met."

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