Northwestel improvement plan approved
CRTC head pledges to hold telecom's 'feet to the fire' to ensure Northerners get better service
Laura Busch
Northern News Services
Published Friday, December 20, 2013
SOMBA K'E/YELLOWKNIFE
Northwestel must now file the service rates it charges its Internet customers with the Canadian Radio-television Telecommunications Commission, the regulator ruled Wednesday.
This ruling came as part of the CRTC's conditional approval of Northwestel's $233-million modernization plan that promises to provide reliable, affordable, high-quality telecommunications services to all Northern Canadians.
"We're going to hold (Northwestel's) feet to the fire to make sure they do implement (the plan)," said CRTC chairman Jean-Pierre Blais.
"Where Northwestel has shown that they have too much market power - and I'll give the example of retail Internet - we have decided to re-tariff those services."
As a monopoly telecommunications provider, there are limits on what Northwestel can charge for phone services. The recent decision maintains that price cap and extends it for another four years.
For the first time, the CRTC has decided to take a more active role in regulating the company's Internet and Ethernet Wide Area Network Services in communities served by on-the-ground infrastructure such as fibre optic cable, a decision made "in light of its findings that Northwestel has significant market power."
The CRTC gave Northwestel until Feb. 4, 2014 to file the information about its on-the-ground Internet services, and until March 6 to file any associated costs studies. Based on this information, the commission will determine how these services should be regulated.
The telecommunications company must now offer Internet services without requiring customers to also purchase phone packages, the commission also ruled.
The main purpose of Wednesday's ruling was to approve the $233-million modernization plan that will improve both Internet and cellphone services in the North - as well as bring 3G and 4G services to many communities that previously did not have smart phone connectivity.
The commission approved the plan, with some conditions, and said it will be watching the company closely to ensure it follows through on its promises to Northerners.
The plan was originally presented by Northwestel in July 2012 in response to a scathing report by the CRTC in 2011, which called on the company to improve its aging infrastructure, as well as offer better Internet and cellphone connectivity and more competitive prices to its customers.
"In a nutshell, if you asked me if we've reached a final destination to provide Northerners with (reliable, affordable, high-quality telecommunications services), I'd say 'no,' but I think we're well on the way to having put down a very important foundation to make sure residents and businesses in the North have the kind of telecommunications services one would expect in the second decade of the 21st century."
Conditions placed on the plan include a request that Northwestel re-examine its priorities in which improvements are provided first, said Blais. Since beginning its work to improve services earlier this year, Northwestel has focused on bringing 3G and 4G wireless services to communities.
Blais suggested other priorities be put "on the back burner" until Internet infrastructure is brought up to snuff.
"Particularly in today's economy, the key is broadband Internet and without that, Canadians in the North will not be able to benefit from these services," he said.
"We've had a really good start to the plan, but (now want to have) them go back and look at that $233 million and see if you can get a little bit more re-prioritization."
Northwestel declined to provide a detailed response to the CRTC ruling before it has a chance to go through the document in more detail.
"We're pleased the CRTC is supporting Northwestel's modernization plan. However, it's a complex decision and we'll need some time to review it in detail before commenting further," stated Emily Hoefs, corporate communications manager with Northwestel in an e-mail response.
