OTTAWA
The Canadian Radio-television and Telecommunications Commission ordered Northwestel to cut residential rates for internet services by 10 to 30 per cent last week.

"Although we recognize the exceptional situation that exists in Northwestel’s territory, we must not let these challenges hinder the development and affordability of telecommunications services in the North," CRTC chairman Jean-Pierre Blais stated in a news release.

Clients of Northwestel could see a significant reduction applied to their monthly bills by May 4 the CRTC said.

Northwestel will be required to reduce residential rates for low-speed internet connections, DSL Internet Lite and DSL Internet 2 by 10 per cent. The DSL Internet 5 and DSL Internet 15 services will be required to come down by 30 per cent.

Northwestel is not permitted to raise residential rates until the end of 2017 at the earliest, and the CRTC will need to approve such a move.

Northwestel will no longer be allowed to charge additional fees to customers who subscribe to Internet services not bundled with telephone service. This change will take effect before May 4.

The CRTC will also limit additional charges for residential customers who go over their monthly usage allowance included in their data plans. As of February 2016, Northwestel will be required to lower its additional usage charge by at least $0.50 per gigabyte.

These changes are a result of the CRTC’s 2013 finding that there was limited competition in the market for retail internet services.

"Access to reasonably priced Internet services plays an essential role in the North’s economic and social development," stated Blais. "With this decision, we are reducing the gap between what consumers pay for Internet services in the Northern and southern parts of Canada."

The CRTC is embarking on a "major proceeding" in the coming months to review basic telecommunication services in Canada.

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