Cable / Telecom News

“Cheapest is not always best”


ONTARIO – While Ontario Connects has generally been welcomed by the industry, organizations that represent small, independent internet service providers have some concerns about how the province’s $4 billion plan to bring high-speed Internet access to the entire province by 2025 will unfold.

“We of course welcome the Ontario government’s substantial investment in extending broadband to everyone across the province,” said Jay Thomson, CEO of the Canadian Communication Systems Alliance (CCSA), in an email to Cartt.ca.

“We question, however, whether a reverse auction approach will generate the best return on the government’s investment. Cheapest is not always best, especially when considering the various cost factors involved in expanding rural broadband, such as geography and population density,” he continued.

Thomson also noted CCSA is “concerned that a reverse auction could favour the largest companies which will have the ability to cross-subsidize their bids but are unlikely to have the same understanding of and ability to meet a community’s needs as the locally-based provider. We’ll be watching how this project unfolds.”

Competitive Network Operators of Canada (CNOC), will also be watching to see what happens next.

“As the association that represents the voice of smaller, competitive communications service providers, we’re going to be looking closely to see if there are open access conditions, so that Ontarians benefit from a choice no matter where they live,” said Geoff White, CNOC’s executive director, in an email to Cartt.ca.

The Eastern Ontario Regional Network (EORN), Cogeco, Rogers and Bell meanwhile have each indicated unequivocal support for Ontario Connects.

EORN issued a press release earlier this week applauding the government’s investment in high-speed Internet. EORN, a non-profit created by the Eastern Ontario Wardens’ Caucus, is dedicated to improving rural connectivity. “We congratulate the Minister and the provincial government on this historic $4 billion investment,” said J. Murray Jones, chair of EORN, in the press release.

Cogeco published its own press release today, commending the government’s investment. A spokesperson from Rogers indicated in an email to Cartt.ca they “share the province’s goal of connecting more Ontarians,” while a Bell spokesperson noted the company is “looking forward to partnering with the Ontario government to bring broadband connectivity to the most difficult to reach communities,” in another email to Cartt.ca.