Residents of Marsh Lake and Whitehorse will see their phone bills rise after April 21, but they'll no longer be paying long distance rates to call each other's area.

This morning, Northwestel Inc. announced the Canadian Radio-television and Telecommunications Commission (CRTC) has approved the proposal for local calling rates between the Marsh Lake exchange and Whitehorse.

It will mean, however, an increase of $6.50 per month on phone bills for Marsh Lakers and a 48-cent increase on Whitehorse bills each month.

'It's definitely taken quite a while,' Anne Kennedy, Northwestel's spokeswoman, said in an interview this morning.

In 2003, the Marsh Lake local advisory council asked Northwestel to permit local calling between the area and Whitehorse. Under CRTC regulation, extended area service has to be requested from another party such as the advisory council. Northwestel cannot initiate the service.

After the proposal was made, Northwestel had to determine the distance between the communities, which is 64.4 kilometres (40 miles). There's at least 60 per cent of customers from the requesting exchange calling the other area at least once a month.

When that was determined, Northwestel had to figure out what it would charge for the flat rate in lieu of the long distance income from the two communities.

'That is the rationale (for the increases),' Kennedy explained.

Northwestel won't release how much revenue it brings in per month between the two communities in long distance rates.

Though the company was required to provide those details to the CRTC in the application, it was provided in confidence because it's competitive information, Kennedy said. While there are no other long distance providers in the territory, other companies are permitted to compete in the northern market.

The CRTC agreed to Northwestel's proposal that each business and residence in Marsh Lake pay an additional $6.50 per month for the extended service, while Whitehorse residents would pay an extra 48 cents per month.

From there, Northwestel was required by the CRTC to survey Marsh Lake customers on the proposal.

When the survey ended in January 2004, of the 179 respondents (67 per cent of Marsh Lake customers), a total of 139 (78 per cent) favoured paying the extra $6.50 per month for unlimited calling to Whitehorse.

Under the CRTC regulations, Northwestel wasn't required to survey Whitehorse residents because the fee increase would be under $1.

Whitehorse city council, however, took issue with the matter. It voted 4-2 in favour of asking the CRTC to make it a requirement that Whitehorse residents be surveyed on the matter as well.

That request was refused.

Coun. Doug Graham brought forward the motion for the request to the CRTC. He argued that though it would only be a 48-cent increase, he'd heard from residents in the city living on a fixed income that they didn't want their bills raised, even by less than $1.

Although long distance rates would fall, many of those who don't want the increase don't make many long distance calls, he said at the time.

This morning, Graham said he doesn't believe Whitehorse residents, including those on a fixed income, should be forced to pay for businesses in Marsh Lake.

Most residents of the community outside the city boundaries work in Whitehorse and are already in town on a daily basis, he argued. So, it's mainly the businesses in Marsh Lake that are being subsidized with the 48-cent increase, Graham said.

And while it may only be a 48-cent boost this time, Graham said it may eventually increase if other communities such as Carcross look for extended service.

If that happened, the increase in a Whitehorse resident's monthly phone bill could be 55 or 60 cents, still not enough to require a survey. However, added with the 48 cents extra for Marsh Lake or whatever increase may come with more extended service applications, it would be over a $1-hike.

'I bet you it's coming fairly quickly,' Graham said.

Kennedy said there have been no other communities requesting extended service. Whether the phone company surveys the larger exchange is up to the CRTC, she added.

'Our role is clearly defined.'

It's also up to the CRTC to take concerns like those brought up by city council into consideration when approving the change, Kennedy said.

With the modified Whitehorse-Marsh Lake service expected to be implemented by April 21, Northwestel will have time to reprogram the exchanges and payphones, implement billing changes and notify customers.

This marks the first extended area service to be implemented in Northwestel's area in the North, though there are a number of similar situations throughout the country.