After holding the cost of a pay phone call at 25 cents for decades, the CRTC is allowing phone companies to boost it to 50 cents across the country.

The new charge can be implemented as early as June 1, the regulator said Monday. If people want to use a credit card or other "non-cash" method of payment, the charge could be as high as $1.

Bell Canada last raised the cost of a pay phone call in 1981.
(CBC)

The CRTC noted that this is the first increase in pay phone charges in many years. Bell Canada, for instance, hasn't raised its pay phone rates since 1981.

The regulator also announced it will allow the established phone companies to charge more for local phone service in rural areas, where the CRTC says customers generally pay rates that are below the phone company's costs.

"The new price cap regime allows large telephone companies to raise prices in these areas by the lesser of the annual rate of inflation or five per cent," a CRTC statement said.

In rural areas — where phone services are still regulated — the CRTC has also given phone companies permission to charge whatever they want for optional local services, such as call display and voicemail.  

The decision applies to Bell Canada, Telus, Bell Aliant, SaskTel, and MTS Allstream.