IQALUIT - Web surfers in Iqaluit with Internet packages from Northwestel are going to have to pay $20 a month more for their 10 gigabytes of usage. In return they get a promise of increased speeed.

Iqaluit Centennial Library patrons Ooloosie Shoo, front, and Maryann Ningeok browse the Internet. Northwestel Internet customers in the city now must pay $20 more for 10 gigabytes a month, but the company says the amount of people who have opted for the new plan indicates they don't mind paying the new fee. - Gabe Zarate/NNSL photo

The Whitehorse-based Internet provider has introduced three new Internet options for users in Iqaluit to replace what was once the sole package available, a $79.95-a-month plan that provided customers 10 gigabytes of bandwidth a month.

The new packages, each of varying and improved speeds compared to the previous offering, took effect July 1, though Northwestel doesn't expect the most expensive of the new packages, which now offers 10 gigabytes a month for $99.95 a month, to begin performing at full speed until Wednesday.

"The catalyst to this is we've being doing work to upgrade our equipment over there to improve speeds and the reliability of the service," said Anne Kennedy, director of public affairs for Northwestel. "Customers (have been) coming to us wanting different packaging (and offering) feedback on what they would be willing to pay and for what level and types of services."

Northwestel sent letters dated May 20 to all Iqaluit customers to inform them about the changes, she added.

Customers who have not yet informed the company which new package they want have automatically been moved to the second-tier package, which comes with a higher speed but also charges $79.95 for only five gigabytes a month - half the bandwidth of the old plan. For every extra gig of download used above the cap, the customer must pay an additional $20.

But from what Kennedy has seen, many customers didn't mind paying more for the same 10-gig limit.

"We definitely had people who said, 'Yep. That works for me. I'm happy to pay the extra $20 a month to get the increased speed and keep the gig cap that works for me,'" she said.

She added that most people who opted for the higher plan are people who are well aware of how quickly gigabytes can get used up in an age when video ads automatically pop up on many websites.

"We've done a fair bit of promotion on this to let people know we've made the changes," she said. "What we've found is that the people who had made the conscious switch to the (top package) are the high bandwidth (users)."

The lowest-tier package, billed at $69.95 a month, offers two gigs a month.

Matthew Boyd, a casual Internet user who mostly sends out emails and plays the occasional online game, said the increased price tag for 10 gigs doesn't really affect him. But as for others, the changes may be a harder pill to swallow.

"The hardcore gamer, the hardcore downloaders - they're probably quite upset over it," he said. "With what you paid for a couple months ago, you're only getting half now."