TORONTO – Some rural and remote communities with poor Internet connectivity are looking at setting up their own service for residents rather than wait for big carriers to come into their area. but the head of Cogeco’s cable operations has gently warned municipalities and utilities in Ontario and Quebec that the private sector has the money and expertise to do it better.
“We are convinced Internet service providers are better equipped and better positioned to develop these types of networks,” Ken Smithard, president of Cogeco Connexion, told the Canadian Telecom Summit on Monday.
In particular, he said, there are high operational costs in addition to the cost of building a network which municipalities may not be equipped to handle. Instead, he said the industry as a whole has to work together to be more flexible, cut red tape and costs as well as leverage government funding to close the rural-urban gap.
“As an industry collectively we need to remove and streamline barriers that will slow or limit our ability to extend networks, such things as permit process, make-ready costs and pole attachment costs… We need to be open to new approaches, joint programs – including joint and shared load costs, which will likely be required to reach some of these rural remote areas.”
In an interview Smithard said Cogeco has ongoing talks with many partners about serving outlying areas, “and there are some discussions and explorations being done around these entities perhaps seeking funding and building their own networks.”
But, he noted, many Canadian hydro utilities that built communications networks in the past have gotten out of the business. (Cogeco competes with municipal-owned Lakeland Networks in Bracebridge. Ont.)
“I think the challenge they face is building a network is one element … Operating it and sustaining it over time is often more complex than people estimate. So we’re best equipped to build it and maintain it over time.”
“It’s going to take co-ordination with government at all three levels.” – Ken Smithard, Cogeco Connexion
As for working more collaboratively to cut costs, he argued that “in order to meet these communities in a cost-affordable way and provide the levels of service the government is looking to its going to require co-operation with service providers, perhaps with joint builds. It’s going to take co-ordination with government at all three levels and the CRTC to potentially source funds from multiple sources from specific programs, and with utilities in terms of access to poles, access to building permits in an efficient and cost effective manner.”
In the interview he also praised Innovation, Science and Economic Development Minister Navdeep Singh Bains who, just before Smithard spoke, announced the government is asking the CRTC to reconsider its decision to exclude Wi-Fi based service providers from accessing cellular roaming services. If the Commission changes its stance it could open the door to more affordable wireless service, Bains said.
Cogeco offers Wi-Fi service to its broadband and cable customers in public areas such as downtowns, parks and areas so they can access the Internet with tablets, laptops and smartphones when away from home. If the CRTC changes its mind Cogeco might be able to offer a Wi-Fi-first type mobile solution and leverage roaming outside our footprint, Smithard said.
In urging the industry during his speech to work better together and hone processes to better serve rural areas Smithard said service providers don’t have to tear their firms apart. “We don’t need to re-invent the company but to adapt the company and our internal processes to meet the new challenge of serving rural communities. If we continue to follow the same practices and the same methodologies as today it’s inevitable we’ll have the same result — reaching these communities is not economically viable. So change is important …I know collectively as an industry we can rise to the challenge.”
Photo by Howard Solomon
