By Ahmad Hathout
OTTAWA – Bell subsidiary Northwestel has filed late last month its proposed rates for entering the Connecting Families initiative, which provides affordable internet to low-income households.
Northwestel has proposed two packages: Connecting Families 1.0 that includes 15 Mbps download and 1 Mbps upload and 300 GB of data and a $1-per-GB overage charge for $10 per month. Connecting Families 2.0 will include the federal objective of 50 Mbps download and 10 Mbps upload with 400 GB of data and an identical overage charge for $20 per month. The 400 GB of data is 200 more than the latest and current program package, perhaps to compensate for the overage charge.
Northwestel said during a CRTC hearing on the far north in April that the regulator should dismiss calls for it to eliminate overage fees because it would cause congestion issues on its network and cripple its satellite services.
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.
It is proposing to waive installation and DSL surcharges and to provide the modem with Wi-Fi functionality and five email addresses at no charge for both packages.
It said in areas where it cannot support 15/1 speeds, it will propose its best available speeds at the same price. It previously said it would support the federal objective where it is feasible.
The telecom is proposing an effective date of October 24, 2023.
Comments on the proposals are due August 23.
Northwestel declared during a CRTC hearing on broadband in the far north in April that it would be participating in the telecom initiative after a number of participants expressed disappointment in its absence. Northwestel is the dominant telecom in the far north.
Before and in lieu of that, the Northwest Territories government proposed that the CRTC implement two affordability streams – a low-income subsidy and a universal service subsidy to deal with higher prices in the region. The government said it would prefer that Northwestel join the Connecting Families program.
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.
