OTTAWA-GATINEAU – The CRTC has laid out a $233 million, four-year modernization plan for Northwestel that includes improved broadband Internet services and 4G wireless services for northern Canadians.
The Commission said Wednesday that these improvements must include:
– upgrading and expanding its broadband Internet service offering;
– extending wireless services to many additional communities; and
– upgrading equipment in order to support enhanced calling services, such as call display and call waiting, as well as local number portability and local network interconnection.
“We recognize that modern telecommunications services play an essential role in the North’s economic development and in meeting the growing demand for digital services such as health care, education and government services,” said CRTC chairman Jean-Pierre Blais, in a statement. “Northwestel’s plan will create many positive outcomes for Canadians in the North. We will be closely monitoring Northwestel as it implements its plan over the coming years to ensure its benefits are realized.”
Northwestel must submit a revised plan by March 31, 2014, that takes into account the CRTC’s decision and expectations. The plan must also include provide further details on the company’s investment in its fibre networks, the Commission's decision continued.
Noting that Northwestel’s plan cannot address the needs of communities that rely on satellite-based Internet services, the CRTC said that it will undertake an inquiry in 2014 to examine satellite transport services offered in Canada. It will also launch a proceeding to explore how infrastructure investments in transport facilities in Northwestel’s operating territory could be funded.
“A digital divide exists within Northwestel’s vast service territory,” added Blais. “Those communities that receive their Internet services over terrestrial facilities, such as fibre and microwave, receive much faster and more reliable services than those that are served by satellite technology. Without action, this digital gap will not be closed, and may in fact worsen.”
Wednesday’s decision also:
– determined that price cap regulation using the current basket structure and pricing constraints, subject to the adjustments outlined in this decision, continues to be the appropriate form of regulation for Northwestel’s tariffed services, and the regime will be in effect for the next four years;
– detailed that the rollout of Northwestel’s Modernization Plan will be monitored to ensure that the implementation targets are being met and that consumers in Northwestel’s operating territory benefit from the regulatory framework set out in this decision;
– modified the rates for Northwestel’s Wholesale Connect service previously approved in Telecom Order 2013-93 to more appropriately balance the need to ensure that Northwestel is reasonably compensated for its costs and continues to invest in its fibre networks with the need to ensure that competitors provide competitive alternatives in the marketplace; and
– decided to regulate Northwestel’s rates for retail Internet and Ethernet Wide Area Network services in terrestrially served communities in light of its findings that Northwestel has significant market power in the markets for these services.
Bell-subsidiary Northwestel provides telecommunications services throughout Canada’s three territories and parts of northern Alberta and British Columbia, covering four million square kilometres and four time zones. Its operating territory has a population of 121,000 in 96 communities.
In 2011, the CRTC expressed concern with the level of network investment by the company and the level, quality and reliability of telecommunications services available in the North. The Commission asked the company to develop a plan to address these concerns and to modernize its aging network, and held a public hearing last summer to review the plan.
