By Ahmad Hathout
OTTAWA – The CRTC has approved Tuesday two low-cost internet packages proposed by Northwestel, formally integrating the Bell subsidiary into the Connecting Families program.
Effective Tuesday, the approved rates will provide eligible low-income Canadians in Northwestel’s footprint with access to two internet packages: a plan with 15 Mbps download and 1 Mbps upload with 300 GB of data for $10, with an overage charge of $1 per gigabyte; and a plan with the federal objective of 50 Mbps download and 10 Mbps upload with 400 GB of data for $20 with the same overage charge.
There was some concern from north service provider SSi Canada and that the low rates from the north’s dominant provider would undercut competition. But the CRTC reasoned Tuesday that the packages would drive more connectivity in the immediate term, it will only be available to certain low-income households, not all those who are eligible will subscribe, and the revenue generated from these eligible households would not be significant for competitors anyway.
“Furthermore, since Northwestel will be serving this market segment below cost, the Commission considers that any advantage to Northwestel or any related anti-competitive effects would likely be minimal. Whether and how competitors can offer services comparable to Northwestel’s services in the Far North is a broader issue under consideration in the Far North proceeding,” the CRTC said.
The Connecting Families 1.0 will be available to all its terrestrial communities, which includes DSL, cable and fibre, while the 2.0 will only be available to the cable and fibre communities. The telecom previously said it would not include satellite-dependent communities as none of the others in the current program provide that service to those areas.
Northwestel declared during a CRTC hearing on broadband in the far north in April that it would be participating in the Connecting Families initiative after a number of participants expressed disappointment in its absence.
Northwestel said it had to first enter into an agreement with Innovation Canada before filing the proposals.
The Connecting Families initiative launched in 2018 and is fully funded by the telecoms. The current 2.0 package available from the 18 other providers in the program includes the federal objective speeds with 200 GB of data for $20 per month. A 1.0 version costs $10 per month and includes 10 Mbps download and 100 GB of data.
The program is scheduled to run until 2027, after which renewals will be discussed.
Screenshot of Northwestel representatives at the CRTC far north hearing in April.
