Subject: Bell Canada to File Pay-per-Local-Call Rates
Date: Mon May 22 02:09:36 1995

[from Bell News, 15 May 95 - this is Bell Canada's version of events]

Bell to file usage-based pricing for business local calling.

Bell will move one step closer to a pay-as-you-use pricing structure
for business local calling.

On May 31, we will ask the CRTC to approve prices for this new
structure, which would see business customers pay a reduced, flat
monthly price to access the local network, plus per-minute usage
charges, based on distance, for certain outgoing calls, starting July
1, 1997.

Pay-per-use continues our move toward cost-based pricing. The need for
price restructuring became clear following a September 1994 decision
by the CRTC to introduce competition to the local calling environment.
In April of this year, we filed a plan to restructure prices for
*access* to the local network so that they will align more closely
with costs. Pay-per-use will better reflect the costs of *usage* -
that is, the number of calls customers actually make.

Usage-sensitive pricing emphasizes fairness for business customers
because they will only pay for the local calls they make. Customers
who make many calls will pay more, while those who make fewer calls
will pay less. The proposed pricing will not generate additional
revenues for the company.

Pay-per-use will also provide a platform for Bell's vision of local
services, which would see customers enjoy greater choice and flexibility 
in the kinds of services they receive and the way they pay for them.

Although usage pricing for business is the norm in many other
countries, such as the U.S. and UK., it will represent a major change
for our customers. As a result, it will be critical that Bell
employees provide on-going support in responding to customer questions
and concerns throughout the transition to usage pricing.

"Employees in Sales, the Business Offices, and many other areas of
the company will play a key role in the transition to this new
way of pricing," says Raymond Provencher, director, Local Marketing.

"We  will have to work closely with our business customers, and
provide them with the tools and solutions to manage the change."

Look for in-depth coverage on this filing in upcoming issues of
Bell News.

                                -------

[sidebar]

What business will NOT pay for:

* incoming calls;
* long distance calls;
* calls made within customer's system;
* calls to 911;
* directory assistance (411);
* Bell operator (0);
* Bell repair (611);
* relay services for the hearing impaired (711).

What business will pay for:

* all other outbound local calls.


Fidonet : Dave Leibold 1:250/730
Internet: Dave.Leibold@superctl.tor250.org


[TELECOM Digest Editor's Note: I think they are making a big mistake by
not requiring businesses to pay for calls to Directory Assistance. Many
large businesses are big abusers of this service. There will usually be
hundreds of copies of the telephone directory delivered to a large corp-
oration each year, yet very few employees ever seem to have a copy at
their desk; it is always easier to dial 411. Then also, businesses which
rely on very accurate, up-to-date records of how to reach their customers
such as credit services, banks, etc *never* use the paper directory,
instead preferring the more accurate operator records. One reason all of
us here in Ameritech territory have paid for Directory Assistance calls
for many years now was because of the way businesses abused it.   PAT]

