Cable / Telecom News

Connecting low-income Canadians is worth the investment, Rogers says

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OTTAWA – Rogers Communications won't earn much from its program offering low-cost Internet to low-income households, but it’s worth the investment, says Deepak Khandelwal, Rogers’ chief customer officer.

“This is truly an investment that we are making in Canada and our economy,” Khandelwal told Cartt.ca Thursday at an Ottawa event announcing the expansion of its Connected for Success program to everywhere it provides wireline Internet service. “There are some people that are in financial hardship and lower income and we want to make sure that they can get access to it.”

Khandelwal said Rogers signed up 11,000 households during the program’s three-year pilot at rent-geared-to-income non-profit housing in Toronto. Connected to Success is now rolling out to the rest of Ontario, New Brunswick, and Newfoundland and Labrador, where 533 non-profit housing agencies with up to 150,000 tenants are eligible for the service. For those agencies that sign partnerships with Rogers, tenants can get Internet for $9.99 a month, including modem rental, for up to 10Mbps download speeds and up to 1 Mbps upload speeds. These low-income households can also get discounts on computers through partners referred by Rogers customer service representatives.

Some tenants at the Centretown Citizens Ottawa Corporation, one of the first outside Toronto to sign a partnership with Rogers, spoke at the event to say that not having Internet access has been a barrier, from needing to go online just to book library computers, to needing the Internet for kids to do their homework assignments.

The housing complex, in downtown Ottawa, has 254 units and more than 100 children live there. “People without access to the Internet at home are really missing out,” Khandelwal said at the news conference. “So much of our daily lives today depend on being connected.” While 91% of Canadians have Internet access, among those with household incomes under $25,000, that number is 70%, according to an Ipsos-Reid poll.

But even many middle-class Canadians are pulling back from wanting all the bells and whistles with their Internet, TV, and phone packages. When asked by Cartt.ca whether the $9.99 service was part of a trend toward pared-down things like skinny basic and Rogers’ own Internet 5 (at $24.99 a month for anyone), Khandelwal replied, “I think our goal is to make sure we have packages that meet everyone’s needs, whatever those needs happen to be… And so you’re continuing to see us expand the range of our offerings.” Asked whether Rogers might offer a discounted wireless broadband service for low-income earners, Khandelwal said, “At this point in time the program is as I defined it, it is Internet access.”

The Rogers announcement came the week before the CRTC basic telecom service review looking into whether broadband should be a basic service obligation for telecom companies. For low-income advocates like Debbie Barton, the manager of the rental department at the Centretown Citizens Ottawa Corporation, it should be. “The Internet is no longer a luxury in 2016, it’s a necessity,” she said at the news conference. The lack of access for low-income households is “creating a digital divide.” Barton went on to say, “Everyone in our community should have the same opportunities to learn and communicate with each other.”

When asked by Cartt.ca whether the Connected for Success program would make Rogers—the only large broadband provider in Canada doing this—look good before the Commission, Khandelwal said, “I want to make sure we do things for the customer.”