Iristel urges PM to do something about withheld CRA funds affecting its response
By Ahmad Hathout
YELLOWKNIFE, NWT – Wildfires ravaging parts of the Northwest Territories are causing widespread devastation to homes, families and telecommunications networks, forcing operators to install backup systems and carefully enter repair territory as critical infrastructure burns.
Cartt asked some of the primary providers in the region to provide their perspectives on how they’re dealing with the wildfires that have burned many millions of hectares of land. It is Canada’s worst wildfire season ever, with more fires expected to come this fall.
Bell subsidiary Northwestel told us the company has seen the fires damage critical fibre lines, including a government-owned one that serves several northern NWT communities. To rectify this, the telecom diverted internet traffic to a backup microwave network and installed low-earth orbit satellite dishes from OneWeb to provide capacity to the largest community of Inuvik.
Northwestel said last week it cannot yet begin repair here because of the danger.
In southern NWT, the fires have burnt across Highway 1 in the area of Enterprise and “did significant damage to fibre infrastructure that serves the South Slave region,” the company told us. With the fire burning telecom equipment, it took the company “several days” for it to be safe enough to access the area to begin repairs.
The telecom said it’s been able to dig in several kilometers of new fibre in the region and restore service to the “vast majority” of communities since then, adding the technicians were working in “incredibly harsh conditions” as friends and family evacuated.
When Yellowknife, which serves as Northwestel’s operational headquarters, was evacuated, the telecom established an alternate network operations control centre in Whitehorse in Yukon “to ensure there was no break in the monitoring and maintenance of the northern network,” the company said.
“In the face of an unprecedented natural disaster, our frontline crews have stepped up to get communities connected in the most unforgiving conditions imaginable,” Northwestel president Curtis Shaw said in a statement to us. “We’re so grateful for their commitment. And we’re thankful for those across Canada showing such openness and generosity to the 130 Northwestel employees and their families who have evacuated from their homes.”
Northwestel fibre install
Jeff Philipp, president and CEO of far north provider SSi Canada, echoed the sentiment of the devastation wrought on Enterprise.
It “has been gutted,” Philipp said of Enterprise. “Enterprise was the gateway to the North and provided critical services to travelers,” he said.
“Lots of damage already with the potential for a lot more as the week warms up and with it higher speed winds,” he said.
Dean Proctor, chief development officer at SSi, added that the company has in place Starlink broadband satellites in Yellowknife as an alternative backbone to the south when its fibre backhaul goes down. He added that the company’s mobile wireless network in the capital has performed “very well.”
Philipp said much of the infrastructure, including buildings, water, sewage, power and telecom infrastructure in many communities have been affected and that some will be quicker to repair than others. He noted it could take years for the infrastructure to be fully rebuilt.
“This will be the real test of the preparations around Yellowknife,” Philipp added. “I do not believe the city, or [government of NWT], or first line responders could have done better. Amazing work by some fearless and tireless people. Our profound thanks to all of those still behind the fire lines. We appreciate them all.”
Philipp also reiterated the need for the CRTC to move faster on moving money from the $750-million Broadband Fund to providers.
SSi has said in submissions to the CRTC that money from the fund for northern broadband projects have either been exhausted, gone to competitors, or have been deferred or delayed.
“Decisions, and awarding contracts, to build this critical infrastructure needs to happen NOW,” Philipp told us for this story.
Rogers has pointed to a number of investment and preparedness strategies when asked about the situation.
Recall the Rogers network outage last summer that knocked out service to millions of Canadians and critical services. Since then, the cable company committed to separating its wireless and wireline infrastructure and spending billions of dollars to beef up its networks and redundancy capabilities.
Rogers said it has focused on alternate fibre routes – which allows traffic to divert to alternative paths –to ensure people and businesses are connected during disasters, including wildfires.
The company also noted that it continues to look at building off-grid cell sites in rural and remote communities and pointed to an agreement with SpaceX, owners of Starlink, and Lynk Global for satellite-to-mobile wireless connectivity to extend connectivity to places its on-the-ground (terrestrial) infrastructure doesn’t reach.
Otherwise, to assist in dealing with the fires, Rogers has waived long distance, texting and data overages; opened up Wi-Fi hotpots network for public access within the British Columbia interior; crediting customers who have lost service; and is supporting the Canadian Red Cross relief efforts by launching text-to-donate, matching all donations up to $50,000 until the end of the month.
Telus did not respond to a request for comment.
The situation has gotten so bad for Iristel, it has sent a direct letter to Prime Minister Justin Trudeau last week urging his government to do something on the company’s fight with the Canada Revenue Agency.
For the past four years, Iristel and the CRA have been in a legal fight over millions of dollars withheld by the tax agency that Iristel said is owed to it. The tax agency has alleged some part of the telecom’s call supply chain has been involved in a scheme that has refused to remit taxes to the government. The Supreme Court of Canada has agreed to hear Iristel’s case.
In the letter, Iristel said the tax agency has recently issued an assessment on the telecom with punitive penalties, making an already “severe” situation worse with the ongoing wildfires.
“The devastating wildfires in the Northwest Territories are causing untold destruction, endangering lives and property,” Iristel president and CEO Samer Bishay said in the letter. “At this critical juncture, when our expertise and infrastructure are needed most, the withheld funds resulting from this assessment are impeding our ability to deploy essential infrastructure and respond promptly to these emergencies.”
The letter added that the issue of withheld funds “disproportionately” affects smaller independent telecoms as opposed to larger ones that can absorb the cost. “This situation undermines healthy competition and places a heavier burden on companies that strive to serve remote regions.
“I respectfully request your immediate intervention in this matter,” the letter adds. “The stakes are exceptionally high, extending beyond our corporate interests to the very core of our commitment to public service and connectivity. By addressing this situation urgently, we can reaffirm Canada’s dedication to fostering innovation, supporting independent businesses and ensuring that vital telecommunications services are accessible to all, especially in times of crisis.”
All photos provided by Northwestel.
