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Canadian wireless companies plan billing shift

TORONTO—Wireless carriers Telus Mobility and Rogers Wireless Communications plan to charge new cell-phone users by the minute instead of by the second. This change in billing is expected to help boost revenue.

Beginning 1 July, Telus Mobility will switch to per-minute billing for all new subscribers who sign up for its various rate plans. With per-minute billing, Telus Mobility expects to increase the average revenue per user (ARPU) by less than 10 percent. But the change will not affect its existing 2.7 million wireless subscribers who will continue to be billed by the second.

Meanwhile, Rogers AT&T Wireless, which has 3.4 million customers, said it intends to follow suit but has not yet decided when to start.

The billing shift is an attempt by the two carriers to stop declining ARPUs. According to IDC Canada, ARPU has dropped to C$47.30 (US$30.85) in 2001 for Canadian wireless carriers from C$78 (US$50.87) in 1995.

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