1. What is the Lower Mainland local calling expansion?

It's a proposal that would allow BC TEL customers to call among 21 exchanges
throughout the Lower Mainland—from Bowen Island to Abbotsford and Mission—
without incurring long distance charges.

The new rates would be based on a four-zone structure similar to the transit
system, where the cost is somewhat higher in the zones further from the core. The
core zone would include Vancouver, New Westininster and Burnaby.

The rates and zones will be announced to the public on December 7.

2. Why is 8€ TEL propesing expanded local calling in the lower Mainland?

Customers are asking for a simpler, more consistent and equitable method of
charging for local calling. Since 1990, BC TEL has worked in conjunction with a task
force representing the Chambers of Commerce and some municipalities to come up
with a proposal to address community concerns,

As you are aware, demographics in the region are changing drarnatically, as many
people seek affordable housing in communities outside Vancouver centre. Studies
conducted for the Greater Vancouver Regional District project that greater
Vancouver's population will grow from 1.7 million to nearly three million by 2021.
This rapid pace of growth and development in the Lower Mainland requires a
coordinated, regional approach to economic development. A supporting regional
infrastructure——-of which telecommunications is a key partis essential.

In BC TEL's view, this proposal would provide such an infrastructure, better
serving customer needs-—-both on an individual and community level. It not only
responds to customers current calling patterns, it anticipates changing
telecommunications needs as our region expands.

3. What are some of the benefits to British Columbians residing in the Lower
Mainland?

Lower Mainland customers will benefit directly in several ways:

@ They'll be able to call throughout the Lower Mainland for a fixed monthly rate.

® As the population shifts to oudying areas, people will be better able to maintain
contact with family, friends and work.

® They'll have greater access to goods and services.

The proposal offers an easy to understand, fairer system.

But there are also benefits to the entire region that will affect customers indirectly:
The proposal supports the GVRD's livable region strategy, which calls on
industry and government to help serve a changing population and maintain a
healthy environment in the region.

@ The proposal would help lower the overall cost of telecommunications for many
businesses outside Vancouver, stimulating development and jobs in those
communities.

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