YELLOWKNIFE – Northern broadband service provider SSi says the CRTC’s decision to “remedy damage” caused by Northwestel’s practice of overcharging competitors for wholesale terrestrial backbone services will restore telecom competition in the north.
SSi claimed that Northwestel, the only supplier of such services in the North, was charging competitors wholesale rates that were thirteen to thirty times higher than in the south, and several times higher than its own retail pricing.
In January of 2012 the CRTC directed Northwestel to file cost studies to justify its backbone connectivity rates. Northwestel filed Tariff Notice 883A with proposed Wholesale Connect rates in May of 2012, and after an extensive review by the Commission, final rates for the service were approved on Monday. The final rates reflect significant reductions including the proposed monthly backbone, one-time service and “Class of Service” charges.
“We truly appreciate how far the Commission has gone to correct the wholesale rates charged by Northwestel,” said Jeff Philipp, Founder and CEO of SSi, “While we regret the loss of Northern competitors who did not survive to see this day, we also want to profoundly thank those dedicated customers and partners who have been so supportive in the fight to hold Northwestel accountable. Ultimately it is Northern consumers who will benefit with even more attractive alternatives to Northwestel.”
“We are working to complete our new Wholesale Connect arrangements with Northwestel,” said Dean Proctor, Chief Development Officer of SSi. “The rate certainty today’s decision provides is very helpful as we move forward. While we would like to see greater assurances on quality of service, and revisions to the markups Northwestel is allowed to charge, those are matters we hope to discuss as part of the CRTC’s holistic review currently underway into the communications needs of the North.”
