MAY 25- B87
BRITISH COLUMBIA TELEPHONE COMPANY

8O0-6TH STREET. NEW WESTMINSTER, B.C, V3L 5B4 TELEPHONE: 432-9455 AREA CODE 604

PLEASE ADORESS YOUR REPLY
TO THE UNDERSIGNED May 1, 1987

‘Mr. R. A. Freeman

City Clerk

The Corporation of the
City of Port Coquitlam

2272 McAllister Avenue

Port Coquitlam, B.C.

V3C 248

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Dear Mr. Freeman:

Thank you for your letter of April 24, 1987, written on
behalf of the Municipal Council.

The recent publicity generated by the news media surrounding
the issue of local measured service (LMS) requires some major
clarification if it is to be considered factual.

B.C. Tel has no plans at this time to introduce the local
measured service: concept as a way of charging for local
telephone service.

However, B.C. Tel's 1986 five-year capital plan, recently
reviewed with the federal regulator (Canadian Radio-television
and Telecommunications Commission), does include a reference
to LMS in the years 1989 and 1991. This reference is included
as strictly an acknowledgement of the possibility that we may
initiate primary market research trials to explore customer
reaction to LMS at that time. We have not applied to, and
currently have no approval from, our regulator to implement
those market trials.

LMS is not a means of creating a substantial increase in
profits. It is an alternative to the flat rate pricing
structure currently in effect in the majority of telephone
operating territories. LMS is potentially a more equitable
way of distributing the costs among those subscribers who
use the service. Its ultimate intention is to make more
efficient use of the telephone network.

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