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MTS pay phone calls to cost 50 cents

Last Updated: Tuesday, June 12, 2007 | 7:55 AM ET

Manitobans will have to scare up an extra quarter to make a local call from a pay phone, starting next Monday.
 
On Monday, the Canadian Radio-television and Telecommunications Commission (CRTC) approved MTS-Allstream's request to increase pay telephone rates to 50 cents from 25 cents in June, shortening a previously proposed notification period.
 
Fewer people have been using the public phones to make calls in recent years, as more and more people carry cellular phones, said MTS-Allstream spokesman Michael Bouliane.
 
"There has been no increase to pay phone rates in Manitoba since 1983, and over that period, reduced demand due to changing technology and increased operating costs have combined to threaten the viability of our pay phone business," he said.
 
"Increasing the charge for the use of the pay phone is the best way we can ensure the long-term viability of the public pay phone telephone service."

'Rate shock'

The increase was greeted with dismay by some, including advocates for seniors and the poor.
 
Lori Hunter, head of the Manitoba Society of Seniors, told the CRTC it shouldn't allow such a dramatic increase.
 
"Had they been applying on increasing it bit by bit, you know, a nickel over the last five years, that's one thing," she said. "But when you go from 25 cents to 50 cents, that's what we call rate shock."
 
Hunter said the new rates will present a hardship for some people on fixed incomes.
 
"When you're poor, it affects every aspect of your life, so for example, you can't get a land line unless you have an address," she said.  "If you're homeless, you can't get a phone, so public phones are your only way of communicating with people [by phone]."
 
The CRTC in late April said it was creating new pricing rules for Bell Canada, Telus, SaskTel, MTS Allstream and Bell Aliant. Under the new plan, companies are allowed to raise pay phone service fees to 50 cents and increase prices for local phone services in rural areas.

Most pay phones will be switched over to the new rates on Monday; a few use older technology and will have to be changed manually, a process that could take a bit longer, Bouliane said.

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