XN000022-1990-12-05 — Page 3

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THE

"THE PROPOSED INCREASE IN STANDARD TELEPHONE IS FROM $6 TO $7.

MONTHLY RENTAL CHARGE FOR A

"LEASED CIRCUIT CHARGES WOULD BE INCREASED BY BETWEEN 10 PER CENT AND 16.7 PER CENT DEPENDING ON THE CATEGORY.

"HOWEVER, THE STANDARD CONNECTION CHARGE OF $600 WOULD REMAIN UNCHANGED, AS WOULD A LARGE NUMBER OF OTHER MISCELLANEOUS CHARGES, SUCH AS THOSE FOR SPECIAL EQUIPMENT, SHE ADDED.

SUBMITTED AN OF 11 PER

MRS CHAN SAID IN SEPTEMBER 1990, THE COMPANY HAD APPLICATION TO INCREASE ITS CHARGES BY AN OVERALL AVERAGE CENT WHICH WAS ABOUT THREE PER CENT LESS THAN THE ACCUMULATED INFLATION RATE SINCE THE LAST INCREASE IN JUNE 1989 AND WAS CLOSE TO THE ANNUAL RATE OF INFLATION.

IN MOVING THE RESOLUTION FOR THE LAST INCREASE, THE ACTING FINANCIAL SECRETARY HAD INFORMED MEMBERS, BASED ON PROJECTIONS THEN AVAILABLE, THAT THERE WAS UNLIKELY TO BE ANY REQUIREMENT FOR A FURTHER ROUND OF INCREASES UNTIL 1991, MRS CHAN SAID.

"THE MOTION BEFORE THIS COUNCIL TODAY WOULD IMPLEMENT FURTHER

1991.

INCREASES IN TELEPHONE CHARGES FROM JANUARY 1,

"WHILE THIS WOULD ACCORD WITH THE LETTER OF THE FORECAST GIVEN TO THIS COUNCIL IN 1989, THE INCREASES ARE NEVERTHELESS A FEW MONTHS EARLIER THAN EXPECTED, SHE NOTED.

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MRS CHAN SAID THIS WAS DUE TO LOWER THAN EXPECTED GROWTH IN REVENUE FROM INTERNATIONAL TELEPHONE SERVICES AND LEASED CIRCUITS. AND HIGHER COSTS THAN WERE FORECAST BY THE COMPANY IN 1989.

"THE APPLICATION HAS BEEN THOROUGHLY EXAMINED AND THE ITEMS IN RESOLUTION NOW BEFORE THIS COUNCIL ARE CONSIDERED TO BE JUSTIFIED," SHE ADDED.

THE

IN ADDITION TO RAISING CHARGES FOR EXISTING SERVICES, MRS CHAN SAID THE RESOLUTION WOULD ADD TWO NEW MINOR ITEMS TO THE SCHEDULE.

THESE WERE A CHARGE OF $275 FOR CONVERSION OF AN ALREADY INSTALLED EXCHANGE LINE TO A CENTREX LINE, INSTEAD OF THE FULL CHARGE OF UP TO $600 FOR CONNECTION OF A CENTREX LINE; AND A 10 PER CENT SURCHARGE FOR INTERNATIONAL TELEPHONE CALLS MADE FROM PUBLIC AND PRIVATE PAYPHONES.

"THIS SURCHARGE IS JUSTIFIED ON THE BASIS OF THE ADMINISTRATIVE COST INCURRED FOR INTERNATIONAL CALLS PAYPHONES.

"THE RESOLUTION BEFORE THIS COUNCIL PROPOSES THAT NEW CHARGES AND THE INCREASES IN EXISTING CHARGES SHOULD FROM JANUARY 1, 1991," SHE SAID.

ADDITIONAL

MADE FROM

THESE TWO TAKE EFFECT

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