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NORTHWEST TERRITORIES
NorthwesTel's plan to invest $273 million in telecommunications across Northern Canada hinges largely on the Canadian Radio-television Telecommunications Commission's approval of Bell's use of $40 million in tangible benefits.

Smartphones, such as those perused here by Alexandra Letzing, would be supported by the networks in all Northern communities if NorthwesTel's proposed modernization plan comes to fruition. - NNSL file photo

Last week, two files pertaining to NorthwesTel's proposed investment, the Bell Canada Enterprises Astral Media tangible benefits package and the NorthwesTel modernization plan, were made public and are now open to intervener comments through the CRTC.

The tangible benefits package arises from BCE's bid to purchase the broadcast entity, Astral Media. As part of that transaction, BCE is required to invest a certain percentage of the transaction value back into the world of broadcasting.

The total tangible benefits package they're proposing amounts to $200.1 million, and $40 million of that package may help fund an overhaul of how Internet and cellular phone services are provided in the North.

In December 2011, NorthwesTel was required by the CRTC to submit a modernization plan within six months that would detail how the company plans to update what the CRTC described as an aging and often unreliable telecommunications network in such a way that it would be comparable to networks in southern Canada.

The resulting modernization plan NorthwesTel submitted on July 3 describes a $273 million investment in Northern telecommunications that would provide 96 communities in the Canadian North with access to improved Internet and cellphone services on a 3G network over the course of five years.

"We really left it up to them to determine what they felt was appropriate service for the North," said John Macri, director of telecommunications policy for the CRTC. "Of course, the file is in front of us and now we're going to have a look and parties are going to have a chance to comment on whether they think that's an appropriate level of service."

Macri said NorthwesTel is funding the upgrades on its own and has not submitted a request for a rate increase.

Paul Flaherty, president and CEO of NorthwesTel, said the modernization plan would develop a network comparable to southern Canadian cities and would surpass some networks in southern Canadian rural communities.

As a result, NorthwesTel has taken the position that the plan goes beyond the expectations of the CRTC-mandated modernization plan and is eligible for $40 million of the BCE tangible benefit package for connecting modern Internet-based broadcast media with Northerners.

"At the end of the day ... this is going to give Northerners the opportunity to access media content, to upload media content and so we think that it contributes to the whole broadcast system in the country," he said. "It's going to create a platform for broadcasters to meet more people but also it's an opportunity to get local content and upload it, too."

Both the BCE tangible benefits package and the NorthwesTel modernization plan have to be approved by the CRTC in order for NorthwesTel's plan to move ahead as planned.

Flaherty said small communities do not generate enough revenue to justify the capital cost of upgrading their systems to the extent the plan proposes. If the CRTC denies its suggested use of the $40 million, the modernization plan would be scaled back and would most likely mean small communities would lose out, he said.

Macri said any member of the public, whether they be individuals, organizations or government groups, are welcome to make a submission as an intervener on either file before the commission.

Mike Aumond, deputy minister of the GNWT Department of Finance, said the government does plan to take part in the process as an intervener.

"We're currently reviewing the plans they submitted to the CRTC," he said. "We think it would be of substantial benefit to the North, though we do have some questions with respect to better understand how it may be financed."

Regardless of the tangible benefit debate, many residents in Northern communities have their fingers crossed for some significant improvements to their network.

Sean O'Rourke of Fort Simpson started a Facebook group called "Fort Simpson NorthwesTel Petition" after discussing network problems with his friend, Kele Antoine.

The group quickly generated a lot of local attention and echoed demands Flaherty said NorthwesTel has been hearing from communities across Northern Canada.

O'Rourke said there is one particular area of the town where poor cellphone reception is causing a lot of frustration.

"It's a really limited range for a lot of people," he said. "They can't use their cellphones at home and 3G is going to be pretty awesome for people who want iPhones and that kind of thing."

Antoine, manager of K&K Expediting, said the intermittent cellphone coverage means he often gets voice-mails and text messages days after they were sent, which has negative impacts both personally and professionally.

He said a 3G network would also allow him to utilize the capabilities of his smartphone without having to seek out limited wi-fi locations.

Fact file

tangiblebenefit requirements

* Proposed expenditures must add something to broadcast media

* The expenditures must provide something that couldn't be provided without the occurrence of the transaction

* The expenditures must predominately benefit third parties, such as independent producers of broadcast content.

Source: Canadian Radio-television Telecommunications Commission

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