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Internet critical to Nunavut, CRTC told at public hearings
Broadband should be considered a basic service, say representatives

Elaine Anselmi
Northern News Services
Monday, April 25, 2016

NUNAVUT
Over two weeks in April, the Canadian Radio-television and Telecommunications Commission heard an onslaught of comments on broadband access across the country.

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Representatives from one of three Internet providers in Nunavut, SSi Micro, whose Cambridge Bay tower is pictured here, spoke at the CRTC hearing on broadband access in mid-April. - photo courtesy of SSi Micro

The question that the hearings seek to answer - is broadband a basic service that all Canadians deserve equal access to? - drew responses with heavy criticism from Nunavut voices.

"Telecommunications infrastructure is absolutely critical for the future of Canada's North for a number of reasons -- for economic development, for education, health care delivery, civic participation, public safely," stated Oana Spinu, executive director of the Nunavut Broadband Development Corporation (NBDC), at the hearing on April 12.

While rural communities across the country experience limited telecommunications services, Spinu said the satellite-served communities of which are predominantly indigenous in the North are at a particular disadvantage.

Served by three providers, Northwestel, Qiniq - through SSi Micro - and Xplornet,

Spinu deemed telecommunications in the territory an example of market failure.

With providers competing for subsidies, rather than customers, Spinu argued on behalf of the development corporation that financial interests of companies must be balanced with public interest.

"Canada has made a national commitment under Section 7 of the Telecommunications Act to ensure that high quality, reliable, and affordable telecommunication services are, 'accessible to Canadians in both urban and rural areas in all regions of Canada.'" Spinu said.

"The problem is that the current interpretation of telecommunication services only includes landline telephone and dial-up Internet access. Does a $20-million annual subsidy for landline voice and dial-up Internet access make sense in 2016? No. Should broadband Internet access be included in the definition of basic telecommunications services and supported accordingly? Yes."

The Northern difference

In Nunavut, Spinu argued that larger than average households are sharing Internet services with lower than average caps. As well, she pointed out that with an already-high cost of living, where some people struggle to buy food, additional Internet costs are a particular problem with major socio-economic impacts.

CRTC commissioner Peter Menzies pointed out that "the recent federal budget targeted $8.4 billion in spending for aboriginal and Northern investments, including $255 million for community infrastructure, of which broadband is a part."

But despite such investments, Spinu pointed out that with a massive infrastructure deficit including housing and water treatment, there is little room to prioritize broadband.

"I think putting broadband in the same group as those other core municipal needs doesn't really do any service to broadband because people are not going to give up clean drinking water so they have better Internet access," she said.

Provider speaks up

Also at the hearing, SSi Micro founder and CEO Jeff Philipp said that a one-size-fits-all policy would not work when it comes to the vastly different environment in the North. Speed - which had been a significant part of the CRTC discussions - he said, is immaterial when factors such as cost, pricing and backbone infrastructure remain unsteady.

"Without further policy changes and inclusion of broadband as part of the basic service objective, remote areas in Canada will suffer," Philipp said.

SSi offers the only broadband options in some Nunavut communities and has invested heavily in building out infrastructure.

The federal government also invested $35 million through SSi in the Connecting Canadians program to reduce broadband costs for consumers in Nunavut. SSi representatives argued that the remainder of the multimillion-dollar investment comes from the company.

Funding for backbone and gateway infrastructure would allow local providers to compete and deliver the affordable services that are a basic need, stated Dean Proctor, SSi chief development officer. He proposed a CRTC Backbone Assistance Program developed by SSi.

"Those living in remote and outlying communities and the businesses, governments, and other organizations that serve these communities must have access to affordable communication services and competitive choice," Proctor said.

"Quality broadband must become a key component of the basic service objective. The commission has the means and the commission has the ability to enact substantial reform. Doing so successfully will allow Canada to be a global showcase, where broadband overcomes the barriers of distance and where all regions of the country, no matter how remote, benefit from and participate fully in the digital economy."

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