OTTAWA-GATINEAU – Northwestel will lay out $5 million in new and unplanned investments in its network infrastructure over the next three years as part of an agreement with the CRTC to rectify issues of non-compliance.
The Commission said Wednesday that Northwestel failed to obtain its approval for the rates it charged for nine of its Special Services Tariffs (SSTs) over seven years. After coming clean to the CRTC, the BCE-owned telco submitted a Part 1 application in February 2018 seeking retroactive approval for the rates that it had charged, but the Regulator denied that request later that year, adding that the non-compliance “represented a systemic disregard for the company’s regulatory obligations and the Commission’s authority.”
Under section 25(1) of the Telecommunications Act, no Canadian carrier can provide telecommunications services unless it is in accordance with a tariff filed with and approved by the CRTC.
The settlement directs Northwestel to invest $5 million to build or upgrade network infrastructure in its operating territory where it otherwise had no plans to do so, as follows:
– $3 million to bring fibre to First Nations offices, schools, health centres, and territorial and municipal government offices in Yukon, Northwest Territories, and northern British Columbia. Eligible customers may apply to Northwestel for funding.
– $2 million to expand cell phone service along unserved highways and major roadways in Yukon, Northwest Territories, and Nunavut. Locations will be determined following consultation with territorial governments.
Northwestel committed to completing construction of the projects within three years.
“We take Northwestel’s non-compliance with its regulatory obligations very seriously”, said CRTC chair and CEO Ian Scott, in a statement. “The corrective measures put in place will lead to investments that will have a positive effect in northern communities. The upgraded network infrastructure will enhance the quality of life and safety of Northerners through access to faster Internet service and wider cellphone coverage along major highways.”
Noting that Northwestel had already, of its own accord, implemented internal regulatory compliance safeguards, the CRTC added that this settlement resolves any outstanding issues related to the non-compliance identified in Northwestel’s application.
