WOODSTOCK, N.B. – A company that already provides high speed Internet access to remote Canadians wants the federal cabinet to take another look at a CRTC decision which will help fund the build-out of broadband facilities to rural areas by the incumbent telcos.
Barrett Xplore, which sells satellite and fixed wireless high-speed Internet across Canada, "has requested federal Cabinet intervention in a flawed, out-of-date and competition-limiting decision," by the CRTC, the company said Friday.
The company will also ask commissioners to review the decision and will seek a stay of its implementation, pending completion of the review.
The Commission’s decision, announced in February and reported on by cartt.ca, would see about $620 to $650 million redistributed to Canadian incumbent telecom companies. The money is from surcharges which have been levied on urban customers since 2002 – held in deferral accounts – and the CRTC decided the money would be best spent on extending rural broadband, as well as to the disabled. As noted here, many rural dwellers already have some high speed options.
"This decision would seriously damage the many Internet service providers – including Barrett Xplore – now investing heavily in rural broadband across Canada," said Ed Barrett, founder and chairman. "ISPs and entrepreneurs have been investing millions of dollars of private capital to deploy rural broadband services, and the proof of our success is thousands of rural subscribers.
"Advances in fixed wireless and satellite broadband technology have provided rural Canada with an historic opportunity: to benefit from dramatic acceleration in the availability of urban quality broadband and from competition and choice in broadband telecommunication services," Barrett continued. "Decision 2006-9 deprives rural Canada of this opportunity and encourages continuation of a de facto monopoly in rural Canada for large telephone companies."
Barrett Xplore can provide satellite Internet service to anyone in Canada, but concentrates its marketing in rural areas, selling packages starting at $55 a month. However, its top-end Internet Access 300 plan, whose speed (2 Mbps downloads) is closest to what’s available from urban cable and telecom companies for under $50, is $250 a month.
ILECs have until June 30th to tell the Commission how it wants to spend the money and the CRTC’s decision said, in part, that the telcos must target unserved or underserved regions.
However, added Barrett, the spread of broadband to such places is happening already, and quickly. "The spread of true broadband to rural Canada is happening at an unprecedented rate. Big telcos don’t need a $620 million gift. By injecting subsidies to just a few providers, the CRTC will reduce choice, hurt private business and distort an active and growing market," he said.
"I believe that the federal Cabinet is committed to accountable spending and market-based provision of services, so I’m confident they’ll look favorably on our appeal. We’re going to try to meet with as many MPs as possible to tell them that private business has been, and is, providing rural broadband without subsidies. Now is the time to force the CRTC to account, before the money gets spent."
– Greg O’Brien
