WHITEHORSE – The north needs to take a holistic approach to the modernization of its satellite and broadband infrastructure that empowers the consumer and not the “band-aid solution” that Northwestel is proposing. In its submission to the CRTC, ahead of a June 19, 2013 hearing in Whitehorse to review Northwestel’s $273 million modernization plan, SSi Micro, northern Canada's largest ISP, says Canada still lacks a coherent policy plan for broadband.
Rather than address key investments that would help modernize northern telecommunications, the main focus of the Northwestel plan is on items such as “advancements in wireless services” claims SSi.
“Essentially the new modernization plan appears to be nothing more than a new name for a non-? exceptional capital expenditure program, in line with what Northwestel has done in the past, but with essentially no commitment other than a commitment to and an unhealthy continued emphasis on thwarting competitors such as SSi,” writes Dean Proctor, Chief Development Officer, SSi Group to the CRTC.
“Northwestel does not focus on or propose how to achieve sustainably affordable backbone connectivity – and that is the major limitation to improving the quality, cost and diversity of communications services available to northerners, and in creating an environment that encourages new investment and innovation,” he adds.
SSi says it’s not clear exactly which communities are included in Northwestel’s “modernization plan” and in the “contingent group” since the information was filed in confidence. But added that deploying 3G access technology to “67 communities is certainly in many cases nothing more than a plan to overbuild the existing already modern local access facilities put in place by competitors such as SSi.”
It maintains that its broadband wireless infrastructure in 51 Northern communities is already capable of accessing online, on-?demand offerings, “i.e. it is already more advanced than Northwestel’s network in most of SSi’s northern communities.”
It claims a modernization plan for the north that is instead focused on attaining and maintaining full broadbandpenetration, with “world class” speeds in sustainably affordable fashion “could be expected to provide economic benefits in the range of 2.5% to 3% of GDP. This would represent in the range of $160 million in annual economic impact for Northern Canada,” claims Proctor in SSi’s CRTC submission.
“As the “old ways” of doing things do not work, a new and truly holistic approach is needed to ensure the delivery of affordable and sustainable broadband in the North, and to meet the communications needs of Northerners going forward. This goes far beyond the ability to stream video entertainment or have 3G/4G wireless access. Essential services such as health care, education, banking, policing, emergency response and business support all require a coherent broadband plan for the future. To ensure broadband access is available for all northern consumers in a sustainable fashion, backbone services – the satellite and fibre transport that link Northern communities to the rest of the world – must be affordable,” argues Proctor.
He adds that SSi believes the key to revising the regulatory framework will be to focus on long-?term solutions for affordable backbone connectivity and the delivery of broadband in the north, within a “dynamically competitive local telecoms sector.”
“In this regard, SSi is proposing that a ‘Utility Backbone’ regulatory approach be implemented to ensure open and fair access to the essential backbone that connects the north to the rest of the world – and to ensure that dominance in transport infrastructure is not used to constrain downstream retail markets. This will encourage greater choice, innovation and investment in the Northern communications market.”
SSi concludes that the current contribution system must be reformed with broadband “recognized as an essential service in the north, part of one’s basic service, and must become eligible for contribution subsidies. And as the Commission has previously implemented, the consumer of communications -? residential, government or business – should be empowered and able to select and transfer any applicable subsidy to the carrier providing the local service package that is most suitable and attractive.”
