By Ahmad Hathout
OTTAWA – The CRTC on Tuesday approved an increase in funding for two broadband projects in response to what the applicants have said are unanticipated costs that have emerged since their applications.
Telus was approved Tuesday for an additional $505,978 on top of its already allotted $1.6 million from the $750-million Broadband Fund to drive mobile wireless services to two communities in British Columbia. Meanwhile, Sogetel Mobilite was approved for an additional $285,801 on top of its already allotted $364,465 from the fund to build and/or upgrade mobile wireless infrastructure near two communities in Quebec.
Both applicants from the second round of funding said they have had to make changes in equipment to improve the “sustainability, resiliency and cyber security” of the project and had to deal with the increase in third-party labour and other costs not anticipated when they applied.
Sogetel also said it had to make a “minor deviation” from the planned fibre route.
Last week, Sichuun — which is running a joint venture with Naskapi Imuun and Redline Communications — was approved for an additional $84,274 on top of the existing allotted $297,332 to build and/or upgrade mobile wireless infrastructure in four communities in northeastern Quebec, with some coverage into Newfoundland and Labrador.
Sichuun noted the increased cost of goods as well, adding it needed to build an additional tower to connect 43 households in Newfoundland and Labrador.
Inflation has increased significantly since the start of the pandemic, which means the cost of goods for broadband builds has scaled accordingly. The pandemic has also slowed the supply chain down, meaning longer wait times for products and therefore a delay in builds.
The CRTC is currently considering broadening the Broadband Fund to include funding for maintaining and creating redundant networks.
