BC TEL

» BC TEL’s last general rate increase, amounting to three percent, was in 1985.

» By comparison, since 1985 the cost of auto insurance has increased by over 60 percent;
electricity has gone up 18 percent, transit kas increased by nearly 50 percent, and cable has
gone up by more than 80 percent.

> For $1 in revenue from local service, BC TEL actually spends $1.89 to provide that
service.

» BC TEL has lowered long distance rates by nearly 40 percent since 1987.

» BC TEL believes that if Canadian business is to be competitive in a global market place, a
business’ costs -- including telecommunications costs -- must be in line with its competitors
world-wide.

» BC TEL’s goal is to continue to lower long distance prices to be in line with U.S. rates by
1996.

» The interim rate increases proposed were designed to improve the company’s financial
ratios enough to retain investor confidence, while controlling the impact on customers.

» Tax changes since 1990 impacted BC TEL by ©
$12.6 million in 1991
$37.3 million in 1992
$43.6 million in 1993 (est.)
$42.9 million in 1994 (est.)

» BC TEL has been cutting costs. Through attrition, reorganization, flexible work options and
early retirement packages, BC TEL downsized staff by 5.4 percent in 1992, and expects to
downsize by a further 2 peizent in 1993.

» A key productivity indicator, employees per 1,000 customer access lines, has improved
from 8.5 in 1988 to 6.8 in 1992, and is forecast to be 6.3 in 1993.

» Through consolidation of operations and organizational changes, and strategic alliances, BC
TEL has achieved productivity improvements.

» Without a local rate increase, BC TEL’s capital program budget for 1993, an estimated
$410 million, will need to be reviewed.