CALGARY – The Government of Alberta today announced new agreements with Bell Canada and Axia SuperNet Ltd. that will target rural Albertans.
The new agreements provide appropriate focus on service delivery, create cost savings for government and assure rural Albertans and service providers of quality, reliable SuperNet operation, says the press release.
"With SuperNet nearly complete, this was the logical time to review and restructure the operating agreement and make certain government’s investment is fully leveraged to ensure the success and development of the rural network. Our new agreements provide strong incentive for Bell and Axia to maximize use of SuperNet in rural Alberta," said restructuring and government efficiency Minister Luke Ouellette.
Under the new agreements, the government will have full rights of use for the high-speed broadband network. Bell Canada retains ownership of the fibre and wireless infrastructure with government having the option of assuming ownership at the end of the contract term.
All of the original SuperNet development principles such as promoting competition and rural development, and ensuring that affordable, timely service is available to rural Alberta are maintained in these new agreements that become effective upon completion of the SuperNet in September. Costs for Internet service providers, government, schools, health facilities and libraries remain safeguarded, adds the press release.
"These agreements uphold SuperNet’s original purpose of introducing competition and providing Internet service where it does not and may never have existed without this kind of provincial initiative," said Ouellette. He adds, "It’s exciting that SuperNet will become fully operational in Alberta’s centennial year."
The majority of Alberta’s schools, hospitals, libraries and government offices are now connected to SuperNet. Through Internet service providers, SuperNet will have the capacity to serve more than 86% of Alberta’s population, making SuperNet a key factor in rural Alberta’s social and economic development.
Alberta SuperNet is a broadband network linking approximately 4,200 government, health, library and education facilities in 429 communities across the province at affordable and sustainable costs to the Government of Alberta. Additionally, Alberta SuperNet creates a competitive market for the delivery of broadband services by private Internet service providers throughout the province to rural retail customers.
The contract to build SuperNet was signed with Bell and Axia in July 2001. At that time, it was estimated 30 Alberta communities had some access to high-speed Internet. Now more than 400 communities, 90 of which have less than 100 residents, will have access to high speed Internet services.
The government committed $193 million for the build of the rural network while Bell committed $102 million and was responsible for cost overruns.
Alberta SuperNet is comprised of a Base Area Network constructed, owned and operated by Bell in 27 of Alberta’s largest communities. The new agreements do not affect the Base Area Network. The Extended Area Network is comprised of 402 communities in rural Alberta.
The SuperNet network includes more than 12,000 kilometers of fibre and wireless technology. One of the principles of the project was to use existing fibre wherever possible. In addition to the Indefeasible Right of Use (IRU) just signed with Bell, the Alberta government holds four similar contracts with three other companies. IRU agreements are common practice in the telecommunications industry. With an IRU, the government will have all the required rights to the infrastructure.
The term of the restructured contract with Bell Canada is for 20 years, with four five-year renewal terms, which provides for up to a 40-year Indefeasible Right of Use. At the end of 30 years or earlier upon Bell default, the government can assume ownership.
As a result of this contract, government users will benefit from rate reductions on their monthly fees based on an increased number of users.
The principles of the original contract including the independence of the network manager (Axia), promoting competition and rural development and providing reasonable cost Internet service to rural Alberta remain in place.
