OTTAWA – The CRTC has turned down a request by Northwestel to review and vary an earlier decision detailing costing assumptions that impact the rates that the company can charge for its fibre backbone service known as Wholesale Connect.
Wholesale Connect provides for the transport of telecommunications traffic across communities served by Northwestel’s fibre or high-capacity microwave radio transport links. The service, available at different bandwidth levels in 30 communities in the company’s operating territory, allows competitors to connect their points of presence in those communities for the purpose of providing telecommunications services to their own end-users.
In November 2016, the Commission undertook a review of Northwestel’s fibre backbone service rates in an effort designed to spur telecom competition in the Western Arctic, a move that was cheered by competitor SSi Micro who alleged that Northwestel’s wholesale terrestrial backbone monopoly allowed it to charge competitors wholesale rates that are up to 30 times higher than in Southern Canada, and several times higher than Northwestel’s own retail Internet pricing.
In that review (Telecom Decision 2016-443), Northwestel was directed to file updated rates, and the cost studies justifying them, by January 9, 2017. In an application dated February 6, 2017, Northwestel asked the Regulator review and vary certain determinations set out in the review, but the CRTC quashed that application on Thursday after finding that Northwestel had not demonstrated that there is substantial doubt as to its correctness.
