JUN 9 anne

Cc

BRITISH COLUMBIA TELEPHONE COMPANY

768 SEYMOUR STREET, VANCOUVER, CANADA VOB3K9 TELEPHONE: 683-5511 AREA CODE 604
TWX NUMBER 610-922-6044

PLEASE ADDRESS ‘YOUR REPLY :
TO THE UNDERSIGNED. May 22, 1975

Mr. R.A. Freeman
:-City Clerk
-The Corporation of the
.. (City of Port Coquitlam
2272 McAllister Avenue
“ot Port Coquitlam, B.C. V3C ZA8

Dear Mr. Freeman:

~This is to acknowledge your letter dated April 21, 1975 to the
Canadian Transport Commission, wherein you advise that your
“Council'has proposed that all telephone rates throughout the
’Greater Vancouver Regional District be equalized.

Firstly we should point out that provision of toll free calling
almost always represents substantial costs, and those costs

“:: must be recovered, The rate restructuring that was approved
by the Canadian Transport Commission in the recent decision
gives better recognition to those costs, and how they increase
in proportion to distance, and assigns those costs to those
customers who benefit from the extended free calling. You will
appreciate that costs associated with your proposal to extend free
calling over the entire GVRD would be substantial indeed.

_ The second consideration is whether the additional benefit
received by subscribers is in equal proportion to the extra cost,
and in sufficient extent to be supported by the majority.

The present free calling arrangements in the lower mainiand
recognize that most of the calling volume of subscribers in each
outlying residential community is to or from the urban core or
to adjacent communities. As stated, this covers the customary
calling pattern of most subscribers.