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NUNAVUT
The proponent of an intercontinental undersea cable network that would bring fibre bandwidth to some Northern communities for the first time, is seeking buy-in from Canadian carriers to execute the project.

Arctic Fibre Inc. president Doug Cunningham. - photo courtesy of Arctic Fibre Inc.

Toronto-based Arctic Fibre Inc. reportedly has international carriers on board for the proposed submarine cable system joining Northern Asia and Japan to the United States, Canada and Northern Europe, using a 15,600 km route through Canada's Northwest Passage.

"We have very significant buy in from major Chinese, Korean, Japanese, American, and British carriers at this point in time," Arctic Fibre president Doug Cunningham said, adding the project is interdependent on Canadian demand. "It's the combination of the two that makes this project feasible," Cunningham said. "It doesn't work without the international carriers, and it doesn't work without the domestic carriers."

Arctic Fibre has engaged facilities-based telecommunications consulting and service company AP Telecom to pre-sell the network and has "a very, very significant number of carriers on board," Cunningham said.

The network, slated to start with the construction of a link between Newfoundland and Iqaluit for the third quarter of 2013, will significantly increase bandwidth and capacity currently accessible in satellite-dependent communities.

"It's still the 'world wide wait' for 40 per cent of people throughout the (Northwest Territories) and 73 per cent of households throughout Nunavut," Cunningham said. "We're going to be putting facilities in there that have the capacity that would allow us to transmit someplace in the neighbourhood of 40 million simultaneous phone calls at one time.

"We will eliminate that world wide wait."

'Bold assertions'

Paul Bush, vice president of business development for satellite services operator Telesat, called Cunningham's assertions "bold."

"The idea of a fibre build in the Arctic really is interesting but I think the economics of it will really be the one that rules the day," Bush said. "And I think from an economic standpoint, there's really not a lot of logic to it."

Intercontinental demand is what will mostly finance the plan, Cunningham said, noting the demand for international traffic grew in excess of 40 per cent last year.

Sixty per cent of the capital cost for the $640 million network will be allocated to people outside Canada, he added, with the remaining $260 million to $270 million in Canadian investment from carriers, armed forces, and government arms including the federal government and the Government of Nunavut.

The system has a life-span of 20 years or more, he added.

"So when you take $270 million and divide it by 20, you're coming down to numbers that are far, far cheaper than what governments are spending on bandwidth using Telesat," Cunningham said.

The company has had discussions, but no formal sit-downs with NorthwesTel, SSI Micro, nor Qiniq, and plans to continue dialogue over the next few weeks, Cunningham said.

Dean Proctor, chief development officer for the SSI Group of Companies, said SSI "is always looking for ways to improve service and reduce costs for consumers," but the company is "not privy" to the business planning for Arctic Fibre, or the costs and timelines it proposes.

NorthwesTel Inc. spokesperson Emily Younker said the company is "aware" of the project, but it is too early for NorthwesTel to comment on it.

Following the initial link to Iqaluit, construction of the remaining links is targeted to be undertaken in the third quarter of 2014.

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