NWT/NUNAVUT
Customers are being asked to weigh in for and against Northwestel Inc. as hearings to review the Northern telecommunication giant's regulatory framework approach.
Northwestel Inc.'s regulatory framework and $233-million modernization plan will be reviewed by the Canadian Radio-television and Telecommunications Commission at a hearing starting next month in Inuvik. The modernization plan is the subject of a petition being circulated by the telecommunications company. - NNSL file photo
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The Canadian Radio-television and Telecommunications Commission (CRTC) is scheduled to begin hearings in Inuvik on June 17.
Northwestel's $233-million modernization plan and possible markups to the prices the company can charge for services to its competitors are among the matters that will be reviewed at the hearing.
The commission ordered Northwestel to provide a plan detailing how it will modernize what the CRTC described as an aging and often unreliable telecommunications network, following a hearing in 2011.
The resulting modernization plan submitted by Northwestel will provide next generation wireless service to 99 per cent of the residents in the North and upgrade Internet speeds, said Paul Flaherty, president and CEO of Northwestel.
The company is garnering customer support for the plan through an online petition and promotions at trade shows across the North.
"We put forward a modernization plan that's going to invest $233 million in Northern Canada. It's the largest investment that we've made and the big thing is it's going to improve Internet speeds and wireless networks as well, particularly in the Northwest Territories. These are the services (customers) keep asking for," said Flaherty.
The reason why the petition is important is because there is a risk that if customers do not show support for the plan, the CRTC will ask the company to invest in areas such as calling features that customers have not said are priorities, Flaherty said.
"They're really looking for faster Internet and next generation wireless services. You hear often people want to be more on par with what's available in the south and these investments are going to allow that to occur," Flaherty said. "From a customer perspective, we think it's what customers need and want and we're looking for them to show their support for this plan as we go forward."
About 800 people had signed Northwestel's petition by May 9.
Yellowknife-based Internet service provider SSI Micro also began rallying customer support this month, against the appeal by Northwestel -- the owner of all fibre and microwave connectivity to the south -- to increase rates it can charge competitors for its backbone service, called Wholesale Connect Service.
SSI is also seeking support to establish customer subsidies for broadband services in the North that are portable to the customer's service provider of choice and for access to public funding for new communications infrastructure projects in the North to be made available to all operators.
"What's at stake really I think is whether you want more of the same, which is Northwestel and Northwestel only, or whether you want choice," said Dean Proctor, chief development officer at SSI. "And that means a variety of service providers, a variety of technologies, a variety of consumer packages, different price packages, and obviously new and innovative ways of going about delivering communications in the North. So it's pretty stark."
Proctor criticized Northwestel's modernization plan, saying the $233-million figure is not a firm budget because spending on the plan is based on projected revenues.
"This is a big hearing for the North. I do hope people are not blindly signing something," he said about the petition in support of the plan.
According to Northwestel spokesperson Eric Clement, the company has committed to $233 million for the modernization plan. The only thing that could possibly change would be the timeline for its implementation, he stated in an email to News/North.
"Northwestel is fully committed to modernizing the North's communications infrastructure based on current revenue projections and we stand by our current plan. If there are major changes that impact the company's ability to generate revenue in a competitive market, some investments may be delayed," stated Clement.
The proceedings are scheduled to begin June 17 in Inuvik and continue in Whitehorse on June 19.
Intervenors have until May 15 to submit comments to the CRTC and Northwestel regarding the review of rates.
